Hi-tech start-ups: legitimacy challenges and funding dynamics |
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Authors: | Nadia Di Paola Adele Caldarelli Roberto Vona |
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Institution: | Department of Economics, Management, Institutions, University of Naples Federico II, Napoli, Italia |
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Abstract: | Studies on the legitimacy challenges faced by hi-tech start-ups are still scarce, leaving room for research, and policymaking debate. Legitimacy issues may become difficult to face for hi-tech firms in comparison with other start-ups, because they work in an extreme environment where the technological challenges are at the edge of the scientific possibility. The paper proposes a conceptual model to grasp the relevance of three legitimacy drivers of the hi-tech start-ups for investment decisions. We investigated the ability of 30 hi-tech start-up firms to obtain financial resources from the US investors, employing a set-theoretic approach and carried out fuzzy-set Qualitative Comparative Analysis. Our findings clarify that the funding decisions of US investors are driven by the location of headquarter and R&D of hi-tech start-ups and by the educational experience of the founders. Our study has significant theoretical, practical, and policymaking implications. |
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Keywords: | Entrepreneurship funding legitimacy hi-tech start-ups |
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