Innovativeness of a Start-Up as a Criterion in Venture Capital Decision Making
Kredit und Kapital, Vol. 44, No, 4, pp. 509-541
31 Pages Posted: 25 Apr 2009 Last revised: 29 Sep 2013
Date Written: February 9, 2010
Innovativeness of a start-up is regarded as a prerequisite to acquire venture capital. However, it is neither obvious how to conceptualize nor how to measure it. Even though start-up innovativeness is of high practical relevance, no empirical research on the topic exists. This article is a first contribution to address this gap. We develop a conceptual model of the various dimensions of innovativeness of a start-up and verify it in a qualitative empirical study. Based on 19 in-depth interviews with venture capital decision makers we derive statements regarding the role of a start-up’s innovativeness in the venture capital funding decision. We find, among other things, that VCs evaluate the various dimensions of innovativeness rather differently, and that a higher level of innovativeness does not necessarily lead to a higher probability of securing venture capital. These results can serve to derive testable hypotheses. We conclude by deriving implications for research and practice. Paper is in German.
Note: Downloadable document is in German.
Keywords: Venture Capital, Innovativeness, Innovative Business Model, Risk Evaluation
JEL Classification: G24, L26, O30
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