Startup ventures and equity finance: how do business accelerators and business angels’ assess the human capital of socio-environmental mission led entrepreneurs?

Pierrakis, Yannis ORCID logoORCID: https://orcid.org/0000-0002-5422-9957 and Owen, Robyn ORCID logoORCID: https://orcid.org/0000-0003-4241-3367 (2022) Startup ventures and equity finance: how do business accelerators and business angels’ assess the human capital of socio-environmental mission led entrepreneurs? Innovation: Organization & Management . pp. 1-25. ISSN 1447-9338 [Article] (Published online first) (doi:10.1080/14479338.2022.2029706)

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Abstract

We investigate the role of entrepreneurs’ human capital on the potential of newly created ventures to receive equity funding from Accelerators and Business Angels using a resource-based approach to entrepreneurship theory. Using data from 10,563 for-profit innovative ventures, we find significant differences between those two groups. More specifically, formal education and founding experience of the entrepreneurial team is positively associated with the likelihood of the team to receive equity from Angels but negatively associated with the likelihood of the team to receive equity from Accelerators. Overall, our results are in line with the theoretical argument that human capital signals are important in reducing the information asymmetries faced by angels and ultimately driving entrepreneurs’ success in securing angel funding, but our results also suggest that some aspects of human capital signals do not contribute to the entrepreneur’s success in receiving accelerator funding. Our findings have important repercussions for the quality of design and operation of both private and state supported programmes and accelerator managers

Item Type: Article
Keywords (uncontrolled): Management of Technology and Innovation
Research Areas: A. > Business School > Centre for Enterprise and Economic Development Research (CEEDR)
Item ID: 34682
Notes on copyright: This is an Accepted Manuscript of an article published by Taylor & Francis in Innovation: Organization & Management on 31 Jan 2022, available at: http://www.tandfonline.com/10.1080/14479338.2022.2029706
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Depositing User: Jisc Publications Router
Date Deposited: 10 Feb 2022 11:14
Last Modified: 29 Jun 2022 04:26
URI: https://eprints.mdx.ac.uk/id/eprint/34682

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