A Theory of Gazelle Growth: Competition, Venture Capital Finance, and Policy

Research output: Contribution to journalArticle


This paper proposes a theory of gazelle growth in which gazelles can grow either organically or through acquisitions. The model includes three types of firms: incumbent, target, and gazelle. We show that the lower cost of organic growth can increase the incentives for acquisition growth because the incumbent understands that if it acquires the target firm, the gazelle will then invest organically in order to grow, and therefore, the acquisition will not be enough to protect the incumbent's market power. The gazelle could then acquire the target firm at a good price. We also show that financial support for the organic growth of gazelles can increase gazelles’ growth through acquisitions because incumbents’ preemptive motives are reduced.


Research areas and keywords

Subject classification (UKÄ) – MANDATORY

  • Business Administration
  • Economics
Original languageEnglish
Article number101019
JournalNorth American Journal of Economics and Finance
Publication statusPublished - 2019 Nov
Publication categoryResearch