A nonlinear relationship between the team composition and performance in university spin-offs

University spin-offs are a peculiar type of venture that encapsulate a core technology or key scientific knowledge stemming from academic research activities and that are founded by university personnel, professors, or researchers. The high level of scientific knowledge of the team is a critical factor for the new academic venture, but previous research shows that the low cognitive variety of the team members, and in particular, the absence of market-based knowledge, may hinder subsequent performance rates. The aim of the paper is to understand how the degree of composition variety of the founding team affects the growth performance of the university spin-offs, given the founders’ roles in shaping the future development path of the new ventures and their origin within the scientific and academic domain. Based on a new hand-picked database of Italian university spin-offs, we evaluate the nonlinear relationship between founding teams with low, moderate, and high levels of composition variety and subsequent growth performance by studying also the role of external backers as moderating variables. Results show a higher performance with high or low levels of founding team variety and a lower performance with moderate levels of variety. In addition, venture capitalist funds play a positive moderating role.