Early-stage fundraising of university spin-offs: a study through demand-site perspectives

Figures & data

Figure 1. Conceptual model.

Table 1. First-order CFA of the social network model.

Paths	Loadings	CR	AVE
Network structure →		0.7678	0.5249
Density	0.756**
Centrality	0.739**
Ties	0.676**
Network governance →		0.7776	0.5416
Reputation	0.621**
Reciprocity	0.829**
Trust	0.743**
Network content →		0.7219	0.5650
Information quality	0.736**
Information diversity	0.767**

Notes: Model fit (CMIN/DF = 1.416, RMSEA = 0.048, NFI = 0.946, CFI = 0.980, GFI = 0.961).

^** Loading significant at the 0.01 level.

Table 2. First-order CFA of the measurement model.

Paths	Loadings	CR	AVE
Social network →		0.9196	0.7930
Structure	0.904**
Governance	0.799**
Content	0.961**
Capability →		0.8436	0.5292
Technology	0.682**
Organizational viability	0.821**
Human capital	0.520**
Strategy	0.915**
Commercial resource	0.725**
Early-stage financing →		0.8894	0.8027
Follow-on investors	0.989**
Potential investors	0.792**

Notes: Model fit (CMIN/DF = 1.186, RMSEA = 0.032, NFI = 0.940, CFI = 0.990, GFI = 0.945).

^** Loading significant at the 0.01 level.

Figure 2. Result model (**p < 0.01; *p < 0.05, all error terms omitted for clarity).

Table 3. Path analysis results: direct and indirect effects.

Paths	Standardized direct effects	Standardized indirect effects
Social network ↔ capability	0.198**
Social network → early-stage fundraising	0.166
Capability → early-stage fundraising	0.184*
Social network → early-stage fundraising		0.067
Social network → existing investors		0.067
Social network → potential investors		0.071
Capability → follow-on investors		0.184**
Capability → new investors		0.196**
Social network → entrepreneurial technology		0.265**
Social network → organizational viability		0.320**
Social network → human capital		0.185**
Social network → strategy		0.362**
Social network → commercial resource		0.362**
Control
Within incubator → early-stage financing	0.191

^* p < 0.05

^** p < 0.01; two tailed significance.

Figure 3. Optimal model (All estimates are significant at the 0.01 level; all error terms omitted for clarity; Model Fit: CMIN/DF = 1.337, RMSEA = 0.043, NFI = 0.930, CFI = 0.981, and GFI = 0.936).

Table

Measures		First order loadings	Second order loadings
Structure
Density			0.769**
	Knowing each other by name	0.688**
	Talking to each other about business	0.941**
	Seeing each other regularly in business situations	0.933**
Centrality			0.797**
	We talked directly about business issues	0.67**
	We received directly helpful business information	0.712**
	We could call for advice about running our business	0.697**
	We were the first to receive new things in the group	0.781**
Ties			0.681*
	We would share personal matters with them	0.663**
	We might discuss family matters with them	0.917**
	We might ask them for advice about private matter	0.832**
Governance
Reputation			0.627**
	We generated a lot of enthusiasm	0.711**
	We had a forgiving nature	0.604**
	We persevered until the task is finished	0.742**
	We liked to play with ideas	0.775**
Reciprocity			0.755**
	People were generally pair in dealings with us	0.759**
	People were willing to do us a favour if asked	0.598**
	We did favours for each other from time to time	0.762**
	People patronized my business	0.87**
Trust			0.826**
	We were dependable by these people	0.888**
	People would say that we are sincere	0.917**
	They would say that we are trustworthy	0.604**
Content
Infor. Quality	Their information was usually accurate	0.878**
	Their information was relevant	0.916**
	Their information was specific	0.859**
	I quickly received their information	0.777**
Diversity Infor. (information used to be exchanged)	Market data	0.782**
	Product design	0.913**
	Process design	0.854**
	Marketing know-how	0.75**
	Packaging design/technology	0.744**

Table

Measures		First order loadings	Second order loadings
Technology			0.685**
	Hard to make a substitute for the technology	0.686**
	Our products might replace numerous existing one	0.78**
	Might replace other technologies in the industry	0.729**
	Potential to generate large economic returns	0.778**
	A platform for variety of commercial applications	0.598**
	Developed products with considerable demand in market	0.752**
Organizational viability			0.743**
	Team members were encouraged to improve working method	0.772**
	Team members had power to make decisions	0.770**
	Rewards and reinforcement were used	0.690**
	Individuals had time to incubate innovative ideas	0.600**
	Training in working techniques and attitudes was major emphasis	0.729**
Human capital			0.531**
	Good working experience	0.605**
	Good business management knowledge	0.767**
	Good industrial experience	0.712**
	Good entrepreneurial experience	0.856**
Strategy-making			0.923**
	Strong emphasis on R&D, technological leadership, and innovation	0.711**
	The first to introduce new products and services, administrative technologies, etc.	0.793**
	Strong tendency to be ahead of other competitors in introducing novel ideals and products	0.751**
	Strong tendency for high-risk projects with chances of very high returns	0.616**
Commercial resource			0.685**
	Building long-term customer relationships	0.605**
	Good plan to redesign management process	0.767**
	Good plan to redesign marketing and sales process	0.712**
	Focusing on customer satisfaction	0.895**

Table

Measures		First order loadings	Second order loadings
Follow-on investors
	Private investors/ angels	0.767**
	Venture capital	0.784**
	Government grants	0.693**
	Strategic partners	0.627**
New investors
	Initial public offering	0.741**
	Employees	0.685**
	Customers	0.711**

Table

	Construct Reliability (CR)	Composite Reliability ^a	Average Variance Extracted (AVE)	Squared Interconstruct Correlation (SIC)
Social Network
Structure	0.7940		0.5634
Density	0.8949	0.888	0.7431	0.0751; 0.2025
Centrality	0.8076	0.736	0.5129	0.1475; 0.2052
Ties	0.8499	0.840	0.6576	0.0751; 0.1475
Governance	0.7825		0.5485
Reputation	0.8020	0.632	0.5054	0.1043; 0.1246
Reciprocity	0.8379	0.850	0.5678	0.1043; 0.3894
Trust	0.8523	0.879	0.6647	0.1246; 0.3894
Content	0.7220		0.5650
Infor. Quality	0.9182	0.926	0.7379	0.2767
Diversity infor.	0.9053	0.922	0.6580	0.2767
Capability	0.8427		0.5249
Technology	0.8668	0.839	0.5221	0.3204; 0.2927
Organizational viability	0.8384	0.794	0.5113	0.1069; 0.5083
Human capital	0.8279	0.808	0.5498	0.0320; 0.1069
Strategy	0.8109	0.702	0.5195	0.0600; 0.5083
Commercial resource	0.8135	0.708	0.5226	0.0841; 0.3881
Early-stage Fundraising
Follow-on investors	0.8108	0.724	0.5191	0.4045
New investors	0.7557	0.668	0.5079	0.4045

Table

	Variables
	1	2	3	4	5	6	7	8	9	10	11	12	13	14	15
(1) Density
(2) Centrality	.503**
(3) Ties	.294**	.445**
(4) Reputation	.087	.344**	.110
(5) Reciprocity	.297**	.643**	.351**	.400**
(6) Trust	.279**	.612**	.254**	.410**	.677**
(7) Info quality	.353**	.652**	.417**	.279**	.692**	.395**
(8) Info diversity	.371**	.496**	.517**	.036	449**	.318**	.564**
(9) Entrepreneur technology	.042	.161*	.109	.082	.182*	.171*	.149*	.215**
(10) Organizational viability	.070	.289**	.189*	.254**	.268**	.270**	.314**	.272**	.388**
(11) Human capital	.028	.156*	.150*	.136	.162*	.162*	.070	.201**	.190*	.393**
(12) Strategy	.050	.225**	.155*	.217**	.193**	.241**	.211**	.256**	.589**	.835**	.289**
(13) Commercial resource	.123	.160*	.035	.215**	.120	.134	.158*	197**	.553**	.558**	.333**	.729**
(14) Follow-on investors	.011	.167*	.012	−.024	.198**	.170*	.119	.119	.154*	.160*	.027	.186*	.154*
(15) New investors	.023	.108	−.006	.003	.119	.145	.095	.055	.178*	.106	−.061	.159*	.095	.784**
Mean	4.03	4.83	3.51	3.53	5.82	5.68	4.03	3.45	5.58	5.76	5.10	5.14	5.63	2.01	2.39
SD	1.77	.89	1.63	.36	.89	.69	1.01	1.27	1.13	.97	1.50	.90	1.25	.93	1.15
Min	.30	1.95	1.08	2.25	2.82	2.74	.83	.82	1.77	2.43	1.66	1.67	1.63	.89	1.00
Max	6.78	6.13	6.14	4.08	7.05	6.39	5.74	6.69	7.32	7.53	8.25	6.81	8.06	4.41	5.44