In modern, fast moving business environments it is crucial for established corporations to find new sources of innovativeness in order to secure their competitiveness and long-term survival. Startups could be such a new source of innovativeness. Unfortunately, it is difficult for startups and corporations to cooperate. Mostly, this is because of the companies’ organization and the different way they operate. To overcome this gap, corporations started to get engaged with business incubators. Even though this phenomenon can be observed in practice already, little research has been done to better understand the forms this collaboration could have or the motives leading to such a cooperation. By studying an incubator that is engaged with established companies in many different ways, various forms of relationships could be identified. Moreover, based on the descriptions of those types of collaboration and in depth interviews, the motives leading corporations and incubators to get involved in various ways could be identified. The empirical contribution of this thesis is to better understand how established corporations can get engaged with entrepreneurial activity and startups in particular.

The purpose of this study is to test if there is bias in the Venture Capital investment decision-making process towards ecosystems. To guide the research and ensure the fulfillment of the study’s main purpose, we will analyze two specific ecosystems (Stockholm and Silicon Valley). This choice is motivated by their respective importance (Worldwide and Nordics reference) in the global entrepreneurial landscape. The aim is to make an empirical contribution regarding how a herding behavior from Venture Capital investments can drive irrational investment flows towards specific ecosystem such a Silicon Valley, regardless available information towards other ecosystems, in this case, Stockholm. Most researches until today have been focusing on the assessment of startup-focused factors which we believe only picture partly the attractiveness of a startup ecosystem. In our perception, environmental factors in which the ecosystem take place also play an essential role in the attractiveness of an ecosystem to invest in. Is there a behavioral bias in the investment decision processes of Venture Capital regarding startup ecosystems? To assess the presence or absence of a behavioral bias in the investment decision of Venture Capital investors, we are first going to establish an objective attractiveness score using environment-based factors. These factors are going to be combined into six main variables that picture the environmental attractiveness of both ecosystems. In a second time, we are going to submit these six variables to two populations of investors operating in each ecosystem. To do so, we will operate a quantitative study of Stockholm and Silicon Valley-localized private Venture Capital investors towards our different environmental variable. This will enable us to obtain their specific drivers toward these variables and therefore adapt our objective attractiveness scores to obtain weighted attractiveness scores. In a third time, we are going to compare our obtained weighted attractiveness scores per ecosystem with the investment flows effectuated respectively in both ecosystems in 2016. To be able to compare both settings on the same range, we are going to calculate both investment flow data: investment volumes and number of deal closed per capita. The results of this comparison will then bring us either a correlation relation between weighted attractiveness and investment flows per capita for both ecosystems, infirming our theory or a non-correlative relation, which would confirm our theory. Indeed, a non- correlative relation will show that investors do no follow a rational investment behavior based only on the attractiveness of their ecosystem.

This thesis is within the field of Competitive Intelligence. The thesis’s main purpose is to investigate how Swedish startups perceive Competitive Intelligence and how their perception influences how they are dealing with international competition in the domestic market. Even though Competitive Intelligence is not a new field, the existing literature over this topic is not very rich, especially regarding startups. In our work, through qualitative research based on eleven semi-structured interviews, with CEOs and founders of startups in Sweden, and a CEO of an Intelligence firm in Sweden, we argue that there are three approaches to Competitive Intelligence from Swedish startups. The competition-centric, the customer-centric and the market-centric approach. Furthermore, we propose that dealing with competition requires startups to establish an intelligence culture that involves everyone, as it enhances their alertness, contributes to the building of a competitive advantage, increases their sales efficiency and lastly using their “insidership” as it is proposed in the revised Uppsala Model, to gather information and deal with the competitors. Finally, from our findings we propose two new classifications in addition to Murphy’s five classifications of firms based on their engagement in Competitive Intelligence activities, “the Hesitant” and “The Arrogant”.

Abstract Context: Software startups are new companies that aim at developing innovative software-intensive products that stand out from those of other companies in the target market. A successful startup tries to scale its business rapidly, which in turn leads to job creation and an increase number in local products. Product development is an essential aspect of a software startup’s business, and therefore it is important to have a suitable startup ecosystem around a startup to support a new product idea from conception to development to a minimum viable product (MVP) and finally to a full-fledged product. Objective: The objective of this doctoral research is to understand the effect of the startup ecosystem elements on an initial MVP development in software startups and thereby assist startup companies in developing successful products. Method: To achieve the objective, two multivocal literature reviews and multiple empirical studies were conducted to examine: a) the elements in a startup ecosystem, b) initial MVP development in software startups, and c) the effects of startup ecosystem elements on the initial MVP development phase. Results: This doctoral research identified eight main elements in the startup ecosystem that affect the startup and its product development. Additionally, it was found that a product idea is based on a problem experienced by customers or on an unserved customer need. The requirements for developing an initial MVP from the product idea usually come from internal sources, and the elicited requirements are stored in text documents and prioritized based on their value to customers and stakeholders. These requirements are converted into product features, of which some can be used to develop a prototype that can act as an initial MVP. Furthermore, it was observed that the startup ecosystem elements can influence the initial MVP development phase. For instance, supporting organizations such as incubators and accelerators affect initial MVPs by assisting inexperienced founders with training and mentoring during MVP development. Conclusion: A prototype can be used as an initial MVP. Also, experienced founders prefer to develop an initial MVP by themselves, while, inexperienced founders need support from supporting organizations in a startup ecosystem during initial MVP development. / Tiivistelmä Konteksti: Ohjelmistoalan startup-yritykset ovat uusia yrityksiä, jotka pyrkivät kehittämään innovatiivisia tuotteita monille eri kohdemarkkinoille. Uuden yrityksen menestyksekkään käynnistämisen tavoitteena on nopea kasvu, mikä puolestaan luo työpaikkoja ja nostaa kotimaista tuotetarjontaa markkinoilla. Koska tuotekehitys on tärkeä osa ohjelmiston käyttöönottoa, on tärkeää, että uuden yrityksen ympärillä on olemassa sopiva ekosysteemi, joka tukee uutta tuoteideaa konseptista pienimmän toimivan tuotteen kehittämiseen ja edelleen täyteen tuotteeseen. Tavoite: Tämän tutkimuksen tavoitteena on ymmärtää startup-ekosysteemin roolia ensimmäisen pienimmän toimivan tuotteen kehittämisessä ohjelmistoalan startup-yrityksissä ja sen kautta auttaa startup-yrityksiä menestyvien tuotteiden kehittämisessä. Menetelmät: Tutkimustavoitteen saavuttamiseksi tehtiin kaksi kirjallisuuskatsausta sekä useita tapaustutkimuksia, joissa tarkasteltiin a) startup-ekosysteemin elementtejä, b) ensimmäisen pienimmän toimivan tuotteen kehittämistä ja c) startup-ekosysteemin elementtien vaikutusta ensimmäisen pienimmän toimivan tuotteen kehittämisvaiheessa. Tulokset: Tutkimuksessa tunnistettiin kahdeksan tärkeää elementtiä startup -ekosysteemissä, jotka voivat vaikuttaa suoraan tai välillisesti yrityksen käynnistämiseen ja sen tuotekehitykseen. Lisäksi selvitettiin, että tuoteidea perustuu asiakkaiden kokemiin ongelmiin tai täyttymättömiin tarpeisiin. Pienimmän toimivan tuotteen vaatimukset ovat yleensä peräisin yrityksen sisäisistä lähteistä. Vaatimukset on tallennettu tekstidokumentteihin, ja ne priorisoidaan asiakkaille ja sidosryhmille syntyvän arvon mukaan. Vaatimukset muutetaan tuoteominaisuuksiksi, joista osaa voidaan käyttää, kun kehitetään prototyyppiä ensimmäiseksi pienimmäksi toimivaksi tuotteeksi. Edelleen havaittiin, että startup-ekosysteemin elementit voivat vaikuttaa pienimmän toimivan tuotteen kehittämisvaiheeseen. Esimerkiksi tukiorganisaatiot, kuten yrityshautomot ja -kiihdyttämöt, vaikuttavat pienimpiin toimiviin tuotteisiin kouluttamalla ja mentoroimalla kokemattomia perustajia. Päätelmät: Yksinkertaista prototyyppiä voidaan käyttää pienimpänä toimivana tuotteena. Lisäksi, kokeneet perustajat haluavat kehittää ensimmäisen pienimmän toimivan tuotteen itse, kun taas kokemattomat perustajat tarvitsevat tukea ulkopuolisilta organisaatioilta pienimmän toimivan tuotteen kehittämisessä.