Unpacking Data-driven Technologies and Resource Mobilization Landscape Shifts in New Ventures

Abstract

Over the last two decades, the entrepreneurial landscape has undergone significant change. New ventures now are in the presence of low-cost data-driven technologies, novel entrepreneurial support systems, and evolving fundraising landscapes. While these developments have made entrepreneurship more accessible, they have simultaneously increased the complexity of the venture creation and growth process. As a result, these changes raise important questions about how they affect a venture’s ability to gain traction, mobilize resources, and pursue growth. My dissertation examines several facets of these changes. In the first chapter, I examine whether and when data analytics technologies enhance the visibility of a venture. I find what while these technologies are beneficial on average, there is significant variation among ventures in terms of the informational value gained by data analytics and the founding team's capability to effectively leverage the technology. In the second chapter, with my co-authors, I examine the factors contributing to venture valuation, focusing on the relative explanatory power of environmental conditions, founding team characteristics, and venture progress. We find that a significant amount of variance in valuation is linked to current and previous investment rounds, whereas the contributions of the founding team and venture progress are relatively minor. Lastly, in the third chapter, with my co-authors, I assess the role of seed accelerators in helping ventures match with high-status investors. Our results indicate that while some seed accelerators are effective in facilitating these connections, others are not. Further analysis provides a nuanced view of the benefits of seed accelerators in the investment matchmaking process.