How does disruptive innovation influence the funding decisions of different venture capital investors? An empirical analysis on the role of startups' communication

IF 7.4 2区管理学 Q1 BUSINESS

Long Range Planning Pub Date : 2023-04-01 DOI:10.1016/j.lrp.2022.102293

Mariangela Piazza , Erica Mazzola , Giovanni Perrone , Wim Vanhaverbeke

{"title":"How does disruptive innovation influence the funding decisions of different venture capital investors? An empirical analysis on the role of startups' communication","authors":"Mariangela Piazza , Erica Mazzola , Giovanni Perrone , Wim Vanhaverbeke","doi":"10.1016/j.lrp.2022.102293","DOIUrl":null,"url":null,"abstract":"<div><p>Entrepreneurs present their ideas in a favorable light through compelling communications that may shape the investors' impressions about the value of the startup's technology and its potential to disrupt. Assessing such communications, venture capital (VC) investors get an impression of the startup's technology and shape their willingness to commit resources to it. Since diverse kinds of VC investors pursue alternative investment objectives, they may develop different impressions of the startup's technology and accordingly make different resource commitment decisions. This paper aims to investigate the resource commitment decisions of VC investors when financing startups communicating disruptiveness by distinguishing between independent venture capitalists (IVC) and corporate venture capitalists (CVC). Analyzing data about 664 medical device and biotech startups in a 10-year period, we found that communicating disruptiveness decreases the amount of funding committed by IVC, while it has a curvilinear effect on the amount of funding provided by CVC. Our findings contribute to the literature and provide important implications for managers of startups aiming to secure funding from different VC investors.</p></div>","PeriodicalId":18141,"journal":{"name":"Long Range Planning","volume":null,"pages":null},"PeriodicalIF":7.4000,"publicationDate":"2023-04-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":"3","resultStr":null,"platform":"Semanticscholar","paperid":null,"PeriodicalName":"Long Range Planning","FirstCategoryId":"91","ListUrlMain":"https://www.sciencedirect.com/science/article/pii/S0024630122001121","RegionNum":2,"RegionCategory":"管理学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":null,"EPubDate":"","PubModel":"","JCR":"Q1","JCRName":"BUSINESS","Score":null,"Total":0}

引用次数: 3

Abstract

Entrepreneurs present their ideas in a favorable light through compelling communications that may shape the investors' impressions about the value of the startup's technology and its potential to disrupt. Assessing such communications, venture capital (VC) investors get an impression of the startup's technology and shape their willingness to commit resources to it. Since diverse kinds of VC investors pursue alternative investment objectives, they may develop different impressions of the startup's technology and accordingly make different resource commitment decisions. This paper aims to investigate the resource commitment decisions of VC investors when financing startups communicating disruptiveness by distinguishing between independent venture capitalists (IVC) and corporate venture capitalists (CVC). Analyzing data about 664 medical device and biotech startups in a 10-year period, we found that communicating disruptiveness decreases the amount of funding committed by IVC, while it has a curvilinear effect on the amount of funding provided by CVC. Our findings contribute to the literature and provide important implications for managers of startups aiming to secure funding from different VC investors.

查看原文本刊更多论文

颠覆性创新如何影响不同风险投资者的融资决策?创业公司沟通作用的实证分析

企业家们通过引人注目的沟通来表达他们的想法，这些沟通可能会影响投资者对初创公司技术价值及其破坏潜力的印象。通过评估这种沟通，风险投资（VC）投资者会对初创公司的技术产生印象，并形成他们投入资源的意愿。由于不同类型的风险投资投资者追求不同的投资目标，他们可能会对初创企业的技术产生不同的印象，从而做出不同的资源投入决策。本文旨在通过区分独立风险资本家（IVC）和企业风险资本家（CVC），研究VC投资者在为初创企业融资时的资源承诺决策。分析了10年内664家医疗设备和生物技术初创公司的数据，我们发现沟通中断会减少IVC承诺的资金量，而对CVC提供的资金量有曲线影响。我们的研究结果对文献有贡献，并为旨在从不同风险投资投资者那里获得资金的初创公司的管理者提供了重要启示。

本文章由计算机程序翻译，如有差异，请以英文原文为准。

求助全文

约1分钟内获得全文求助全文

来源期刊

Long Range Planning Multiple-

CiteScore

13.00

自引率

7.10%

发文量

期刊介绍： Long Range Planning (LRP) is an internationally renowned journal specializing in the field of strategic management. Since its establishment in 1968, the journal has consistently published original research, garnering a strong reputation among academics. LRP actively encourages the submission of articles that involve empirical research and theoretical perspectives, including studies that provide critical assessments and analysis of the current state of knowledge in crucial strategic areas. The primary user base of LRP primarily comprises individuals from academic backgrounds, with the journal playing a dual role within this community. Firstly, it serves as a platform for the dissemination of research findings among academic researchers. Secondly, it serves as a channel for the transmission of ideas that can be effectively utilized in educational settings. The articles published in LRP cater to a diverse audience, including practicing managers and students in professional programs. While some articles may focus on practical applications, others may primarily target academic researchers. LRP adopts an inclusive approach to empirical research, accepting studies that draw on various methodologies such as primary survey data, archival data, case studies, and recognized approaches to data collection.