EconPapers    
Economics at your fingertips  
 

Exploring the differences in early-stage start-up valuation across countries: an institutional perspective

Elisabeth S.C. Berger () and Andreas Köhn ()
Additional contact information
Elisabeth S.C. Berger: University of Hohenheim
Andreas Köhn: University of Hohenheim

International Entrepreneurship and Management Journal, 2020, vol. 16, issue 1, No 15, 327-344

Abstract: Abstract Countries increasingly compete to host innovative start-ups to secure and promote economic growth. However, because start-ups seem to be valued differently across countries, both researchers and policymakers must understand the factors determining the variability of early-stage start-up valuations. This study therefore draws on institutional theory and conducts a fuzzy-set qualitative comparative analysis to analyze a sample of 1251 start-up valuations drawn from 13 countries between 2009 and 2016. Our findings show that a common law system together with high levels of innovativeness in a country explain high early-stage start-up valuations. The second configuration leading to high start-up valuations is characterized by favorable cultural circumstances in terms of low levels of uncertainty avoidance and high levels of collectivism, which in combination possibly compensate for a civil law system. Two configurations explaining low start-up valuations are a combination of a lack of innovativeness nationally, and unfavorable informal institutions (i.e., high uncertainty avoidance or low collectivism), regardless of the origins of a nation’s legal system. The last configuration explaining low start-up valuations is a combination of unfavorable informal institutions in terms of high uncertainty avoidance and low collectivism, alongside a civil law system.

Keywords: Venture capital (VC); Valuation; Start-ups; Culture; Innovativeness; Fuzzy-set qualitative comparative analysis (fsQCA) (search for similar items in EconPapers)
Date: 2020
References: View references in EconPapers View complete reference list from CitEc
Citations: Track citations by RSS feed

Downloads: (external link)
http://link.springer.com/10.1007/s11365-018-0534-3 Abstract (text/html)
Access to the full text of the articles in this series is restricted.

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:spr:intemj:v:16:y:2020:i:1:d:10.1007_s11365-018-0534-3

Ordering information: This journal article can be ordered from
http://www.springer. ... urship/journal/11365

DOI: 10.1007/s11365-018-0534-3

Access Statistics for this article

International Entrepreneurship and Management Journal is currently edited by Salvador Roig

More articles in International Entrepreneurship and Management Journal from Springer
Bibliographic data for series maintained by Sonal Shukla ().

 
Page updated 2020-05-02
Handle: RePEc:spr:intemj:v:16:y:2020:i:1:d:10.1007_s11365-018-0534-3