How do accelerators help startups Funding by creating value for investors?
Subject Areas : Entrepreneurship
Fereshteh Moshaver
1
,
Kambiz Talebi
2
*
,
Ali Davari
3
,
Hamideh Reshadat joo
4
1 - PHD Student, Department of Entrepreneurship, Faculty of Management and Economics, Research Sciences Unit, Islamic Azad University
2 - Department of business, faculty of entrepreneurship, Tehran,
3 - Department of Business Creation, Faculty of Entrepreneurship, Tehran University
4 - Department of Higher Education Management, Faculty of Management and Economics, Research Sciences Unit, Islamic Azad University
Keywords: Accelerator, Startup, Transaction Cost, Information Asymmetric, Investment,
Abstract :
entrepreneurship finance always faces many Challenges. Meanwhile, financial problems are one of the biggest obstacles to entrepreneurship. Accelerators, which are rapidly multiplying as emerging financing mechanisms, have many options for finding investors and connecting them with startups. So, they can help solving these financial challenges. The purpose of this study is to investigate the mechanisms used by accelerators to create value for investors and measure its effects on their investment decisions. The current research was done quantitatively. To collect data, online questionnaires sent to the investors who had invested at least once in startups of Canadian accelerators. Structural equation modeling with PLS technique was used for data analysis. The results of the research showed that the participation of investors in the acceleration process and disclosing information related to entrepreneurial teams and their startups leads to the reduction of information asymmetry for investors and as a result increases the amount, number of rounds and speed of investment in accelerator startups. On the other hand, it was found that reducing common transaction costs in investment, including search cost, verification cost, facility and space cost, screening and evaluation cost, can also help increase the amount, number of rounds, and speed of investment in accelerated startups.