TY - JOUR

T1 - CAN BUSINESS MODEL COMPONENTS EXPLAIN DIGITAL START-UP SUCCESS?

T2 - A Qualitative Analysis of the Business Models of Start-ups from the Perspective of German Venture Investors

AU - Schumacher, Nina

N1 - Publisher Copyright: © 2022, University of Dubronvnik. All rights reserved.

PY - 2022/6/1

Y1 - 2022/6/1

N2 - This study explores the success relevance of business model components of digital start-ups from the perspective of German venture capital (VC) investors. In doing so, the study explains the importance of the business model in general and the importance of a convincing value proposition and a plausible revenue model in particular for the investment decision process of VC investors. The study takes an exploratory three-dimensional research approach that integrates the meso-perspective on the business model, the micro-perspective on the entrepreneurial personality, and the macro-perspective on the entrepreneurial context, thus operating in a very young research field. In contrast to most studies on this topic, this paper shows that the business model is not the key resource for the success of a start-up, while an early concept of a business idea might be. Communication and interaction with VC investors at this early stage can be valuable tools for the continuous development of the initial business idea.

AB - This study explores the success relevance of business model components of digital start-ups from the perspective of German venture capital (VC) investors. In doing so, the study explains the importance of the business model in general and the importance of a convincing value proposition and a plausible revenue model in particular for the investment decision process of VC investors. The study takes an exploratory three-dimensional research approach that integrates the meso-perspective on the business model, the micro-perspective on the entrepreneurial personality, and the macro-perspective on the entrepreneurial context, thus operating in a very young research field. In contrast to most studies on this topic, this paper shows that the business model is not the key resource for the success of a start-up, while an early concept of a business idea might be. Communication and interaction with VC investors at this early stage can be valuable tools for the continuous development of the initial business idea.

KW - Start-up Success

KW - Entrepreneurship

KW - Business model

KW - Venture capital investors

KW - Value Proposition

KW - Revenue Model

KW - Digital Start-up

KW - Management studies

KW - Entrepreneurship

UR - http://www.scopus.com/inward/record.url?scp=85188442577&partnerID=8YFLogxK

U2 - 10.17818/EMIP/2022/1.4

DO - 10.17818/EMIP/2022/1.4

M3 - Journal articles

VL - 31

SP - 81

EP - 98

JO - ECONOMIC THOUGHT AND PRACTICE

JF - ECONOMIC THOUGHT AND PRACTICE

SN - 1330-1039

IS - 1

ER -