• Asia-Pacific Journal of Business Venturing and Entrepreneurship
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• v.14 no.5
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• pp.1-11
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• 2019

Financing plays an important role in the survival and growth of startups. This study investigates key factors that improve startup financing performance. To this end, we analyze the relationship between the proportion of intellectual property and the financing performance. In addition, this study also examine the impact of the founder's education level on the financing of startups, and the moderating effect of the founder's education level on the relationship between intellectual property proportion and financing. Based on the survey data of 331 startups, this study found that the proportion of intellectual property and the financing performance have an inverted U-shaped nonlinear relationship. While the founder's education level has a positive impact on the financing performance, it negatively moderate the relationship between the intellectual property proportion and the financing performance. Through these findings, this study suggests that it is necessary to maintain an adequate proportion of intellectual property in order to maximize startup financing performance. The higher education level of founder enhances the startup financing. Since the founder's education level weaken the effect of intellectual proporty's effect on startup financing, however, startups need to control the proportion of intellectual property to improving financing according to the founder's education level. Based on signal theory, this study proposes a new strategy of intellectual property to enhance startup financing performance.

• The Journal of Small Business Innovation
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• v.19 no.1
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• pp.1-16
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• 2016

The whole world enters into the financial revolution called crowdfunding. The United States, Italy, the United Kingdom and Japan have already legally allowed equity crowdfunding. South Korea also enacted equity crowdfunding in July 2015 for the purpose of efficient financing for startups and SMEs. This study reviews their crowdfunding regulations in terms of offering and investment limitations, requirements for intermediaries and requirements for issuers. And then, we raise several points about Korean crowdfunding and suggest amendment of regulations to promote fund raising through crowdfunding.

• Asia-Pacific Journal of Business Venturing and Entrepreneurship
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• v.17 no.5
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• pp.67-80
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• 2022

This study was conducted to derive policy measures such as fostering and supporting by examining the actual conditions of domestic startups. The subject of this study was the start-ups located in Seongnam-si, where Pangyo Techno Valley, which is the highest-level innovation cluster in Korea and is evaluated as a start-up mecca. Startups were defined as startups under 7 years old based on new technologies such as IT, BT, and CT, and the subjects of the study were selected. This can be seen as a step forward from previous research in that it embodies the concept of a startup that was previously abstract in a quantitatively measurable way. As a result of the analysis, about 94% of startups are distributed in the so-called "Death Valley" growth stage, and startups above scale-up, which means full-scale growth beyond BEP, account for about 6%. appeared to be occupied. He cited the problem of start-up funds as the biggest difficulty in the early stages of startups, and cited the loan evaluation method that prioritizes sales or collateral in raising funds as the biggest problem. In addition, start-ups rated the access to private investment capital such as VC, AC, and angel investors at a low level compared to policy funds, which are public funds. Most startups showed a lot of interest in overseas expansion, and they chose matching overseas investors such as overseas VCs as the biggest support for overseas expansion. The overall competitiveness in the overseas market was 49.6 points, which is less than 50 points out of 100, indicating that the overall competitiveness was somewhat inferior. It was analyzed that public support and investment in overseas sales channels (sales channels, distribution networks, etc.) should be prioritized along with enhancement of technological competitiveness in order for domestic startups to increase their competitiveness in overseas markets as well as in the domestic market.

• Asia-Pacific Journal of Business Venturing and Entrepreneurship
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• v.18 no.3
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• pp.127-139
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• 2023

During the process of preparing for and initiating a startup, startup entrepreneurs allocate a significant amount of time to developing a business plan. Within this process, the documented business plan serves not only as a roadmap for the venture but also as a communication tool for capital acquisition and internal team collaboration. However, is the business plan, meticulously crafted by entrepreneurs, actually effective in generating startup performance? To answer this question, this study empirically analyzed the impact of a business plan on startup performance. Additionally, it examined how the relationship between the business plan and performance changes based on the satisfaction levels of entrepreneurs regarding the business plan. Through the analysis, the study validated the influence of the completeness of the business plan and entrepreneurial satisfaction on startup performance, and derived implications. To conduct the empirical analysis, a survey was conducted among 150 entrepreneurs. Regression analysis was performed to examine the relationship between the completeness of the business plan and performance, and the sample was further divided into two groups: startups with less than three years of operation and startups with three or more years of operation, for secondary analysis. The analysis results revealed that the completeness of the startup's business plan has a positive impact on both financial and non-financial performance. Furthermore, it is observed that the entrepreneur's satisfaction with the business plan had a moderating effect on the relationship between the business plan and financial performance. Moreover, for startups that are less than three years old, the entrepreneur's satisfaction with the business plan exhibits a moderating effect on the relationship between the completeness of the business plan and non-financial performance. This study holds significance as it reaffirms the importance of business plan development as a means to achieve sustainable growth for early-stage startups and empirically validates its significance. It is expected that this study will provide valuable insights for future startup entrepreneurs to better understand the importance of business planning and contribute to reducing the failure rate of early-stage startups.

• The Journal of the Korea Contents Association
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• v.21 no.9
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• pp.570-579
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• 2021

Compared to men, women experience difficulties in fund-raising, which can be a fundamental impediment to the success of women entrepreneurs. In this study, we examine whether is a difference between genders in the initial funding performance of start-up companies and confirm whether there are differences in organizational factors and entrepreneur factors that affect the initial funding performance. Data were collected through a survey of technology-based start-up companies located in the metropolitan area, and 287 companies were used for hypothesis analysis. The results reveal that there was a significant difference between genders in the investment attraction performance of early-stage entrepreneurs. In addition, as a result of the split-group regression analysis, it was found that in the case of men, firm age, early firm size, starting capital, engineering major had a significant effect on men. However, in the case of the women's group, it was confirmed that all the variables related to the organizational factors and entrepreneur factors were not significant. This study indirectly suggests that prejudices such as gender role stereotypes actually affect economic activities related to investment attraction activities.

• Asia-Pacific Journal of Business Venturing and Entrepreneurship
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• v.15 no.2
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• pp.1-18
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• 2020

This study is to identify the influence of major variables that affect the participation intention of securities type crowdfunding investors and how participation intention and perceived behavioral control affect investors' herd behavior including indirect effect analysis based on the theory of planned behavior. The ultimate purpose of this study is to understand the investment behavior of securities type crowdfunding investors and to help the relevant parties to develop various policies and business plans to revitalize the system and protect investors. An online survey was conducted on people who are interested or have experience in securities type crowdfunding to receive a total of 276 responses. Excluding outliers, a total of 261 responses were taken into account for the final analysis. For the data analysis, structural equation model analysis using SPSS 22.0 and Amos 22.0 statistical package was conducted. As a result, two of the major variables of the theory of planned behavior-attitude and subjective norm-have been found to have a positive effect on the participation intention of securities type crowdfunding investors. And after analyzing the indirect effect, the participation intention was found to play a mediating role between attitude, subjective norm and herd behavior. However, the perceived behavioral control presented as a major variable of behavioral intention in the theory of planned behavior showed that the effect on participation intention was statistically insignificant. Instead, it was found to have a direct positive effect on herd behavior. This is significant because it empirically confirmed that even if investors perceive securities type crowdfunding as easy to participate, perceived behavioral control does not seem to have a significant impact on participation intention because securities type crowdfunding is an investment in an early-stage business with a high risk of loss. On the other hand, the study has great significance in that it empirically confirmed that domestic securities type crowdfunding investors perceive the funding progress information provided by the platform as a signal and imitate many other investors, showing herd behavior when they actually make an investment. It is expected that this study will provide meaningful insights for the policy making of crowdfunding supervisory offices and platform operators by empirically identifying major variables that influence the participation intentions and herd behavior of domestic securities type crowdfunding investors.