The declining stock markets in 2000 and 2001 have made it more difficult for entrepreneurs to obtain the financing for new ventures and have had an impact on existing relationships between young companies and their investors. Investor relationship marketing addressing the specific and varying requirements of investors is crucial as professional investors in particular apply stringent criteria for investments and as it is becoming increasingly difficult for start-ups to raise funds . Entrepreneurs face significant difficulties when acquiring capital for a start-up . Having at their disposal a variety of potential sources founders sometimes fail to chose the optimal alternative. This can impose considerable limitations on growth and development potential, increase the susceptibility to crises and threaten the very existence of the company . Professional management of relationships to potential and actual investors ought to be one of the main focuses of entrepreneurs’ attention as inappropriate financing has been identified as the most frequent reason for the failure of new ventures .
Entrepreneurial activities considerably influence the growth of an economy and have a positive effect on prosperity . In the Federal Republic of Germany (FRG) small and medium-sized enterprises (SME), which most new ventures are , account for more than half of the gross value added of all businesses and for over two thirds of all jobs . SMEs are not only essential for labour markets. Because they can react faster and more flexibly to changing market situations they contribute to an economy’s ability to compete internationally. Since only a limited number of them survives – in Germany approximately 50% of new companies fail within the first five years – an economy must dispose of a sufficiently large base of young and growing ventures . A systematic investor relationship marketing for these ventures is essential for their survival and prosperity, because they help them to acquire the capital for sustaining loss-incurring periods and consolidating their operations. Investor relationship marketing for start-ups is particularly important because the investment can be a prerequisite for the establishment of the venture and ultimately a determinant for an economy’s base of new ventures.
Inhaltsverzeichnis (Table of Contents)
- IN SEARCH OF CAPITAL START-UPS FACE A MULTITUDE OF CHALLENGES
- THE QUALITY OF RELATIONSHIPS BETWEEN NEW VENTURES AND INVESTORS IS CRUCIAL FOR ENTREPRENEURIAL SUCCESS - AND VITAL FOR ECONOMIC PROSPERITY
- START-UPS AND INVESTOR RELATIONSHIP MARKETING – DEFINITION OF RELEVANT TERMS
- GOALS AND COURSE OF THIS STUDY
- DEVELOPMENT OF THE REFERENCE FRAMEWORK FOR INVESTOR RELATIONSHIP MARKETING FOR START-UPS AND DERIVATION OF WORKING HYPOTHESES
- DEVELOPING THE REFERENCE FRAMEWORK OF INVESTOR RELATIONSHIP MARKETING FOR START-UPS
- OBJECTIVES AND TARGET GROUPS
- Target Groups
- Business Angels
- Venture Capitalists
- Objectives
- DECISION VARIABLES OF THE INVESTOR RELATIONSHIP MARKETING MIX FOR START-UPS
- Product-related Decision Variables
- Price-related Decision Variables
- Distribution-related Decision Variables
- Communication-related Decision Variables
- SEQUENTIAL ELEMENTS OF INVESTOR RELATIONSHIP MARKETING FOR START-UPS
- Contacting potential Investors
- Presentation
- Due Diligence
- Structuring the Deal
- DERIVING THE WORKING HYPOTHESES
- DESCRIPTION AND RESULTS OF THE SURVEY
- DEVELOPMENT OF THE QUESTIONNAIRE
- DATA COLLECTION AND SAMPLE DESCRIPTION
- OBJECTIVES AND TARGET GROUPS
- Objectives
- Target Groups
- DETERMINING DECISION VARIABLES OF THE INVESTOR RELATIONSHIP MARKETING MIX FOR START-UPS
- Product-related Decision Variables
- Price-related Decision Variables
- Distribution-related Decision Variables
- Communication-related Decision Variables
- DETERMINING SEQUENTIAL ELEMENTS OF INVESTOR RELATIONSHIP MARKETING FOR START-UPS
- Contacting Potential Investors
- Presentation
- Due Diligence
- Structuring the Deal
- CONSOLIDATED INTERPRETATION OF RESULTS
- SUMMARY AND OUTLOOK
Zielsetzung und Themenschwerpunkte (Objectives and Key Themes)
This study aims to explore the crucial relationship between start-ups and investors, specifically focusing on the application of Investor Relationship Marketing (IRM) within this context. The goal is to develop a comprehensive framework for IRM for start-ups, considering the unique challenges and opportunities faced by early-stage ventures.
- The importance of strong relationships between start-ups and investors for entrepreneurial success and economic prosperity.
- Defining the key elements of Investor Relationship Marketing (IRM) specifically tailored for start-ups.
- Identifying the target groups for IRM in the start-up context, including Business Angels and Venture Capitalists.
- Examining the decision variables of the IRM mix for start-ups, encompassing aspects like product, price, distribution, and communication.
- Analyzing the sequential elements of IRM for start-ups, from initial contact to deal structuring.
Zusammenfassung der Kapitel (Chapter Summaries)
- Chapter 1: This chapter introduces the topic of investor relationships for start-ups, highlighting their critical role in entrepreneurial success and economic prosperity. It defines key terms related to Investor Relationship Marketing (IRM) and outlines the goals and scope of the study.
- Chapter 2: This chapter focuses on developing a comprehensive reference framework for IRM for start-ups. It delves into the objectives and target groups of IRM, specifically examining the characteristics and motivations of Business Angels and Venture Capitalists. This chapter also explores the decision variables of the IRM mix, considering product, price, distribution, and communication strategies. The chapter concludes by outlining the sequential elements of IRM, from initial contact to deal structuring.
- Chapter 3: This chapter presents the results of a survey conducted to gain insights into the application of IRM in the start-up context. It describes the questionnaire development process, data collection methods, and sample description. The chapter then analyzes the results in relation to the decision variables of the IRM mix and the sequential elements of the IRM process.
Schlüsselwörter (Keywords)
The central focus of this work revolves around the intersection of Investor Relationship Marketing (IRM), start-ups, and entrepreneurial finance. Key topics explored include the strategic development of relationships between start-ups and investors, the identification and understanding of target investor groups such as Business Angels and Venture Capitalists, and the implementation of an effective IRM mix that considers various decision variables and sequential elements. The study emphasizes the importance of establishing strong relationships with investors for achieving entrepreneurial success and fostering economic growth.
- Citar trabajo
- André Presse (Autor), 2001, Investor Relationship Marketing for Start-ups, Múnich, GRIN Verlag, https://www.grin.com/document/23901
