Follow the money: the funding acquisition process of nascent ventures




Inizio: Gen 1 | 10:00 am

Fine : Gen 1 | 11:00 am


Via Raffaele Lambruschini, 4/B 20156 Milano Milano

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Friedemann Polzin
Assistant Professor | Utrecht University School of Economics (The Netherlands)

In view of the problems linked to the acquisition of funding by new ventures, the literature often assumes a ‘pecking order’ of finance acquisition: New ventures are expected to first access their founders’ resources, to then acquire funding from family and friends , and in a last step to acquire equity and debt from external (institutional) sources. A second strand of literature analysed the bootstrapping behaviour of nascent ventures. We aim to integrate these largely separate literatures and explore how the funding acquisition process evolves at the firm level. Based on novel optimal matching techniques, we identify the most typical funding acquisition processes of nascent ventures regarding the sequence (including transition) and context. In accordance with bootstrapping and POT most nascent ventures rely on bootstrapped (equity) finance. However we are also able to theorize around deviations from this situation such as using combinations of debt and founder equity from the start. Furthermore, we use binary logistic regressions to identify the determinants of funding acquisition processes. As a result we offer a more realistic picture of how funding acquisition processes evolve in nascent venture.

Friedemann Polzin is Assistant Professor at Utrecht University School of Economics (section Entrepreneurship), Sustainable Finance Lab (SFL), European Centre for Alternative Finance (ECAF), and has been a visiting researcher at SPRU – Science Policy Research Unit, University of Sussex. He is also a senior advisor to the Sustainable Business Institute (SBI) in Germany. Friedemann holds a PhD in Business Economics from EBS Business School and a MSc in Business Administration from the University of Jena. He investigates the financing of (sustainable) entrepreneurship and innovation, corresponding organizational, legal and institutional arrangements as well as the political environment required for a transition towards a green economy. His work has been published in leading innovation, entrepreneurship, sustainability and energy journals as well as practioner outlets and popular media.

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Department of Management, Economics and Industrial Engineering
Building B26/B – Room 2.23 – second floor
Via Lambruschini 4/B, Milano

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