Obtaining early-stage financing for technology entrepreneurship: reassessing the demand-side perspective

Einar Rasmussen and Roger Sørheim

Venture Capital, 2012, vol. 14, issue 2-3, 77-89

Abstract: New technology-based firms face particular challenges in obtaining early-stage financing to develop and grow their business. Seen from the supply-side, high levels of uncertainty make investors reluctant and create a liability related to the supply of financing to these ventures. This introductory article reassesses the demand-side perspective to financing of technology entrepreneurship by considering how entrepreneurs can improve their chances of obtaining external financing. We propose that the perceptions and preferences of the entrepreneurs, the content and presentation of the business case, the networks and the relationships of the entrepreneurs, and the process of obtaining financing are issues of key importance for understanding how entrepreneurs can enhance the ‘investment readiness’ of their ventures. We synthesize the papers in this special issue and their contributions to research from the demand-side perspective. Moreover, we outline prospective areas for future research and implications for practice.

Date: 2012
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DOI: 10.1080/13691066.2012.667908

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