A Review and Road Map of Entrepreneurial Equity Financing Research: Venture Capital, Corporate Venture Capital, Angel Investment, Crowdfunding, and Accelerators

Abstract

Equity financing in entrepreneurship primarily includes venture capital, corporate venture capital, angel investment, crowdfunding and accelerators. We take stock of venture financing research to date with two main objectives: a) to integrate, organize and assess the large and disparate literature on venture financing; and b) to identify key considerations relevant for the domain of venture financing moving forward. The net effect is that organizing and assessing existing research in venture financing will assist in launching meaningful, theory-driven research as existing funding models evolve and emerging funding models forge new frontiers.

Working the crowd: Improvisational entrepreneurship and equity crowdfunding in nascent entrepreneurial ventures

“…We build on a considerable legacy of work regarding entrepreneurial finance (Drover et al, 2017). A deliberate attempt has also been made to draw upon the research gaps identified in the nascent crowdfunding literature (see Bruton et al, 2015;Moritz and Block, 2016;Pichler and Tezza, 2016;Short et al, 2017).…”

Toward a Cognitive View of Signalling Theory: Individual Attention and Signal Set Interpretation

“…Signalling theory (Spence, 1974) has proven to be an impactful theoretical lens to understand how organizational outsiders, such as prospective consumers or equity investors, go about assessing the quality of a business (e.g., Certo, 2003;Drover et al, 2017;Miller and del Carmen Triana, 2009;Plummer et al, 2016;Reuer et al, 2012;Stuart et al, 1999). This perspective argues that because organizational quality cannot be directly observed, decision-makers must rely on information signals thought to correlate with quality (Bergh et al, 2014;Pollock et al, 2010).…”

Institutional Determinants of Venture Capital Activity: An Empirically Driven Literature Review and a Research Agenda

“…In this case, while authors enquire about the institutional causes that may lead to the development of VC, they confine their analysis to the comparison between the USA and Sweden, without enlarging their perspective and analysing evidence produced in other institutional contexts. Finally, the recent review performed by Drover et al (2017) looks, among other things, on how different (formal and informal) governance mechanisms impact the VC-entrepreneur relationship. 2.…”

“…Finally, the recent review performed by Drover et al . () looks, among other things, on how different (formal and informal) governance mechanisms impact the VC‐entrepreneur relationship.…”