Venture Capital Support and Entrepreneurial Autonomy How Do Venture Capitalists and Business Angels affect Young Entrepreneurial (growth) strategies?

Thumbnail Image
Issue Date
Journal Title
Journal ISSN
Volume Title
This explorative study aims to determine to what extent informal and formal venture capitalists influence the growth strategy of start-ups and if there is a difference in the degree of influence between informal and formal venture capitalists. The objective of this research led us to the following research question: “To what extent and if applicable, how do venture capital investors affect the growth strategies of start-ups?” Semi-structured interviews have been held with 11 start-ups. Six start-ups were funded by informal venture capitalists and five were by formal venture capitalists. The data has been coded per theme and analysed accordingly. The results show that both informal- and formal venture capitalists influence the growth strategy of start-ups investigated in this research. However, informal- and formal investors do this in their own way. The results indicate that formal venture capitalists generally try to influence a start-up’s growth strategy to a larger extent than informal venture capitalists. This is by co-developing the strategy with the entrepreneur or focusing on a specific industry. Additionally, start-ups funded by formal venture capitalists are very optimistic about their experiences with formal venture capitalists. Therefore, it contradicts some of many entrepreneurs' negative thoughts about them.
Faculteit der Managementwetenschappen