Browse > Article

A Study on Investment Decision Factors of Accelerator  

Byun, Jung Wook (Depart, Management of Technology Sungkyunkwan University)
Kim, Yun Bae (Depart, Management of Technology Sungkyunkwan University)
Lee, Byoung Chul (National Assembly Budget Office)
Publication Information
Asia-Pacific Journal of Business Venturing and Entrepreneurship / v.17, no.4, 2022 , pp. 45-55 More about this Journal
Abstract
Accelerator is a private investment institution that provides startups with comprehensive solutions to solve various difficulties such as startup facilities, funds, commercialization, securing a market etc. In addition to the role of an investor as a new startup support model, accelerators have contributed much to improvement of business ability of startups through intensive mentoring. Considering that previous studies gave weight to the determinants of investment from the perspective of investors, this study made a comparative analysis on the relative importance of determinants of investment in startups among accelerators, investors and entrepreneurs through the method of AHP. Results show that accelerators and investors regard "managerial characteristics" of startups as of the highest importance, whereas entrepreneurs think that "market characteristics" of startups are the most important. The result stems from an empirical judgment from the perspective of investors that success of startups depends on the ability of entrepreneur, and it is considered that investors evaluated marketability of startups as the most important factor in consideration of investment payback period. The result is similar to the result of previous studies on the determinants of investment determinants of angel investors and venture capitals. This paper is expected to make a contribution to the advancement of investment decision-making model for accelerators to discover startups with high possibility to grow and achieve more in incubation and investment.
Keywords
Venture-Investment; Accelerator; Startup; Investment Decision Factors; AHP;
Citations & Related Records
연도 인용수 순위
  • Reference
1 Zacharakis, A. L., & Meyer, G. D.(1998). A lack of insight: do venture capitalists really understand their own decision process?. Journal of business venturing, 13(1), 57-76.   DOI
2 Choi, J. B.(2019). A Study on the Effect of Relational Benefits of Accelerators on Relationship Quality and Long-term Orientation. Doctoral Dissertation, Graduate School of Inha University.
3 Choi, Y. S., & Kim, D. H.(2016). A Comparative Study of the Accelerator and Venture Capital through Investment Behavior. Asia-Pacific Journal of Business Venturing and Entrepreneurship, 11(4), 22-36.
4 Dhochak, M., & Sharma, A. K.(2016). Using interpretive structural modeling in venture capitalists' decision-making process. Decision, 43(1), 53-65.   DOI
5 Fehder, D. C., & Hochberg, Y. V.(2014). Accelerators and the regional supply of venture capital investment. SSRN, Retrieved from https://ssrn.com/abstract=2518668.
6 Kim, S. C., & Kim, H. G.(2019). An Empirical Study on Investment Decision-making Factors of Personal Investment Associations: Focused on Investment Decision-Making Factors of Venture Firms. Korean journal of business administration, 32(11), 2051-2084.
7 Koo, K, C.(2008). Derivation of the Venture Capital's Investment Decision Making Model Using AHP and Feasibility Analysis. Doctoral Dissertation, Graduate School of Konkuk University.
8 MacMillan, I. C., Zemann, L., & Subbanarasimha, P. N.(1987). Criteria distinguishing successful from unsuccessful ventures in the venture screening process. Journal of business venturing, 2(2), 123-137.   DOI
9 Ministry of SMEs and Startups(2022). Accelerator investment status, Retrieved(2022.6.1.) from https://www.mss.go.kr/site/smba/main.do.
10 Franke, N., Gruber, M., Harhoff, D., & Henkel, J.(2006). What you are is what you like-Similarity biases in venture capitalists' evaluations of start-up teams. Journal of Business Venturing, 21, 802-826.   DOI
11 Fu, H., Yang, J., & An, Y.(2019). Made for each other: Perfect matching in venture capital markets. Journal of Banking &Finance, 100, 346-358.   DOI
12 Goh, B. K.(2020). The influence of Accelerator's Relation Benefits on Start-up Performance. Master's Thesis, Graduate School of Chung-Ang University.
13 Hall, J., & Hofer, C. W.(1993). Venture capitalists' decision criteria in new venture evaluation. Journal of Business Venturing, 8(1), 25-42.   DOI
14 Han, J. H.(2019). A Study on the Factors affecting Accelerators' Investment Decision on Startup. Master's Thesis, Graduate School of Kookmin University.
15 Heo, J. Y.(2020). A Study on the Determinants of Investment in Startup Accelerators. Asia-Pacific Journal of Business Venturing and Entrepreneurship, 15(5), 13-35.   DOI
16 Hochberg, Y. V.(2016). Accelerating entrepreneurs and ecosystems: The seed accelerator model. Innovation Policy and the Economy, 16(1), 25-51.   DOI
17 Hisrich, R. D., & Jankowicz, A. D.(1990). Intuition in venture capital decisions: an exploratory study using a new technique. Journal of Business Venturing, 5(1), 49-62.   DOI
18 Koo, J. H., Kim, Y. J., Lee, S. Y., Kim, D. H., & Baek, J. Y.(2019). A Study on the Factors Affecting Investment Decision of Korean Venture Capitalist. Asia-Pacific Journal of Business Venturing and Entrepreneurship, 14(4), 1-18.   DOI
19 Jo, S. K.(2019). An Empirical Study on Investment Decision Factors of Corporate Venture Capital: Focusing on investment in NTBVs. Doctoral Dissertation, Graduate School of Chung-Ang University.
20 Kim, G. W., & Moon, S. W.(2019). Current Landscape of Accelerators in Korea. Journal of Entrepreneurship and Venture Studies, 22(4), 1-22.
21 Kong, S. H.(2014). A exploratory study on the investment consideration factors of the angel investors in Korea. Master's Thesis, Graduate School of Korea University of Technology Education.
22 Kim, J. S., Bae, T. J., & Lee S. M.(2021). Key elements that affect selection of the venture capital by a startup. Asia-Pacific Journal of Business Venturing and Entrepreneurship, 16(2), 1-17.   DOI
23 Kim, K. S.(2019). A study on the Moderating Effect of Entrepreneur's Competence on the Relationship between Accelerator's Mentoring and Entrepreneurial Performance: Focusing on Korea Credit Guarantee Fund's Accelerating Program Participating Company. Master's Thesis, Graduate School of Global Entrepreneurship Hoseo University.
24 Konczal, J.(2012.08.08). Evaluating the Effects of Accelerators? Not So Fast, Forbes, Retrieved from https://www.forbes.com/sites/kauffman/2012/08/08/evaluating-the-effects-of-accelerators-not-so-fast/?sh=778b5ee96aa1.
25 Korea Institute of Startup & Entrepreneurship Development(2022). Accelerator registration status. Retrieved (2022.8.22.) from https://www.kised.or.kr/prePubDetail/index.es?mid=a10103010000&prePubId=9.
26 Tyebjee, T. T., & Bruno, A. V.(1984). A Model of Venture Capitalist Investment Activity. Management Science, 30(9), 1051-1066.   DOI
27 Yin, B., & Luo, J.(2018). How Do Accelerators Select Startups? Shifting Decision Criteria Across Stages. IEEE Transactions on Engineering Management, 65(4), 574-589.   DOI
28 Bahn, S. S., Andrew Z., & Song, K. M.(2002). Evaluation Models for Venture Capitalist's Investment Decision. THE KOREAN JOURNAL OF FINANCIAL MANAGEMENT, 19(2), 271-297.
29 Bradford, J.(2014.03.14.). Corporate-Run Startup Accelerators: The Good, the Bad, and the Plain Ugly, tech.eu, Retrieved from https://tech.eu/2014/03/14/corporate-run-startup-accelerators-good-bad-plain-ugly/.
30 Lee, D. H.(2012). A Study on Factors that affect Investment Decision-Making of Domestic Venture Capital in IT Venture Business: Focused on the Mediated Effect of Encashment Possibility. Doctoral Dissertation, Graduate School of Kookmin University.
31 Maxwell, A. L., Jeffrey, S. A., & Levesque, M.(2011). Business angel early stage decision making. Journal of Business Venturing, 26(2), 212-225.   DOI
32 Park, D. I., Yang, Y. S., & Kim M. S.(2021). A Study on Investors Determinants Addressed by Startup Entrepreneurs: In the Center of Startups in Water Industry. Asia-Pacific Journal of Business Venturing and Entrepreneurship, 16(1), 1-19.   DOI
33 Radojevich-Kelley, N., & Hoffman, D. L.(2012). Analysis of accelerator companies: an exploratory case study of their programs, processes, and early results. Small Business Institute Journal, 8(2), 54-70.
34 Smith, S. W., & Hannigan, T. J.(2015). Swinging for the fences: How do top accelerators impact the trajectories of new ventures?. DRUID, 15, 15-17.
35 Trotter, A.(2013.08.). Six Lessons for Corporations Building Innovation Accelerators, INNOSIGHT, Retrieved from https://www.innosight.com/insight/six-lessons-for-corporations-building-innovation-accelerators/.
36 Ministry of Science and ICT(2020). General guidelines for conducting preliminary feasibility studies for national R&D projects. Retrieved(2022.8.22.) from https://www.law.go.kr.
37 Yun, Y., S., & Hwangbo, Y.(2014). Entrepreneurial Characteristics Affecting on Angel Investors's Decision making. Asia-Pacific Journal of Business Venturing and Entrepreneurship, 9(3), 47-61.   DOI