University of Twente Student Theses


Investor on board : needs and expectations of early-stage high-tech start-ups in Berlin

Leplow, J. (2016) Investor on board : needs and expectations of early-stage high-tech start-ups in Berlin.

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Abstract:Purpose – During the last decades, venture capital has become one of the main sources to finance start-ups. However, one can still often notice that the resulting relationship between investor and start-up does not satisfy either of the parties. This can partly be attributed to investors not knowing all about the upfront expectations and needs of start-ups. Therefore, the purpose of this research is to increase the investor’s awareness of these factors to enhance the matching process and enable more effective cooperation. Design/methodology – The required data was retrieved through surveys, which were completed by 35 entrepreneurs from Berlin. First, the respondents were separated into two focus groups. The first group consisted of entrepreneurs from start-ups, which were not financed but looking for an investor. The other group was composed of entrepreneurs, whose firms had already been financed. These respondents were asked to answer the survey under the assumption that they could search their first investor again with their current knowledge and expertise. Thereby, it could be analyzed to what extent the financing process has influence on the entrepreneur’s perception and compare the perceived needs between already financed and not-financed start-ups. Findings – The analysis of the data revealed that the majority of the start-ups in the Berlin eco-system require access to an investor’s network in addition to the capital. By comparing the two focus groups, it is shown that this applies to both. Furthermore, most entrepreneurs would select an investor based on the ability to engage in activities, which bring additional value to the start-up. Finally, the majority expects an investor to take a networking role and linking the entrepreneur with important stakeholders and further business contacts. Originality/value – The uniqueness of this research refers to the consideration of start-up needs in addition to the required capital and the corresponding expectation of an investor. Prior researchers have already extensively discussed which factors enable a venture capital investor to select a promising start-up, but yet only little is known about the specific needs and corresponding expectations of start-ups.
Item Type:Essay (Bachelor)
Faculty:BMS: Behavioural, Management and Social Sciences
Subject:85 business administration, organizational science
Programme:International Business Administration BSc (50952)
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