Top Management Team and Exit Strategy in Bio Ventures

Abstract

There have been many studies about Top Management Team, examining the relationship between structure, attribute of TMT and performance, and the relationship between growth process and TMT. On the other hand, in an industry that needs a long time and high-level expertise before performance is triggered, it is assumed that performance, growth process, and the structure of TMT are significantly different from those of general venture companies. In this paper, we conducted an empirical analysis of the relationship between TMT structure and performance (especially exit strategies) by using questionnaire survey data of 167 bio venture companies with such high-level expertise. As a result, it became clear that adding a person with doctoral degree to TMT would hinder EXIT. It was also partially supported that adding a person with experience working at company to TMT would encourage EXIT.