Session 97

Accelerators, corporate VCs and new venture creation

Track K

Date: Monday, October 5, 2015

Track X

Time: 13:45 – 15:00

Paper

Room: Director's Row H


Session Chair:

  • Sheryl Winston Smith, Temple University

Title: Creating Pirates: Assessment of an Entrepreneurship Acceleration Program

Authors

  • Carla Costa, Utrecht University
  • Nitzan Merguei, University College Maastricht

Abstract: We look at entrepreneurial acceleration programs to investigate if their characteristics affect the likelihood participants will become entrepreneurs, by doing a multilevel study using data from the Startup Pirates global acceleration program. Results show a significant impact on the likelihood that participants would later engage in entrepreneurship, even when controlling for the participants’ characteristics. These suggest that the format of acceleration programs influences the conversion of participants into de facto entrepreneurs. Program characteristics such as a smaller size of the entrepreneurial teams, a lower variety in the participants’ fields of expertise, gender balance, a larger variety in the mentors’ fields of expertise, the number of organizers, and a larger mix of participant nationalities, increased the likelihood the participants would later decide to embrace entrepreneurship.

Title: Now and Later?: Mentorship, Investor Ties and Performance in Entrepreneurial Seed-Accelerators

Authors

  • Jorge Mejia, University of Maryland
  • Anand Gopal, University of Maryland

Abstract: There is growing interest in understanding how seed accelerators work and where they provide value to entrepreneurs. In this paper, we focus exactly on this question – we examine how mentorship and investor ties lead to positive accelerator outcomes and through them, to long-term firm success. Using the full cohort (n=105) of an international accelerator, we follow the progress of the startups during and 15-months after the accelerator. We find that teams with more mentorship have a higher likelihood of achieving short-term outcomes during the accelerator, such as the release of a prototype. Similarly, startups that develop more investor ties during the accelerator survive and raise capital at a higher rate. We provide practical implications for start-ups and accelerator programs and theoretical contributions to entrepreneurship research.

Title: Swinging for the Fences: How do Top Accelerators Impact the Trajectories of New Ventures?

Authors

  • Sheryl Winston Smith, Temple University
  • Thomas Hannigan, Temple University

Abstract: Increasingly, entrepreneurs face an evolving paradigm for early financing: accelerators that integrate equity investments with cohort-based mentoring. The emergence of accelerators attracts substantial interest; however scholars know little about their impact. Here we ask: What is the impact of receiving financing from a top accelerator on the subsequent trajectory of the venture? We analyze a hand-collected dataset (n= 619 startups) consisting of every cohort of the two top accelerators—Y Combinator and Tech Stars—from 2005-2011 and a matched sample of startups that instead receive first formal financing from top angel investor groups. We find that startups in the accelerators exit more quickly relative to angel group backed startups through two channels, acquisition and quitting; receive follow-on funding more quickly in the short run from VC investors, but take longer to receive VC follow-on funding in the longer term.

Title: The Role of Corporate Venture Capital in Standard-setting

Authors

  • Tianxu Chen, Oakland University
  • Xiumei Li, Drexel University

Abstract: In this paper, we integrate the literatures on technological standards and entrepreneurship to offer an integrative perspective on the role of corporate venture capital (CVC) in standard-setting. With a particular focus on startups seeking the establishment of technological standards, we investigate factors influencing their decision to form CVC relationships. We found that the more standard-setting processes a startup is involved, the more likely it will form investment ties with CVC; the more standards a startup establishes, the less likely it forms investment ties with CVC.

All Sessions in Track K...

Sun: 08:00 – 09:15
Session 10: Entrepreneurship in Base-of-the-Pyramid Markets
Sun: 09:45 – 11:00
Session 11: Crowdfunding Research: Present and Future
Sun: 11:15 – 12:30
Session 12: Environmental Entrepreneurship: How and When do Entrepreneurs address Environmental Degradation?
Sun: 16:15 – 17:30
Session 50: Entrepreneurship and Institutional Environment
Sun: 17:45 – 00:00
Session 319: Entrepreneurship and Strategy Business Meeting
Mon: 08:00 – 09:15
Session 56: Family firms
Mon: 11:15 – 12:30
Session 119: Competition and entrepreneurial entry
Mon: 13:45 – 15:00
Session 53: New forms of entrepreneurial funding
Session 97: Accelerators, corporate VCs and new venture creation
Mon: 16:45 – 18:00
Session 59: Entrepreneurship in emerging markets
Session 98: Culture, institutions and entrepreneurship
Tue: 08:00 – 09:15
Session 54: Venture capital and angel financing
Session 118: Entrepreneurial orientation and strategic entrepreneurship
Session 217: Leadership and Governance in Family Firms
Tue: 11:00 – 12:15
Session 51: Academic entrepreneurship
Tue: 14:15 – 15:30
Session 58: Corporate VCs and spin-outs
Session 120: Creativity, knowledge spill overs and a venture's legitimacy
Tue: 15:45 – 17:00
Session 52: Entrepreneurial business models
Session 55: Entrepreneurship and cognitions
Tue: 17:30 – 18:45
Session 57: Entrepreneurial teams
Session 99: Governance and entrepreneurial finance

All Sessions in Track X...

Sun: 08:00 – 09:15
Session 74: Open Strategy Workshops: Lessons Learned from Practising Strategizing
Sun: 09:45 – 11:00
Session 29: The Elephant in the Room: How public policy and institutions help drive innovation, entrepreneurship, and firm performance
Session 76: The evolution of the strategy as a profession and the field of strategy
Sun: 11:15 – 12:30
Session 12: Environmental Entrepreneurship: How and When do Entrepreneurs address Environmental Degradation?
Session 38: Big Game Hunting: Accessing and Interacting with Senior Executives for Empirical Research
Sun: 13:45 – 14:30
Session 307: Lifetime Achievement Award Recipient
Sun: 14:45 – 15:45
Session 7: New Frontiers in Technologies, Fields, and Business Models: Implications for Academic and Practice Knowledge Creation
Sun: 16:15 – 17:30
Session 61: The Institutional Level of Strategizing Activities
Session 261: Knowledge Creation and Sharing in Virtual Communities
Mon: 08:00 – 09:15
Session 72: External Influences: Audiences and Media
Session 126: Entry Mode & Cross-Border Acquisitions
Session 140: New Perspectives on the Outside Director Selection Process
Mon: 09:45 – 11:00
Session 8: Elevating our Understanding of Organizational Performance: Bridging the Frontiers of Business and Corporate Strategies
Mon: 11:15 – 12:30
Session 149: Management and Coordination of Multinationals
Session 220: Perspectives on CEO Compensation
Mon: 13:45 – 15:00
Session 16: Human Capital and Innovation
Session 37: Political Ties: Knots or Bows?
Session 63: Political and Material Aspects of Strategy Making
Session 97: Accelerators, corporate VCs and new venture creation
Session 258: Explainng CSR: External Factors
Mon: 15:15 – 16:15
Session 227: Mergers, Acquisitions and Divestitures: Reconfiguring Resource Bases for Value Creation and Growth
Session 308: Strategy Beyond the Firm: Creating and Capturing Value from External Resources
Session 310: When the Smoke Clears: The Emergence of the Cannabis Industry
Session 311: Theory Fragmentation in Strategic Management?
Session 312: Climate Change: Why and How Should Strategic Management Care?
Mon: 16:45 – 18:00
Session 42: The Word is Out! Stakeholder Responses to Public Signals of Firms' Behaviors
Session 112: Acquisitions - Before the Deal
Tue: 08:00 – 09:15
Session 309: Looking Good and Sounding Better: Impression Management by CEOs
Tue: 09:45 – 10:45
Session 9: Whatever Happened to Theory in Strategic Management?
Tue: 11:00 – 12:15
Session 70: CEO Characteristics: Microfoundations of Behavioral Strategy
Tue: 14:15 – 15:30
Session 116: Acquisitions - After the Deal
Tue: 15:45 – 17:00
Session 52: Entrepreneurial business models
Session 219: A Tough Crowd: Critical Examinations by Owners and Stakeholders
Session 262: Pioneering Knowledge
Tue: 17:30 – 18:45
Session 144: Board Structure: What Works Best?
Session 208: Internationalization Strategies and Performance


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