Ready or not? Nascent entrepreneurs’ actions and the acquisition of external financing

What is it about?

This study unpacks when external financing is acquired by nascent entrepreneurs. We apply event history analysis and independence tests to a nationally representative panel dataset of nascent entrepreneurs. We find that nascent entrepreneurs tend to acquire external funding relatively late in the new venture startup process. They tend to take actions that are less resource demanding early in the startup process to build their organizations to a fundable stage. We also find that wealth tends to speed up the acquisition of external funding.

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