Rethinking New Venture Growth: A Time Series Cluster Analysis of Biotech Startups’ Heterogeneous Growth Trajectories  

Startups are crucial job creators and drivers of economic growth. Research on startups has predominantly targeted high-growth startups, while a comprehensive understanding of alternative growth journeys remains limited. Addressing this gap, we employ the theory of early firm growth and the time-calibrated theory of entrepreneurial action to examine 416 biotech startups. We use time series cluster analysis to unveil four heterogeneous new venture growth trajectories. These are characterized by unique timings, paces, and sequences of financial, human, and innovative resource-related activities. This study contributes to new venture growth research, particularly in science-based high-tech startups, with its nuanced understanding of diverse growth pathways, including intriguing notions of early failure, growth reversal, and high and moderate steady growth.