Publicação
Understanding early-stage VC decision-making : the role of the entrepreneur’s experience in obtaining equity financing within the German entrepreneurial ecosystem
| Resumo: | In recent decades, there has been a significant rise in disruptive and innovative technological advancements that hold great promise for both the economy and society. Startups have played a significant role in this trend, becoming a crucial part of the dynamic German entrepreneurial ecosystem. Scholars agree that these ventures rely heavily on access to venture capital to fuel their operations and achieve their full potential. However, despite the crucial role of venture capital for start-ups, research on early-stage VC decision-making is still rare due to the subjective nature of the topic. Previous studies have mainly relied on quantitative methods, leaving ample room for qualitative research to generate new theories on the topic using grounded theory. Hence, this study employs the Gioia et al. (2013) approach on grounded theory to establish a model explaining the decision-making of early-stage funds in Germany and the rather unexplored role of the entrepreneur’s previous experience. The grounded theory model created based on the qualitative data proposes four aggregate dimensions which influence early-stage VC decision-making in Germany: 1) Assessment of Macroenvironment/Alignment with VC Interests, 2) Individual Approach to Venture Target, 3) Know-How of Founding Team, 4) Financial Viability and Venture Potential. The findings indicate that the entrepreneurs’ previous experience can serve as strong positive signaling in a VCs decision-making process, however not as the sole driver of an investment decision. |
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| Autores principais: | Tyralla, Louis |
| Assunto: | Venture Capital VC decision-making Human capital Entrepreneurship Capital de risco Decisões de capital de risco Capital humano Empreendedorismo |
| Ano: | 2023 |
| País: | Portugal |
| Tipo de documento: | dissertação de mestrado |
| Tipo de acesso: | acesso aberto |
| Instituição associada: | Universidade Católica Portuguesa |
| Idioma: | inglês |
| Origem: | Veritati - Repositório Institucional da Universidade Católica Portuguesa |
| Resumo: | In recent decades, there has been a significant rise in disruptive and innovative technological advancements that hold great promise for both the economy and society. Startups have played a significant role in this trend, becoming a crucial part of the dynamic German entrepreneurial ecosystem. Scholars agree that these ventures rely heavily on access to venture capital to fuel their operations and achieve their full potential. However, despite the crucial role of venture capital for start-ups, research on early-stage VC decision-making is still rare due to the subjective nature of the topic. Previous studies have mainly relied on quantitative methods, leaving ample room for qualitative research to generate new theories on the topic using grounded theory. Hence, this study employs the Gioia et al. (2013) approach on grounded theory to establish a model explaining the decision-making of early-stage funds in Germany and the rather unexplored role of the entrepreneur’s previous experience. The grounded theory model created based on the qualitative data proposes four aggregate dimensions which influence early-stage VC decision-making in Germany: 1) Assessment of Macroenvironment/Alignment with VC Interests, 2) Individual Approach to Venture Target, 3) Know-How of Founding Team, 4) Financial Viability and Venture Potential. The findings indicate that the entrepreneurs’ previous experience can serve as strong positive signaling in a VCs decision-making process, however not as the sole driver of an investment decision. |
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