Startup Success Factors in the Capital Attraction Stage: Founders’ Perspective

27 Pages Posted: 18 Feb 2020 Last revised: 11 May 2020

Date Written: November 2, 2018

Abstract

Only a small percentage of startups attract capital from venture capital investors. To determine the factors which owners of startups consider the most important for attracting seed venture investments, the founders of 40 startups in Latvia and Russia were questioned. The researchers compared organizational and financial factors’ importance for two groups of entrepreneurs: those who succeeded and those who failed in attracting funding. The results of the study indicate certain differences between the viewpoints of founders and investors regarding success factors. Based on the factor and regression analysis, the authors developed a model to forecast success in capital attraction.

Keywords: seed capital attraction, startup founders, startup fundraising success factors, venture capital investors

JEL Classification: G24, G32, D81

Suggested Citation

Prohorovs, Anatolijs and Bistrova, Julija, Startup Success Factors in the Capital Attraction Stage: Founders’ Perspective (November 2, 2018). Available at SSRN: https://ssrn.com/abstract=3523990 or http://dx.doi.org/10.2139/ssrn.3523990

Anatolijs Prohorovs (Contact Author)

RISEBA University ( email )

Meza iela 3
Riga, LV-1048
Latvia

Julija Bistrova

Riga Technical University ( email )

1 Kalku Street
Riga, LV-1658
Latvia

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