TABLE 3-3 Status of Venture-funded Firms

Status

 

Number of Firms

Percentage of Firms

Likely Excluded by SBA Ruling

 

Still privately held

63

34.4

Excluded Also by Other Factors

 

Out of business

19

 

 

Now foreign owned

4

 

 

Acquired

46

 

 

Total

69

37.7

Possibly Excluded

 

NASDAQ

45

 

 

AMEX

3

 

 

NYSE

1

 

 

OTC

1

 

 

IPO

1

 

 

Total

51

27.9

Total Venture-funded Firms

183

 

SOURCE: VentureSource, Hoover’s Small Business Database.

TABLE 3-4 Exclusion Status of Venture-funded Firms

Status

Number of Firms

Percent of Excludable VC-funded Firms

Percent of All Phase II Winners

Excluded (privately held, still otherwise eligible)

63

34.4

4.1

Excluded (other grounds)

69

37.7

4.5

Possibly Excluded (publicly traded)

51

27.9

3.3

Total

183

100.0

11.9

SOURCE: U.S. Small Business Administration; VentureSource. NRC calculations.

NOTE: Notes on total sample: Estimating the total number of NIH award winners is not an exact science. Data are maintained by firm names, which not only change, but are often recorded in nonstandard ways—a firm can be recorded separately as “Inc” “Inc,” Inc.” “Incorporated” or the “Inc” excluded altogether. Typos are frequently found in addition. The method used here for addressing this problem is to take the raw data from SBA, eliminate all suffixes, commas, and periods, and then review each individual record by hand. This was a three-step process. Initial review eliminated most of the duplicate entries. A second review generated a list of 1,567 firms. Final review, which took a more aggressive approach by eliminating duplicate names for firms in the same state and region, generated a final list of 1,536 firms.



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