This book examines the proliferation of new sources of entrepreneurial finance and how these sources have the potential to make it easier for ventures to raise capital and grow. To date, entrepreneurial finance literature has developed a rich tradition of research on venture capital and angel finance. However, the emergence of ‘new’ sources of finance – such as crowdfunding – and the limited attention paid to ‘traditional’ debt financing and financial bootstrapping offer opportunities to explore, from different points of view and theoretical perspectives, the challenges that ventures face.
The objective of this book is to explore these new and traditional sources of finance; suggest how these phenomena can be better understood conceptually; and guide new ways of understanding the topic in future, especially for researchers. The introduction outlines the new sources of entrepreneurial finance, and in comparing them with more traditional sources, proposes challenges in our conceptual understanding of these new and traditional sources. The subsequent chapters deal with important topics, including looking at the way different funding sources may interact; factors that impede family firms from getting external funding; how best to succeed with equity crowdfunding by looking at pre-selection processes; considering differences in perceptions towards funding sources arising from whether entrepreneurs are native born or immigrants; factors to consider when funding specialized assets in high uncertain sectors such as biotechnology; and the internationalization of business angel activity. This book was originally published as a special issue of the Venture Capital journal.
Table of Contents
Introduction – Entrepreneurial finance: new frontiers of research and practice 1. De-segmenting research in entrepreneurial finance 2. Attitudes of family firms toward outside investors: the importance of organizational identification 3. The interaction of equity crowdfunding platforms and ventures: an analysis of the preselection process 4. High-growth entrepreneurial firm funding: a qualitative study of native-born and immigrant entrepreneurs 5. Dedicated funding for leasing and sharing research and test facilities and its impact on innovation, follow-on financing and growth of biotech start-ups: the Mibiton case 6. The internationalisation of business angel investment activity: a review and research agenda
Cristiano Bellavitis is a Lecturer and Assistant Professor of Innovation and Entrepreneurship in the Faculty of Management and International Business of Auckland Business School, New Zealand.
Igor Filatotchev is Professor of Strategy and Corporate Governance at Cass Business School, City University of London, UK, and a Visiting Professor at Wirtschafts Universität Vienna, Austria.
Dzidziso Samuel Kamuriwo is Senior Lecturer in Strategy at Cass Business School, City University of London, UK.
Tom Vanacker is Associate Professor of Entrepreneurial Finance at Ghent University, Belgium.