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Abstract

The market for entrepreneurial finance has witnessed the arrival of new players – specifically, different types of crowdfunding platforms – which have joined the more traditional forms of entrepreneurial finance such as BAs and VCs over the last decade. Taking stock of this increasingly diverse landscape, the present study explores the concept of a complex funding trajectory and its impact on the dynamics of nascent venture governance. Using a processual case-study design, we explore the particular funding trajectory of a young technology venture, successively combining different actors: reward based crowdfunding (RBC) first, then equity based crowdfunding (ECF) combined with business angels (BAs), followed by ECF combined with BAs and VCs. Our contribution to the literature is two-fold. The case makes an empirical contribution by deepening insights from prior quantitative studies on the determinants of follow-on funding after initial crowdfunding campaigns. The present study also makes a theoretical contribution by demonstrating that, beyond particular determinants of fundraising from various sources linked to initial venture characteristics and individual campaign attributes, the specific shape and sequencing of the overall funding trajectory plays a central role for the success of follow-on funding and the nascent governance of the young venture.
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Crowdfunding, business angels, and venture capital: an exploratory study of the concept of
the funding trajectory
Véronique Bessière, Eric Stéphany, Peter Wirtz
Venture Capital, April 2019, Taylor & Francis
DOI: 10.1080/13691066.2019.1599188
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Crowdfunding, business angels, and
venture capital: the concept of the
funding trajectory
What is it about?
The market for entrepreneurial nance has witnessed the arrival of new players
specically, dierent types of crowdfunding platforms which have joined the more
traditional forms of entrepreneurial nance such as BAs and VCs over the last
decade. Taking stock of this increasingly diverse landscape, the present study
explores the concept of a complex funding trajectory and its impact on the dynamics
of nascent venture governance. The specic shape and sequencing of the overall
funding trajectory plays a central role for the success of follow-on funding and the
nascent governance of the young venture.
Why is it important?
The study focuses on deepening the understanding of a specic funding trajectory,
among many potential trajectories, drawn across the complex landscape of the
presentday entrepreneurial nance market. To the best of our knowledge, this is the
rst study of its kind, examining RBC, ECF, BAs, and VCs and their concurrent
interactions.
The following have contributed to this page: Peter WIRTZ
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