Giovanna Vallanti (Luiss University)
Alessandro Muscio and Giuseppina Testa
We study the role of university regulations and spinoff characteristics in influencing the ability of academic spinoffs (ASOs) to secure external financing. Using a panel of 1,070 Italian ASOs from 2000 to 2023, we analyse how university-level signals, such as institutional policies, research quality, and technology transfer mechanisms, interact with firm-level signals, including founder credibility and patent activity, to shape investment decisions. We employ Probit and Tobit models to distinguish between the extensive margin (probability of receiving funding) and the intensive margin (amount of funding secured). Our findings suggest that university regulations, particularly those requiring academic founders to retain equity, enhance the likelihood of funding by signalling commitment and reducing information asymmetry. However, these policies do not influence the amount invested, which depends more on spinoff-level characteristics. Strong founders and patent activity serve as key signals that not only increase the probability of funding but also affect investment size. These results highlight the importance of both institutional and firm-level signals in shaping spinoff financing outcomes.