TABLE 3-4Exclusion Status of Venture-funded Firms

StatusNumber of FirmsPercent of Excludable VC-funded FirmsPercent of All Phase II Winners
Excluded (privately held, still otherwise eligible)6334.44.1
Excluded (other grounds)6937.74.5
Possibly Excluded (publicly traded)5127.93.3

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.

From: 3, Venture Funding for NIH Phase II Winners, 1992–2002

Cover of Venture Funding and the NIH SBIR Program
Venture Funding and the NIH SBIR Program.
National Research Council (US) Committee for Capitalizing on Science, Technology, and Innovation: An Assessment of the Small Business Innovation Research Program; Wessner CW, editor.
Washington (DC): National Academies Press (US); 2009.
Copyright © 2009, National Academy of Sciences.

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