THE ENTREPRENEURIAL TEAM AND EARLY STAGE SUCCESS OF START-UPS

Abstract

ABSTRACTThis research examines early-stage new technology ventures and the factors that contribute to their success. Innovation and technology are increasingly critical components in modern economy, and new technology ventures play a key role in creating and leading it. In recent years, the number of new ventures and the amounts of resources invested in them has grown rapidly, further emphasizing their already high importance. This study builds on upper echelons theory and human capital theory and applies them to the entrepreneurial ecosystem. By focusing on early-stage new technology ventures founded in Israel in recent years, and empirically testing the influence of factors such as entrepreneurial, senior management, industry experience and education background within the entrepreneurial team as well as the size of the entrepreneurial team on the early-stage survival and success of the ventures, this study found that previous experience is positively associated with a decrease in the risk of failure and with an increase in the funds raised by the new venture. This study also found that the size of the entrepreneurial team is positively associated with a reduction in the risk of failure. The second part of this research involved the examination of a sample of companies that had achieved outstanding early-stage success and, through a multiple case study, examined the same factors as the empirical model with a different method and from a different perspective. This study’s findings also demonstrate the potential of the data collected and approach taken in investigating technology start-ups, and, in the future, could also assist in setting up a base for a more automated and standardized investment decision process for start-ups.