Interplay of Human and Structural Capital Signals for New Technology Ventures in Early-Stage Venture Capital Funding

Arnauld Bessagnet
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Arnauld Bessagnet: LEREPS - Laboratoire d'Etude et de Recherche sur l'Economie, les Politiques et les Systèmes Sociaux - UT Capitole - Université Toulouse Capitole - Comue de Toulouse - Communauté d'universités et établissements de Toulouse - UT2J - Université Toulouse - Jean Jaurès - Comue de Toulouse - Communauté d'universités et établissements de Toulouse - Institut d'Études Politiques [IEP] - Toulouse - ENSFEA - École Nationale Supérieure de Formation de l'Enseignement Agricole de Toulouse-Auzeville

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Abstract: By drawing on the socio-cognitive perspective of signalling theory, this study examines how the interplay of human and structural capital signals may be associated with early-stage venture capital (VC) funding for new technology ventures. Using a dataset of 453 French new technology ventures operating in the digital industry, the findings reveal that strong signals such as patents or trademarks enhance firm legitimacy, while weaker signals such as education level or degrees from elite institutions reinforce team credibility. Both types of signals are positively correlated with early-stage VC funding. However, the results indicate that combining signals of the same dimension and strength yields diminishing returns because additional within-dimension signals are informationally redundant, add little new information about legitimacy or credibility, and lower the likelihood of funding. In noisy, information-saturated contexts, overlapping signals create redundancy and investor cognitive overload rather than facilitating decision-making. This study advances signalling theory by framing signal interactions as a strategic portfolio choice, and outlines implications for entrepreneurial research, investor decision-making, and future work on signalling strategies.

Keywords: Fundraising; New technology venture; Signal interactions; Signal portfolio dynamics; Venture signalling strategies (search for similar items in EconPapers)
Date: 2026-02-27
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Published in M@n@gement, 2026, pp.e10762. ⟨10.37725/mgmt.2026.10762⟩

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Persistent link: https://EconPapers.repec.org/RePEc:hal:journl:hal-05530582

DOI: 10.37725/mgmt.2026.10762

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