Econometric models of duration data in entrepreneurship with an application to start-ups' time-to-funding by venture capitalists (VCs)

Purpose The travel and tourism industry (TTI) could benefit the most from artificial intelligence (AI), which could reshape this industry. This study aims to explore the characteristics of tourism AI start-ups, the AI technological domains financed by Venture Capitalists (VCs), and the phases of the supply chain where the AI domains are in high demand. Design/methodology/approach This study developed a database of the European AI start-ups operating in the TTI from the Crunchbase database (2005–2020). The authors used start-ups as the unit of analysis as they often foster radical change. The authors complemented quantitative and qualitative methods. Findings AI start-ups have been mainly created by male Science, Technology, Engineering and Mathematics graduates between 2015 and 2017. The number of founders and previous study experience in non-start-up companies was positively related to securing a higher amount of funding. European AI start-ups are concentrated in the capital town of major tourism destinations (France, UK and Spain). The AI technological domains that received more funding from VCs were Learning, Communication and Services (i.e. big data, machine learning and natural language processing), indicating a strong interest in AI solutions enabling marketing automation, segmentation and customisation. Furthermore, VC-backed AI solutions focus on the pre-trip and post-trip. Originality/value To the best of the authors’ knowledge, this is the first study focussing on digital entrepreneurship, specifically VC-backed AI start-ups operating in the TTI. The authors apply, for the first time, a mixed-method approach in the study of tourism entrepreneurship.

Download Full-text

Innovative start-ups and young entrepreneurs: Definition of venture capital and findings from Switzerland

Risk Governance and Control Financial Markets & Institutions ◽

10.22495/rgcv7i1art10 ◽

2017 ◽

Vol 7 (1) ◽

pp. 75-81

Author(s):

Simon Zaby

Keyword(s):

Venture Capital ◽

Success Factors ◽

Total Sample ◽

Venture Capitalists ◽

Flow Of Funds ◽

Start Up ◽

Capital Financing ◽

Proper Definition ◽

Definition Of ◽

Start Ups

This paper aims to investigate success factors of innovative start-up firms from the perspective of young start-up managers. Which key factors did they experience before and since the foundation of their company? The experience from the quite young Swiss start-up scene pro-vides important insights to entrepreneurs and policy-makers in emerging countries that cur-rently face the necessity of building up a start-up environment. One part of the data has been collected by the author, the other part originates from the Swiss Venture Capital Database (total sample size: 306). The results show a significant role of venture capital financing for the success of innovative start-ups. Interestingly, this is to some extent because the start-ups see various additional benefits from venture capitalists involved in their firm. Thus, the findings shed new light on a proper definition of venture capital that should not solely focus on the flow of funds.

Download Full-text

Influence of Venture Capital and Knowledge Transfer on Innovation Performance in the Big Data Environment

Journal of Risk and Financial Management ◽

10.3390/jrfm12040188 ◽

2019 ◽

Vol 12 (4) ◽

pp. 188 ◽

Cited By ~ 1

Author(s):

Chuanrong Wu ◽

Xiaoming Yang ◽

Veronika Lee ◽

Mark E. McMurtrey

Keyword(s):

Big Data ◽

Knowledge Transfer ◽

Venture Capital ◽

New Product ◽

User Preferences ◽

Innovation Performance ◽

Venture Capitalists ◽

New Knowledge ◽

Data Environment ◽

Start Ups

Technological innovation requires large investments. Venture capital (VC) is a prominent financial source for innovative start-ups. A venture capitalist will inevitably transfer knowledge to facilitate the innovation of a firm while monitoring and advising its portfolio companies. Only when a firm has its own valuable new knowledge and high growth potential would venture capitalists select it. At the same time, big data knowledge, such as customer demands and user preferences, is also important for the new product development of a firm in the big data environment. Therefore, private knowledge transferred from venture capitalists, new knowledge developed independently by a firm itself, and big data knowledge are the three main types of knowledge for venture-backed firms in the big data environment. To find the influences of VC and knowledge transfer on the innovative performance of venture-backed firms, a model of maximizing the present value of the expected profit of new product innovation performance of a venture-backed firm in the big data environment is presented. The model can help venture capitalists to determine the scale of investment and the optimal exit time and predict the internal rate of return (IRR). This model can also help innovative start-ups to illustrate the value and prospects of a project to attract investment in their business prospectus.

Download Full-text

Exploiting Nanotech Opportunities: A Strategic Entrepreneurship Perspective

MRS Proceedings ◽

10.1557/proc-1106-pp04-03 ◽

2008 ◽

Vol 1106 ◽

Cited By ~ 1

Author(s):

Daniela Baglieri ◽

Sara Giordani

Keyword(s):

New Ventures ◽

Global Market ◽

Venture Capitalists ◽

Due Diligence ◽

Strategic Entrepreneurship ◽

Emerging Industries ◽

Regulatory Frameworks ◽

The Us ◽

The Right ◽

Start Ups

AbstractThis paper analyzes the main challenges nanotech start-ups face in turning nanotech inventions into valuable and marketable nanotech innovations, also considering that nanotechnology discoveries could represent “inventions of methods of inventing” (Rothaermel et al., 2007). In the last decades, nanotechnologies have been a burgeoning area of science and engineering which show an increasing potential to transform a broad range of industries, and to boost the US and European firms' competitiveness (OECD, 1998). Although these emerging technologies share some problems with new ventures in other emerging industries ( e.g. biotech), nanotechnology firms have to balance the management of high technical and high market risk, still evolving regulatory frameworks (Bowman et al. 2006) and strategies for entering the business network and for attracting investments, e.g. in the form of potential venture capitalists. Potential investors, in turn, will face the well-known hurdle of the due diligence, considering for example health or safety concerns, manufacturing, availability of distribution channels, etc. (Burden, 2007).We propose that configuring their network and choosing the right market segment are the key strategies nanotech ventures should adopt in pushing their early growth in the global market. We analyze a sample of 15 European nanotech firms which confirm our predictions. Due to the novelty of the topic covered in this study, this research is exploratory in nature.

Download Full-text

Uncertainty clouds US IPO ebullience going into 2022

Emerald Expert Briefings ◽

10.1108/oxan-db264737 ◽

2021 ◽

Keyword(s):

United States ◽

Hong Kong ◽

Initial Public Offering ◽

The United States ◽

Venture Capitalists ◽

Public Companies ◽

Content Type ◽

Chinese Companies ◽

Public Offering ◽

Start Ups

Significance The company's initial public offering (IPO) is one of three this week expected to raise upwards of USD500mn each, adding to what is already set to be a record-breaking year for IPOs in the United States despite the withdrawal of Chinese companies under pressure from Beijing and Washington. Impacts Hong Kong will be the main beneficiary of Chinese companies' forced IPO withdrawal from US markets. Venture capitalists' being cash-rich should mean a steady stream of start-ups that will eventually seek to become public companies. Investors will press SPAC sponsors to risk more of their own capital.

Download Full-text