The decreasing numbers of investments in early-stage start-ups indicate that fewer start-ups might become scale-ups and later sustainable business, affecting the eco- nomical development. Early-stage investment actors such as venture capital firms (VCs), incubators and business angels select and support investment in different ways. The VC and investment research mostly regards later-stage team and idea focused strategies. The thesis investigates what characterises and what is important for the early-stage process and selection of tenants pursued, through the investment process at the VC start-up Hidden Dreams, who combines incubator support with early stage investments. Organisational documents and previous research, presented in the frame of reference, lay the foundation for the analysis of the thesis. Research about VC selection strategies, investments, incubators, and more, paves the way of modeling a market need focused strategy combined with support. HD’s past pre-transaction processes and its current portfolio companies are analysed by the frame of reference. A model depicting the early-stage investment and support process is presented as a result, together with other findings in the analysis. The depiction explains the selection and support strategy and process by nine modules, each playing a role in the journeys of the VC and start-up. Insights about how the idea, team and market need affect the outcome of choice from the process are presented. The process becomes iteratively more characterised based on historical lessons. Since early-stage investments are considered risky, a way of minimising that risk can be seen through the combination of VC, incubator and business angel functions. The team and idea play a vital role in the process, especially the entrepreneur or advisor who contribute with market knowledge in the evaluation of market need. If the market inhibits competition the opportunity needs a hook, otherwise the initia- tors need to know why there is no competition. The team and idea plays important parts in the evaluation of market need. The idea works as initiator of the scope and to define value creation capabilities, whilst the entrepreneurial team, through the potential problem-owner, give each case market anchoring through experience and knowledge. / <p>Digital presentation</p>
| Identifer | oai:union.ndltd.org:UPSALLA1/oai:DiVA.org:liu-177279 |
| Date | January 2021 |
| Creators | Eriksson, Robin, Angel, Erik |
| Publisher | Linköpings universitet, Projekt, innovationer och entreprenörskap, Linköpings universitet, Industriell ekonomi |
| Source Sets | DiVA Archive at Upsalla University |
| Language | English |
| Detected Language | English |
| Type | Student thesis, info:eu-repo/semantics/bachelorThesis, text |
| Format | application/pdf |
| Rights | info:eu-repo/semantics/openAccess |
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