Scaling Up Firms in Entrepreneurial Ecosystems: Fintech and Lawtech Ecosystems Compared

48 Pages Posted: 10 Feb 2020

See all articles by Mari Sako

Mari Sako

University of Oxford - Said Business School

Matthias Qian

University of Oxford

Mark Verhagen

University of Oxford, Nuffield College, Students

Richard Parnham

University of Oxford, Said Business School, Students

Date Written: January 15, 2020

Abstract

What factors drive the scaling up of firms in entrepreneurial ecosystems? We address this question by investigating whether startup founders’ within-ecosystem social ties explain firms’ relative success. We develop a novel database of startup companies and their founders in two markets (fintech and lawtech) and three locations (London, New York City, and San Francisco Bay Area), resulting in six ecosystems. We find that ecosystems with denser social ties experience faster growth and earlier timing for external funding. Within each ecosystem, startup founders with denser social ties achieve faster growth and earlier external funding. Thus, social ties are key metrics indicative of social capital, that can be captured at the ecosystem and individual levels. We suggest different ways in which these metrics can be computed and may be applied in a robust manner to all startups and ecosystems, with utility for entrepreneurs, investors, and policy makers.

Keywords: Entrepreneurial ecosystem, social ties, network analysis, Fintech, Lawtech, Crunchbase, LinkedIn, Burning Glass

JEL Classification: J24, L14, L16, L26, L84, L86, M13, O33

Suggested Citation

Sako, Mari and Qian, Matthias and Verhagen, Mark and Parnham, Richard, Scaling Up Firms in Entrepreneurial Ecosystems: Fintech and Lawtech Ecosystems Compared (January 15, 2020). Available at SSRN: https://ssrn.com/abstract=3520533 or http://dx.doi.org/10.2139/ssrn.3520533

Mari Sako (Contact Author)

University of Oxford - Said Business School ( email )

Park End Street
Oxford, OX1 1HP
Great Britain

Matthias Qian

University of Oxford ( email )

Mansfield Road
Oxford, Oxfordshire OX1 4AU
United Kingdom

Mark Verhagen

University of Oxford, Nuffield College, Students ( email )

New Road
Oxford
United Kingdom

Richard Parnham

University of Oxford, Said Business School, Students ( email )

Oxford, OX1 5NY
United Kingdom

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