Unlocking funding success: intercultural entrepreneurship dynamics in European startups

Francesco Martielli (), Vittorio Laus (), Antonio Salvi () and Anna Kotaskova ()
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Francesco Martielli: University of Turin
Vittorio Laus: University of Turin
Antonio Salvi: University of Turin
Anna Kotaskova: Pan-European University of Bratislava

International Entrepreneurship and Management Journal, 2025, vol. 21, issue 1, No 19, 31 pages

Abstract: Abstract Within the dynamic landscape of international entrepreneurship and startup ecosystems, it is crucial to understand the factors that influence the ability of innovative startups’ in raising funds. This paper investigates the interplay between cultural characteristics, interculturality, and startup early-stage fundraising outcomes. The study leverages a dataset comprising 104 European innovative startups in pre-seed and seed stages sourced from Crunchbase. Employing a regression model, the authors establish a significant link between the value of equity raised, the number of investors, and cultural proxies within startup environments. Specifically, the focus lies on the cultural traits of startup founders, which significantly impact investment decisions. Findings reveal a strong correlation between a startup’s funding success and the support of investors, and this correlation is amplified when founders exhibit specific intercultural traits and draw from prior work experiences. These insights have far-reaching implications for researchers, practitioners, and policymakers seeking to unravel the intricacies of fundraising in an intercultural context. The paper uniquely examines how cultural factors shape the fundraising journey across short-term and long-term perspectives. By delving into the intercultural characteristics of founders, it sheds light on the decision-making processes of investors. It also offers important insights for startuppers, particularly in their strategic approach to fundraising. Ultimately, this research rejuvenates our understanding of international entrepreneurship and the global startup ecosystem.

Keywords: International Entrepreneurship; Signaling theory; Interculturality; Founders; Startup (search for similar items in EconPapers)
Date: 2025
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DOI: 10.1007/s11365-024-01038-5

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