Disruptive Startups Get Funding More Easily, but Less of It

Timo Balen, Murat Tarakci, A Sood

Research output: Contribution to journalArticleProfessional

Abstract

A study of 918 startups in Israel seeking a first round of funding found that whether entrepreneurs emphasized the disruptive nature of their business influenced the funding they received. Specifically, the results showed that talking about a venture’s disruptive vision by one standard deviation improved the odds of that venture receiving early funding by 22%. But the venture would also very likely find that the amounts it would raise went down by 24% — for a typical Israeli venture that would mean getting $87,000 less in the Seed round, and $361,000 less in the series A round.
Original languageEnglish
JournalHarvard Business Review
Publication statusPublished - 2018

Research programs

  • RSM LIS

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