Founding angels as early stage investment model to foster biotechnology start-ups

1969 ◽  
Vol 17 (2) ◽  
Author(s):  
Gunter Festel
Keyword(s):  
North America ◽  
Business Model ◽  
Early Stage ◽  
Academic Research ◽  
Investment Strategy ◽  
Investment Model ◽  
Start Up ◽  
Start Ups ◽  
Innovation Processes

As a rule, in biotechnology and other technologies, a gap exists between innovations coming from academic research and the commercialisation of the results, which is a serious barrier for innovation processes. This article investigates the role of founding angels as an early stage investment model, which has been applied in North America for a number of years and is now also being established in Europe. Focus is the commercialisation of pre-seed and seed stage technologies developed at universities and research institutions. Founding angels close the gap by actively founding and building up biotechnology start-up companies, together with scientists, typically before the engagement of business angels and venture capital. For providing business expertise and day-to-day operational support they are not compensated monetarily, but with an equity share of the new company. This article analyses the approach and investment strategy of founding angels and contains case studies from Germany and Switzerland showing how this business model is realised.

Achieving and Sustaining New Knowledge Development in High-Expectation Start-ups

2010 ◽  
Vol 24 (1) ◽  
pp. 47-53
Author(s):  
Diego Matricano
Keyword(s):  
Competitive Advantage ◽  
Early Stage ◽  
High Growth ◽  
Knowledge Development ◽  
High Expectation ◽  
Knowledge Based ◽  
Start Up ◽  
New Knowledge ◽  
Start Ups

In markets characterized by strong competition, new knowledge and new knowledge development are generally recognized as the key means for an enterprise to gain competitive advantage. This knowledge-based competitive advantage is critical for all commercial ventures, but is especially so for high-expectation start-ups (technology-based ventures anticipating high growth rates). Even though the organizational processes of a start-up are still under development, the success of new knowledge development is affected by three critical factors – the structure of the enterprise, the organizational technology and the knowledge promoters. An analysis of these factors suggests that the role of the knowledge promoter is the key determinant of knowledge development success in the case of early-stage high-expectation start-ups.

scholarly journals Understanding the accelerator from resources-based perspective

2018 ◽  
Vol 12 (3) ◽  
pp. 258-278 ◽  
Author(s):  
Chul Hyun Uhm ◽  
Chang Soo Sung ◽  
Joo Yeon Park
Keyword(s):  
Early Stage ◽  
Point Of View ◽  
Success Rates ◽  
Access To Resources ◽  
Content Type ◽  
Study Approach ◽  
Start Up ◽  
The Usa ◽  
Start Ups

Purpose This study aims to explore Accelerators and their practices in sustaining start-ups within their innovative programs for these companies based on the resource-based perspective. Moreover, with an ever-increasing demand for Accelerators amongst start-up companies, this study also demonstrates the importance of Accelerators, as it pertains to new venture creation. Design/methodology/approach This research uses an exploratory case study approach to examine a comparative view of leading Accelerator companies in the USA and Korea based on resource support. Findings The results of this study show that there are a number of differences between Accelerators of the two countries in terms of the resources they support for early-stage start-ups. The findings also show some similarities. However, in Korea, the Accelerator landscape is limited, where mentorship, resources and investments are not readily accessible, resulting in low success rates for Korean start-up companies. These limitations have had a negative trickle-down effect when providing entrepreneurs with strong access to resources and investors, which highly affects the success rates of early-stage start-ups. Practical implications In terms of the resource-based theory, this study contributes to the growth of early start-ups by emphasizing the role of the accelerator and suggesting the extent and impact that entrepreneurs have access to resources and investors. Originality/value With significant growth in start-ups around the world, the necessity for start-up funding and mentorship has increased drastically. Start-up companies need various types of assets, systems, knowledge and information to achieve their goals. In Accelerators, start-ups receive all the aforementioned resources while also improving their entrepreneurial skills. Start-up companies have many options in seeking investors who support both tangible and intangible resources to boost growth. While there is a wealth of information on traditional funding methods, there are few studies that shed light on the role of Accelerators from the resource-based point of view.

scholarly journals Evaluation Framework on Start-up Incubator Business Model: What to Ask and How to Employ Data Management Tools (N-Vivo)

2020 ◽  
Vol 3 (4) ◽  
pp. 553-557
Author(s):  
Tifa Noer Amelia
Keyword(s):  
Data Management ◽  
Business Model ◽  
Developing Economies ◽  
Early Stage ◽  
Research Question ◽  
Evaluation Framework ◽  
Management Tools ◽  
Descriptive Research ◽  
Start Up ◽  
Start Ups

In recent years, developing economies countries such as Indonesia witnessing the growth of the incubator business for digital start-ups. Digital start-up is an early-stage business that requires to maintain its growth supported by the ecosystem. One of a prominent part in the ecosystem is a business incubator. This is descriptive research that aims to construct research question guideline and how to organize the gathered data using tools called Nvivo based on the provided evaluation framework.

scholarly journals Innovation Capabilities and the Performance of Start-Ups in Korea: The Role of Government Support Policies

2021 ◽  
Vol 13 (11) ◽  
pp. 6009
Author(s):  
Se-Kyoung Choi ◽  
Sangyun Han ◽  
Kyu-Tae Kwak
Keyword(s):  
Firm Performance ◽  
Financial Support ◽  
Political Support ◽  
Sustainable Growth ◽  
Government Support ◽  
Role Of Government ◽  
Positive Effects ◽  
Start Up ◽  
Start Ups

What kind of capacity is needed to improve the performance of start-ups? How effective are government support policies in improving start-up performance? Start-ups are critical firm group for ensuring the prospective and sustainable growth of an economy, and thus many countries’ governments have established support policies and they are likely to engage more widely in forward-looking political support activities to ensure further growth and expansion. In this paper, the effect of innovation capabilities and government support policies on start-up performance is examined. We used an unbalanced panel data analysis with a random effect generalized least squares. We investigated the effect of government support policies on 4368 Korean start-ups. The findings indicated that technology and knowledge capabilities had positive effects on the sales performance of start-ups, and government financial support positively affected the relationship between knowledge capability and firm performance. However, when government financial support increased, marketing capability was negatively associated with firm performance. These results demonstrate the significant role of government financial support, including its crowding in but also its crowding out effect. Practical implications: To be more effective, governments should employ innovation-driven entrepreneurship policy approaches to support start-ups. To improve their performance, start-ups need to increase their technology and knowledge capabilities. This study extends recent efforts to understand more fully the effect of government support policies on start-ups differing in their technology, knowledge, and marketing capabilities.

Fueling Spin-offs: Case Studies of University-based Technology Start-up Funding

2021 ◽  
Vol 22 (1) ◽  
pp. 29-40
Author(s):  
Julie Lenzer ◽  
Piotr Kulczakowicz
Keyword(s):  
Product Development ◽  
New Technologies ◽  
Early Stage ◽  
New Products ◽  
Academic Research ◽  
Real Life ◽  
Private Investment ◽  
Building Relationships ◽  
Start Up ◽  
Single Path

The new technologies born from academic research can be very promising, yet they are often very early stage. University spin-off companies are uniquely positioned to tackle the risks associated with new technologies emerging from academia by developing proofs of concept, functioning prototypes, and new products. While these enterprises start from a solid research and development foundation, they face their own unique set of challenges—they are strongly anchored in the scientific and technological expertise that is typically backed by intellectual property but often lack the business experience needed to develop and market products demanded by customers. University spin-offs have access to substantial non-dilutive funding that can be utilized for advancing product development. While the relentless pursuit of these funds builds a company's credibility and improves its position for negotiating future private investment, university spin-offs would greatly benefit from an early focus on complementing their technology teams with their business teams. These new enterprises should consider pursuing private investment in parallel to utilizing sources of non-dilutive funding. Timing of private investment is extremely important to maximize the value of the opportunity, and, therefore, building relationships with investors early on and getting ready for executing an investment round can greatly increase odds for success. While there is no single path to formulate, pursue, and adapt successful financing strategies, lessons can be learned from real-life cases of university spin-offs that continue their journeys towards ultimate success.

Service Logic Business Model Canvas for Lean Development of SMEs and Start-Ups

2020 ◽  
pp. 436-463
Author(s):  
Jukka Ojasalo ◽  
Katri Ojasalo
Keyword(s):  
Business Model ◽  
Business Models ◽  
Business Community ◽  
Service Development ◽  
Model Framework ◽  
Business Plans ◽  
Business Model Canvas ◽  
Start Up ◽  
Service Logic ◽  
Start Ups

Business models have made a breakthrough both in the academic and in business community in the area business development. Old fashioned business plans are in many cases considered as a waste of time and resources. Particularly start-ups and SMEs have a great potential to take advantage of business model approach which allows lean and agile product and service development. However, the existing widely used business model frameworks are lacking the new service logic orientation. They mostly see the world in terms of goods logic. Since all sizes of businesses in all industries are increasingly adopting the service logic or service-dominant logic, there was a clear need to develop a new service logic based business model framework. Based on an extensive empirical study with both practitioners and academics, a new Service Logic Business Model Canvas was developed to fill this need. This chapter explains the theoretical foundations of this framework in SME and start-up context, as well as the framework itself and its application.

Start-Ups and Spin-Offs in Biotechnology Sector in Poland

Biotechnology ◽  
2019 ◽  
pp. 1293-1321
Author(s):  
Anna Białek-Jaworska ◽  
Renata Gabryelczyk
Keyword(s):  
Business Models ◽  
Stock Exchange ◽  
Early Stage ◽  
Global Strategy ◽  
Third Party ◽  
Start Up ◽  
Warsaw Stock Exchange ◽  
Business Line ◽  
Definition Of ◽  
Start Ups

This chapter concerns the subject of research-developmental activity of biotech spin-offs in Poland with particular reference to their strategy, determinants of their development and determinants of their financial standing. In the chapter, the authors analyse the determinants of biotech spin-offs and start-ups development in Poland in the light of the research commercialisation cooperation on the universities-business line. The literature overview contains the definition of a process for the commercialisation of the results of research and development (R&D) activity and components of companies' business models. The chapter defines key activities in the development of business models in the context of the commercialisation process and the life cycle of the company, especially at the start up and early stage. Quality-quantitative analysis includes the business models of seven biotechnology spin-offs traded on the alternative market of the Warsaw Stock Exchange, especially the structure of their intellectual capital, R&D expenses in relation to received subsides and grants, third-party shares in start up equity, and the ability to realise the “Go Global” strategy.

scholarly journals The Business Model of Start-Up—Structure and Consequences

2019 ◽  
Vol 9 (3) ◽  
pp. 69 ◽  
Author(s):  
Štefan Slávik
Keyword(s):  
Business Model ◽  
Business Performance ◽  
Distribution Channel ◽  
Field Research ◽  
Lessons Learned ◽  
Entrepreneurial Performance ◽  
Start Up ◽  
Three Stages ◽  
Start Ups ◽  
The Impact

A start-up already at its origin has to solve the crucial existential condition that is a viable business model. The purpose of the research is to deepen and expand the knowledge about the structure of the start-up business model and its impact on entrepreneurial performance. Field research was carried out in three stages over one and a half years. The source of knowledge about the studied start-ups has been the personal experience recorded in the questionnaire. Start-ups are small closed communities that do not sufficiently shape external partnerships, cannot reach the customers, although they can identify them well enough, try to improve the business model blocks but they do not pay attention to their coordination and perceive the monetization in a simplified way. The impact of the business model on start-up performance has been confirmed but the internal blocks affect business performance unambiguously over the three stages of the research. The best conversion of users to customers and subsequently to revenues are distinctive for the start-ups with their own simple distribution channel and partners who are experienced distributors. The lessons learned can directly improve the results of start-ups when their incompleteness and imperfection will be substituted by appropriate partners. Start-ups provide a space for the new jobs and the self-realization of ambitious people with a sense of service for society. Empirical research on start-ups identifies their weaknesses and possibilities to increase their entrepreneurial performance.

scholarly journals The early growth of start-ups: innovation matters. Evidence from Italy

2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Raffaele Fiorentino ◽  
Sergio Longobardi ◽  
Alessandro Scaletti
Keyword(s):  
Propensity Score ◽  
Propensity Score Matching ◽  
Firm Growth ◽  
Ad Hoc ◽  
Early Stage ◽  
New Ventures ◽  
Objective Measure ◽  
Content Type ◽  
Start Up ◽  
Start Ups

PurposeDespite the relevance of innovation in entrepreneurship literature, empirical research on the innovation-performance relationship in start-ups is underdeveloped and shows controversial results. To bridge this gap, the aim of this paper is to investigate the role of innovativeness on new venture performance in the early stage of the life cycle.Design/methodology/approachRegression modelling and propensity score matching are used to reveal systematic differences in growth between innovative start-ups (ISUPs) and non-innovative start-ups. We use an ad hoc dataset obtained through merging the financial database AIDA with data from administrative sources (Italian Chambers of Commerce and the Italian Ministry for Economic Development).FindingsThe results show that differences in growth can be explained by the different levels of innovativeness in new ventures. Moreover, unlike in prior studies, the innovation inputs matter more than innovation outputs. Indeed, the results support the idea that innovation policies can contribute to maximising the potential of start-ups.Practical implicationsThe findings provide suggestions for policy makers and entrepreneurs to help firms configure ex ante appropriate actions to support the growth of new ventures in the start-up stage.Originality/valueThis study is the first to use the new objective measure of start-up innovation, available from the Italian LD 221 register. Second, different types of innovation are investigated as antecedents of firm growth. Third, we employ propensity score matching, which favours revealing systematic differences in growth between ISUPs and non-innovative start-ups. Fourth, the results of our study are the first to offer evidence on the effectiveness of the new Italian sustaining ISUPs policy.

Exploring the role of business relationships in start-ups’ life cycles

IMP Journal ◽  
2018 ◽  
Vol 12 (3) ◽  
pp. 519-543
Author(s):  
Chiara Cantù ◽  
Sepe Giorgia ◽  
Alessandra Tzannis
Keyword(s):  
Life Cycle ◽  
Secondary Data ◽  
Life Cycles ◽  
Business Relationships ◽  
Structured Interviews ◽  
Content Type ◽  
Strategic Resources ◽  
Start Up ◽  
Start Ups

Purpose Differently from previous works that focused on the entrepreneur and on his ability to manage social relationships, the purpose of this paper is to investigate the role of business relationships in the different stages of the life cycle of a start-up. Design/methodology/approach Since the paper aims to explore startups’ evolutionary phenomenon, it adopts a qualitative abductive methodology, presenting an in-depth study of two innovative Italian start-ups. The research is based on two steps. In the first one, the authors collected secondary data from start-ups’ reports and documents, financial indicators (when available) and processed them to understand their background. In the second one, the authors conducted ten semi-structured interviews, including face-to-face interviews, phone interviews and video conferences. Findings The paper presents a relationship-based life cycle model composed of four different stages, depending on the number and role of relationships developed. Indeed, since the beginning, start-ups adopt a relational approach and their evolution involves the shift from the focus on the entrepreneur to the centrality of a network approach based on interconnected relationships. The entering into a new stage of life cycle depends on relationships, mainly based on connected actors and resources shared and combined. Even if a key role is assumed by technology, the main resource is identified in the knowledge concerning the customer/user’s needs that require marketing competencies, human resources, relational capabilities. Thus, the shift from one stage to the next in the start-up’s life cycle is possible thanks to a parallel shift from a focus on the activities to a focus on those strategic and heterogeneous actors that ensure activities. Originality/value In a traditional perspective, the start-up’s life cycle depends on activities, financial resources and revenues, as stated by previous life cycle models. In a different perspective, as depicted in our analysis, the evolution of a start-up depends on the portfolio of their business relationships. The role of business relationships is hence to facilitate the interconnections within specialized key actors, which allow start-ups to access strategic resources. These resources are essential in order to develop the activities that characterize the specific stage of the life cycle.

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