CAN BUSINESS MODEL COMPONENTS EXPLAIN DIGITAL START-UP SUCCESS? A Qualitative Analysis of the Business Models of Start-ups from the Perspective of German Venture Investors

Nina Schumacher ()
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Nina Schumacher: State University, Leuphana University of Lüneburg, Lüneburg, Germany

Economic Thought and Practice, 2022, vol. 31, issue 1, 81-98

Abstract: This study explores the success relevance of business model components of digital start-ups from the perspective of German venture capital (VC) investors. In doing so, the study explains the importance of the business model in general and the importance of a convincing value proposition and a plausible revenue model in particular for the investment decision process of VC investors. The study takes an exploratory three-dimensional research approach that integrates the meso-perspective on the business model, the micro-perspective on the entrepreneurial personality, and the macro-perspective on the entrepreneurial context, thus operating in a very young research field. In contrast to most studies on this topic, this paper shows that the business model is not the key resource for the success of a start-up, while an early concept of a business idea might be. Communication and interaction with VC investors at this early stage can be valuable tools for the continuous development of the initial business idea.

Keywords: Start-up Success; Entrepreneurship; Business model; Venture capital investors; Value Proposition; Revenue Model; Digital Start-up (search for similar items in EconPapers)
JEL-codes: G24 G32 L26 M13 (search for similar items in EconPapers)
Date: 2022
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DOI: 10.17818/EMIP/2022/1.4

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