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From the theories of financial resource acquisition to a theory for acquiring financial resources - how should digital ventures raise equity capital beyond seed funding
Australian Centre for Entrepreneurship Research, Queensland University of Technology, Australia.
Australian Centre for Entrepreneurship Research, Queensland University of Technology, Australia.
Australian Centre for Entrepreneurship Research, Queensland University of Technology, Australia.
Jönköping University, Jönköping International Business School, JIBS, Business Administration. Australian Centre for Entrepreneurship Research, Queensland University of Technology, Australia.ORCID iD: 0000-0002-6363-1382
2021 (English)In: Journal of Business Venturing Insights, ISSN 2352-6734, Vol. 16, article id e00278Article in journal (Refereed) Published
Abstract [en]

For many digital ventures, acquiring financial resources in multiple rounds beyond seed funding to grow has become an important part of their entrepreneurial journey. The success rate of raising equity capital beyond their seed investments is, however, very low. Existing entrepreneurship studies on financial resource acquisition have explored separately how entrepreneurs organize their networks, establish venture legitimacy, and decide on funding sources. However, despite being identified as an important subprocess in new venture creation, little is known about why, when, and how entrepreneurs engage potential investors to increase the likelihood of post-seed investments. Hence, this paper synthesizes the literature on financial resource acquisition, theoretical concepts in entrepreneurial financing, and practice knowledge to frame a set of design principles to create a prescriptive process model to increase the likelihood of success in post-seed financial resource acquisition.

Place, publisher, year, edition, pages
Elsevier, 2021. Vol. 16, article id e00278
Keywords [en]
Design science, Design principles, Process model, Financial resource acquisition, New venture funding, Startup fundraising, Entrepreneurial finance
National Category
Business Administration
Identifiers
URN: urn:nbn:se:hj:diva-55255DOI: 10.1016/j.jbvi.2021.e00278Scopus ID: 2-s2.0-85122732761Local ID: ;intsam;781400OAI: oai:DiVA.org:hj-55255DiVA, id: diva2:1616883
Available from: 2021-12-05 Created: 2021-12-05 Last updated: 2022-01-25Bibliographically approved

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Davidsson, Per

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