Startup ventures and equity finance: How do Business Accelerators and Business Angels’ assess the human capital of socio-environmental mission led entrepreneurs?

References

• Ahlers, G. K., Cumming, D., Günther, C., & Schweizer, D. (2015). Signalling in equity crowdfunding. Entrepreneurship Theory and Practice, 39(4), 955–980. https://doi.org/10.1111/etap.12157
   Web of Science ®Google Scholar
• Åstebro, T., & Bernhardt, I. (2003). Start-up financing, owner characteristics, and survival. Journal of Economics and Business, 55(4), 303–319. https://doi.org/10.1016/S0148-6195(03)00029-8
   Google Scholar
• Baldock, R., & Mason, C. (2015). Establishing a new UK finance escalator for innovative SMEs: The roles of the Enterprise Capital Funds and Angel Co-Investment Fund. Venture Capital, 17(1–2), 59–86. https://doi.org/10.1080/13691066.2015.1021025
   Web of Science ®Google Scholar
• Baldock, R., & North, D. (2015). The role of UK government hybrid venture capital funds in addressing the finance gap facing innovative SMEs in the post-(2007) financial crisis era. Handbook on Entrepreneurial Finance (pp. 125–146). https://doi.org/10.4337/9781783478798
   Google Scholar
• Baldock, R. (2016). An assessment of the business impacts of the UK’s Enterprise Capital Funds. Environment and Planning C: Government and Policy, 34(8), 1556–1581. https://doi.org/10.1177/0263774X15625995
   Google Scholar
• Barney, J. (1991). Firm resources and sustained competitive advantage. Journal of Management, 17(1), 99–120. https://doi.org/10.1177/014920639101700108
   Web of Science ®Google Scholar
• Baum, J. A., Calabrese, T., & Silverman, B. S. (2000). Don’t go it alone: Alliance network composition and startups’ performance in Canadian biotechnology. Strategic Management Journal, 21(3), 267–294. h ttps://d oi.org/1 0.1002/(SICI)1097-0266(200003)21:3<267::AID-SMJ89>3.0.CO;2-8
   Web of Science ®Google Scholar
• BBB. (2018). The UK Business Angel Market, Report by British Business Bank. June.
   Google Scholar
• Blank, T. H., & Carmeli, A. (2020). Does founding team composition influence external investment? The role of founding team prior experience and founder CEO. The Journal of Technology Transfer, 46(6), 1869–1888.
   Web of Science ®Google Scholar
• Bloom, P. N., & Clark, C. H. (2011). The challenges of creating databases to support rigorous research in social entrepreneurship. In Center for the Advancement of Social Entrepreneurship, Fuqua School of Business Duke University Durham, NC.
   Google Scholar
• Bone, J., Allen, O., & Haley, C. (2017). Business Incubators and Accelerators the National Picture. In UK Department for Business, Energy and Industrial Strategy research paper no. 7 Crown Copyright. London.
   Google Scholar
• Bone, J., Gonzalez-Uribe, J., Haley, C., & Lahr, H. (2019). The impact of business accelerators and incubators in the UK. Department for Business, Energy & Industrial Strategy.
   Google Scholar
• Bonini, S., & Capizzi, V. (2019). The role of venture capital in the emerging entrepreneurial finance ecosystem: Future threats and opportunities. Venture Capital, 21(2–3), 137–175. https://doi.org/10.1080/13691066.2019.1608697
   Web of Science ®Google Scholar
• Brown, R., & Mason, C. (2014). Inside the high-tech black box: A critique of technology entrepreneurship policy. Technovation, 34(12), 773–784. https://doi.org/10.1016/j.technovation.2014.07.013
   Web of Science ®Google Scholar
• Brown, R., & Mason, C. (2017). Looking inside the spiky bits: A critical review and conceptualisation of entrepreneurial ecosystems. Small Business Economics, 49(1), 11–30. https://doi.org/10.1007/s11187-017-9865-7
   Web of Science ®Google Scholar
• Brown, R., & Rocha, A. (2020). Entrepreneurial uncertainty during the Covid-19 crisis: Mapping the temporal dynamics of entrepreneurial finance. Journal of Business Venturing Insights, 14, e00174. https://doi.org/10.1016/j.jbvi.2020.e00174
   Google Scholar
• Brunet, S., Grof, M., & Izquierdo, D., (2016). European Accelerator Report (2015).
   Google Scholar
• Carter, S., Ram, M., Trehan, K., & Jones, T. (2013) Diversity and SMEs. ERC White Paper No. 3, Enterprise Research Centre, Warwick University.
   Google Scholar
• Chang, C. (2013). Portfolio company selection criteria: Accelerators vs venture capitalists. Claremont College.
   Google Scholar
• Clarysse, B., Wright, M., & Hove, J. V. (2016). A look inside accelerators in the United Kingdom: Building technology businesses. In Technology Entrepreneurship and Business Incubation: Theory• Practice• Lessons Learned (pp. 57–86). World Scientific 2016.
   Google Scholar
• Colombo, M. G., & Grilli, L. (2005). Founders’ human capital and the growth of new technology-based firms: A competence-based view. Research Policy, 34(6), 795–816. https://doi.org/10.1016/j.respol.2005.03.010
   Web of Science ®Google Scholar
• Colombo, O. (2021). The use of signals in new-venture financing: A review and research agenda. Journal of Management, 47(1), 237–259. https://doi.org/10.1177/0149206320911090
   Web of Science ®Google Scholar
• Cumming, D., Deloof, M., Manigart, S., & Wright, M. (2019). New directions in entrepreneurial finance. Journal of Banking & Finance, 100, 252–260. https://doi.org/10.1016/j.jbankfin.2019.02.008
   Web of Science ®Google Scholar
• Dabić, M., Vlačić, B., Kiessling, T., Caputo, A., & Pellegrini, M. (2021). Serial entrepreneurs: A review of literature and guidance for future research. Journal of Small Business Management, 1–36. https://doi.org/10.1080/00472778.2021.1969657
   Web of Science ®Google Scholar
• Dahl, M. S., & Reichstein, T. O. K. E., (2006). August. Heritage and survival of spin-offs: Quality of parents and parent-tenure of founders. In Academy of Management Conference.
   Google Scholar
• Dahl, M. S., & Reichstein, T. (2007). Are you experienced? Prior experience and the survival of new organizations. Industry and Innovation, 14(5), 497–511. https://doi.org/10.1080/13662710701711414
   Google Scholar
• Delmar, F., & Shane, S. (2006). Does experience matter? The effect of founding team experience on the survival and sales of newly founded ventures. Strategic Organization, 4(3), 215–247. https://doi.org/10.1177/1476127006066596
   Google Scholar
• Ding, W. W. (2011). The impact of founders’ professional-education background on the adoption of open science by for-profit biotechnology firms. Management Science, 57(2), 257–273. https://doi.org/10.1287/mnsc.1100.1278
   Web of Science ®Google Scholar
• Doherty, B., Haugh, H., & Lyon, F. (2014). Social enterprises as hybrid organizations: A review and research agenda. International Journal of Management Reviews, 16(4), 417–436. https://doi.org/10.1111/ijmr.12028
   Web of Science ®Google Scholar
• Eckhardt, J. T., Shane, S., & Delmar, F. (2006). Multistage selection and the financing of new ventures. Management Science, 52(2), 220–232. https://doi.org/10.1287/mnsc.1050.0478
   Web of Science ®Google Scholar
• Ferrati, F., & Muffatto, M. (2021). Reviewing equity investors’ funding criteria: A comprehensive classification and research agenda. Venture Capital, 23(2), 157–178. https://doi.org/10.1080/13691066.2021.1883211
   Web of Science ®Google Scholar
• Fisher, G., & Kotha, S. (2015). Entrepreneurial Identity and Resource Acquisition: The Role of Venture Identification. In Oxford Handbook on Creativity, Innovation and Entrepreneurship. Oxford University Press.
   Google Scholar
• Fisher, G., Kuratko, D. F., Bloodgood, J. M., & Hornsby, J. S. (2017). Legitimate to whom? The challenge of audience diversity and new venture legitimacy. Journal of Business Venturing, 32(1), 52–71. https://doi.org/10.1016/j.jbusvent.2016.10.005
   Web of Science ®Google Scholar
• GIIN (2020). Global Impact Investing Network, accessed 15 April (2020), https://thegiin.org/impact-investing/need-to-know/#what-is-impact-investing
   Google Scholar
• Gombers, P. A., Gornall, W., Kaplan, S. N- & Strebulaev, I. A. (2020). How do venture capitalists make decisions? Journal of Financial Economics, 135(1), 169–190.
   Web of Science ®Google Scholar
• Gonzalez-Uribe, J., & Leatherbee, M. (2017). The effects of business accelerators on venture performance: Evidence from start-up Chile. The Review of Financial Studies, 31(4), 1566–1603. https://doi.org/10.1093/rfs/hhx103
   Web of Science ®Google Scholar
• Granz, C., Lutz, E., & Henn, M. (2021). Scout or coach? Value-added services as selection criteria in entrepreneurs’ venture capitalist selection. Venture Capital, 23(1), 5–40. https://doi.org/10.1080/13691066.2020.1824603
   Web of Science ®Google Scholar
• Greene, W. H. (1993). Econometric Analysis (fifth ed.). Prentice Hall, New Jersey.
   Google Scholar
• Greene, W. H. (1997). Econometric analysis 3rd edition. In New Yersey: Prentice-Hall International.
   Google Scholar
• Haines, G. H., Jr, Madill, J. J., & Riding, A. R. (2003). Informal Investment in Canada: Financing Small Business Growth. Journal of Small Business and Entrepreneurship, 16(3–4), 13–40. https://doi.org/10.1080/08276331.2003.10593306
   Google Scholar
• Harrison, R. T., & Mason, C. M. (2017). Backing the horse or the jockey? Due diligence, agency costs, information and the evaluation of risk by business angel investors. International Review of Entrepreneurship, 15(3), 269–290.
   Web of Science ®Google Scholar
• Hathaway, I. (2016). What startup accelerators really do. Harvard Business Review. https://hbr.org/(2016)/03/whatstartup-accelerators-really-do. Accessed January 12, (2017)
   Google Scholar
• Hausman, J. A. (1978). Specification tests in econometrics. Econometrica: Journal of the Econometric Society, 46(6), 1251–1271. https://doi.org/10.2307/1913827
   Web of Science ®Google Scholar
• Hayton, J. C. (2005). Competing in the new economy: The effect of intellectual capital on corporate entrepreneurship in high‐technology new ventures. R&D Management, 35(2), 137–155. https://doi.org/10.1111/j.1467-9310.2005.00379.x
   Web of Science ®Google Scholar
• Heckman, J. J., & Robb, R. (1985). Alternative methods for evaluating the impact of interventions: An overview. Journal of Econometrics, 30(1), 239–267. https://doi.org/10.1016/0304-4076(85)90139-3
   Web of Science ®Google Scholar
• Heckman, J. J. (1979). Sample selection bias as a specification error. Econometrica, 47(1), 153–161. https://doi.org/10.2307/1912352
   Web of Science ®Google Scholar
• Henry, M., Bauwens, T., Hekkert, M., & Kirchherr, J. (2020). A typology of circular start-ups: An Analysis of 128 circular business models. Journal of Cleaner Production, 245, 118528. https://doi.org/10.1016/j.jclepro.2019.118528
   Web of Science ®Google Scholar
• Hogan, T., Hutson, E., & Drnevich, P. (2017). Drivers of External Equity Funding in Small High‐Tech Ventures. Journal of Small Business Management, 55(2), 236–253. https://doi.org/10.1111/jsbm.12270
   Web of Science ®Google Scholar
• Howell, S. T., Lerner, J., Nanda, R., & Townsend, R. R. (2020). Financial distancing: How venture capital follows the economy down and curtails innovation (No. w27150). National Bureau of Economic Research.
   Google Scholar
• Hsu, D. H. (2007). Experienced entrepreneurial founders, organizational capital, and venture capital funding. Research Policy, 36(5), 722–741. https://doi.org/10.1016/j.respol.2007.02.022
   Web of Science ®Google Scholar
• Ingham, E. (2014). Over Crowded Funding: Is the Accelerator Bubble About to Burst? Forbes blog, posted 18/08/14, accessed 21/November/2017, https://www.forbes.com/sites/edmundingham/(2014)/08/18/over-crowded-funding-is-the-accelerator-bubble-about-to-burst/2/#460c07a67b6f
   Google Scholar
• Islam, M., Fremeth, A., & Marcus, A. (2018). Signaling by early stage startups: US government research grants and venture capital funding. Journal of Business Venturing, 33(1), 35–51. https://doi.org/10.1016/j.jbusvent.2017.10.001
   Web of Science ®Google Scholar
• Jo, H., & Lee, J. (1996). The relationship between an entrepreneur’s background and performance in a new venture. Technovation, 16(4), 161–211. https://doi.org/10.1016/0166-4972(96)89124-3
   Web of Science ®Google Scholar
• Ko, E.-J., & McKelvie, A. (2018). Signaling for more money: The roles of founders’ human capital and investor prominence in resource acquisition across different stages of firm development. Journal of Business Venturing, 33(4), 438–454. https://doi.org/10.1016/j.jbusvent.2018.03.001
   Web of Science ®Google Scholar
• Lerner, J. (2010). The future of public efforts to boost entrepreneurship and venture capital. Small Business Economics, 35(3), 255–264. https://doi.org/10.1007/s11187-010-9298-z
   Web of Science ®Google Scholar
• Li, X., & Owen, R., (2016). The role of trust in influencing the equity crowdfunding platform development path: An exploratory study of AngelCrunch in China. Paper to the Institute of Small Business and Entrepreneurship, Paris 10–11th November
   Google Scholar
• Long, S. J. (1997). Regression Models for Categorical and Limited Dependent Variables. Sage.
   Google Scholar
• Lyon, F., & Owen, R. (2019). Financing Social Enterprise and the Demand for Social Investment. forthcoming. Strategic Change: Briefings in Entrepreneurial Finance.
   Google Scholar
• Mac An Bhaird, C. (2010). The Modigliani–Miller proposition after fifty years and its relation to entrepreneurial finance. Strategic Change, 19(1‐2), 9–28. https://doi.org/10.1002/jsc.855
   Google Scholar
• Madaleno, M., Nathan, M., Overman, H., & Waights, S. (2021). Incubators, accelerators and urban economic development. In Urban Studies (pp. 00420980211004209).
   Google Scholar
• Maier, L., Sandner, P., & Geibel, R. (2016). Characterizing business angels and investigating the impact of their human capital on startup success. In Proceesings of 6th Annual International Conference on Innovation and Entrepreneurshup (IE 2016), Singapore (pp. 64–70).
   Google Scholar
• Markowitz, H. (1952). Portfolio selection. The Journal of Finance, 7(1), 77–91.
   Web of Science ®Google Scholar
• Mason, C. M., & Harrison, R. T. (2015). Business angel investment activity in the financial crisis: UK evidence and policy implications. Environment and Planning C: Government and Policy, 33(1), 43–60. https://doi.org/10.1068/c12324b
   Web of Science ®Google Scholar
• Mason, C., Botelho, T., & Zygmunt, J. (2017). Why business angels reject investment opportunities: Is it personal? International Small Business Journal, 35(5), 519–534. https://doi.org/10.1177/0266242616646622
   Web of Science ®Google Scholar
• Mason, C., & Botelho, T. (2014). The (2014) survey of business angel investing in the UK: A changing market place. Adam Smith Business School, University of Glasgow.
   Google Scholar
• Mason, C., & Rogers, A. (1996). Understanding the business angel’s investment deciion. Univ. Southampton., Department of Geography.
   Google Scholar
• Mian, S., Lamine, W., & Fayolle, A. (2016). Technology Business Incubation: An overview of the state of knowledge. Technovation, 50, 1–12. https://doi.org/10.1016/j.technovation.2016.02.005
   Web of Science ®Google Scholar
• Miller, P., & Bound, K. (2011). The Startup Factories: The rise of accelerator programmes to support new technology ventures. Nesta.
   Google Scholar
• Murray, G. (2021). Ten meditations on government venture capital. Venture Capital, 1–23.
   Web of Science ®Google Scholar
• Newbert, S. L., Kirchhoff, B. A., & Walsh, S. T. (2007). Defining the Relationship among Founding Resources, Strategies, and Performance in Technology‐Intensive New Ventures: Evidence from the Semiconductor Silicon Industry. Journal of Small Business Management, 45(4), 438–466. https://doi.org/10.1111/j.1540-627X.2007.00222.x
   Web of Science ®Google Scholar
• North, D., Baldock, R., & Ullah, F. (2013). Funding the growth of UK technology-based small firms since the financial crash: Are there breakages in the finance escalator? Venture Capital, 15(3), 237–260. https://doi.org/10.1080/13691066.2013.804755
   Google Scholar
• Owen, R., Botelho, T., & Anwar, O., (2017), Exploring the Success and Barriers to SME finance and its potential role in achieving Growth. Enterprise Research Centre (ERC) Research Paper No. 53, January
   Google Scholar
• Owen, R., Deakins, D., & Savic, M. (2019). Financing pathways for young innovative small- and medium-size enterprises: A demand-side examination of finance gaps and policy implications for the post global financial crisis finance escalator. Strategic Change Briefings in Entrepreneurial Finance, 28(1), 19–36.
   Web of Science ®Google Scholar
• Owen, R., Harrer, T., Lodh, S., Pates, R., & Mair, S. (2020a). Redefining SME Productivity Measurement and Assessment for a Low Carbon Economy.
   Google Scholar
• Owen, R., Lehner, O., Lyon, F., & Brennan, G. (2020). Early stage investing in green SMEs. ACRN Journal of Finance and Risk Perspectives, 8(1), 163–182. https://doi.org/10.35944/jofrp.2019.8.1.011
   Google Scholar
• Owen, R., & Mason, C. (2017). The role of government co-investment funds in the supply of entrepreneurial finance: An assessment of the early operation of the UK Angel Co-investment Fund. Environment and Planning C: Politics and Space, 35(3), 434–456.
   Web of Science ®Google Scholar
• Owen, R., North, D., & Mac An Bhaird, C. (2019a). The role of government venture capital funds: Recent lessons from the UK experience. Strategic Change, 28(1), 69–82. https://doi.org/10.1002/jsc.2247
   Google Scholar
• Owen, R. (2021). Lessons from government venture capital funds to enable transition to a low-carbon economy: The UK case. IEEE Transactions on Engineering Management, 1–15. https://doi.org/10.1109/TEM.2021.3094992
   Web of Science ®Google Scholar
• Pahnke, E. C., Katila, R., & Eisenhardt, K. M. (2015). Who takes you to the dance? How Partners’ Institutional Logics Influence Innovation in Young Firms. Administrative Science Quarterly, 60(4), 596–633. https://doi.org/10.1177/0001839215592913
   Web of Science ®Google Scholar
• Pauwels, C., Clarysse, B., Wright, M., & Van Hove, J. (2016). Understanding a new generation incubation model: The accelerator. Technovation, 50, 13–24. https://doi.org/10.1016/j.technovation.2015.09.003
   Web of Science ®Google Scholar
• Rosa, P., Carter, S., & Hamilton, D. (1996). Gender as a determinant of small business performance: Insights from a British study. Small Business Economics, 8(6), 463–478. https://doi.org/10.1007/BF00390031
   Web of Science ®Google Scholar
• Sá, C., & Lee, H. (2012). Science, business, and innovation: Understanding networks in technology‐based incubators. R&D Management, 42(3), 243–253. https://doi.org/10.1111/j.1467-9310.2012.00681.x
   Web of Science ®Google Scholar
• Sinha, K. K., & Isyevskyy, O. (2018). The impact of founding team’s human capital on mean and variability of new venture growth. In Academy of management proceedings (Vol. 2018, No 1, p`. 11516). Briarcliff Manor, NY: Academy of Management.
   Google Scholar
• Stayton, J., & Mangematin, V. (2019). Seed accelerators and the speed of new venture creation. The Journal of Technology Transfer, 44(4), 1163–1187. https://doi.org/10.1007/s10961-017-9646-0
   Web of Science ®Google Scholar
• Teasdale, S., Lyon, F., & Baldock, R. (2013). Playing with numbers: A methodological critique of the social enterprise growth myth. Journal of Social Entrepreneurship, 4(2), 113–131. https://doi.org/10.1080/19420676.2012.762800
   Google Scholar
• Ucbasaran, D., Westhead, P., & Wright, M. (2008). Opportunity identification and pursuit: Does an entrepreneur’s human capital matter? Small Business Economics, 30(2), 153–173. https://doi.org/10.1007/s11187-006-9020-3
   Web of Science ®Google Scholar
• Uzzi, B. (1999). Embeddedness in the making of financial capital: How social relations and networks benefit firms seeking financing. American Sociological Review, 64(4), 481–505. https://doi.org/10.2307/2657252
   Web of Science ®Google Scholar
• Van Osnabrugge, M., & Robinson, R. J. (2000). Angel Investing: Matching Start-Up Funds With Start-Up Companies. Jossey Bass.
   Google Scholar
• Van Osnabrugge, M. (2000). A comparison of business angel and venture capitalist investment procedures: An agency theory-based analysis. Venture Capital: An International Journal of Entrepreneurial Finance, 2(2), 91–109. https://doi.org/10.1080/136910600295729
   Google Scholar
• Wallmeroth, J., Wirtz, P., & Groh, A. P. (2018). Venture capital, angel financing, and crowdfunding of entrepreneurial ventures: A literature review. Foundations and Trends® in Entrepreneurship, 14(1), 1–129. https://doi.org/10.1561/0300000066
   Web of Science ®Google Scholar
• Wang, T., Qureshi, I., Deeds, D., & Ren, Y. (2019). How do technology ventures signal IPO quality? A configurational approach. Journal of Business Research, 99, 105–114. https://doi.org/10.1016/j.jbusres.2019.01.039
   Web of Science ®Google Scholar
• Watson, W., Steward, W., & BarNir, A. (2003). The effects of human capital, organizational demography, and interpersonal processes on venture partner perceptions of firm profit and growth. J. Bus. Venturing, 18(2), 145–164. https://doi.org/10.1016/S0883-9026(01)00082-9
   Web of Science ®Google Scholar
• Wiltbank, R. E. (2009). Siding with the Angels: Business Angel investing-promising outcomes and effective strategies. NESTA.
   Google Scholar
• Winston-Smith, S. W., & Hannigan, T. J., (2015). Swinging for the fences: How do top accelerators impact the trajectories of new ventures. DRUID1. Rome. http://druid8.sit.aau.dk/druid/acc_papers/5ntuo6s1r5dvrpf032x24x5on5lq.pdf.
   Google Scholar
• Wong, A., Bhatia, M., & Freeman, Z. (2009). Angel finance: The other venture capital. Strategic Change, 18(7–8), 221–230. https://doi.org/10.1002/jsc.849
   Google Scholar
• Woolley, J. L. (2019). Gender, education, and occupation: How founder experiences influence firm outcomes. Academy of Management Discoveries, 5(3), 266–290. https://doi.org/10.5465/amd.2017.0069
   Web of Science ®Google Scholar
• World Bank (2014). Expanding women’s Access to Financial Services, http://www.worldbank.org/en/results/(2013)/04/01/banking-on-women-extending-womens-access-to-financial-services
   Google Scholar
• Yan, S., Ferraro, F., & Almandoz, J. (2019). The rise of socially responsible investment funds: The paradoxical role of the financial logic. Administrative Science Quarterly, 64(2), 466–501. https://doi.org/10.1177/0001839218773324
   Web of Science ®Google Scholar
• Yin, B., & Luo, J. (2018). How do accelerators select startups? Shifting decision criteria across stages. IEEE Transactions on Engineering Management, 65(4), 574–589. https://doi.org/10.1109/TEM.2018.2791501
   Web of Science ®Google Scholar