The paper presents the concept of Firms’ Growth Profiles (FGPs) portraying the idea that the institutional environment confers upon firms a limited set of path-dependent growth options. The FGP concept is demonstrated by examining sequences of financial liquidation actions (raising funds from venture capitalists, through public offerings or from strategic investors) of Israeli Hi-Tech firms. Results show that 89% of firms are classified into one of two most frequent sequences. The choice of the most frequent financial liquidation growth profile (sole venture capitalist based finance) is explained by: duration of financing sequence, year of financing sequence initiation and firm age.
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