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International Conference of Software Business

ICSOB 2017: Software Business pp 18–31Cite as

Acquisitions and Growth of Software Startups: The Dual Role of Venture Capital as a Success Factor

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Part of the book series: Lecture Notes in Business Information Processing ((LNBIP,volume 304))

Abstract

Innovation activities provide considerable challenges to small firms due to resource constraints. Conversely, large, established firms are often forced to buy technologies to remain innovative. This paper investigates the interplay of these two aspects in a specific software-based startup context. Based on structured interviews, the paper analyses what characteristics of startups and small firms and resources accessed through networking determine acquisition likelihoods and growth. This addresses a gap in the literature, namely understanding better the dual role of venture capital, specifically with regard to the type of innovation pursued by small firms and in its interplay with other determinants of growth and acquisition.

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Author information

Authors and Affiliations

  1. Augsburg University, Universitätsstr. 16, 86159, Augsburg, Germany

    Marcus Wagner

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  1. Marcus Wagner
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Correspondence to Marcus Wagner .

Editor information

Editors and Affiliations

  1. University of Jyväskylä, Jyväskylä, Finland

    Arto Ojala

  2. Malmö University, Malmö, Sweden

    Helena Holmström Olsson

  3. University of Duisburg-Essen, Essen, Germany

    Karl Werder

Appendix: Interview Questions Used in the Analysis

Appendix: Interview Questions Used in the Analysis

Questions used in the structured interviews for calculation of the Low risk/day-to-day factor variable:

Large firms are so involved with the day-to-day requirements of their customers that they do not have resources for the innovation.

Large firms that lead the market are too risk-averse do carry out the innovation.

Question used in the structured interviews for calculation of the age of the firm:

When was your firm founded?

Question used in the structured interviews for identifying the fate of non-acquired companies:

What happens to start-ups that are not acquired after some years? Do these mostly go out of business and leave the market? Or do most of unacquired firms exist in small but lucrative market niches or merge with another small firm?

Question used in the interviews for identifying organisationally radical innovations:

Would you agree that compared to the competences of the top 3 firms in the industry) innovating your product requires new capabilities or skills of researchers (e.g. only recently taught at universities) or a different structure of R&D in a firm?

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Wagner, M. (2017). Acquisitions and Growth of Software Startups: The Dual Role of Venture Capital as a Success Factor. In: Ojala, A., Holmström Olsson, H., Werder, K. (eds) Software Business. ICSOB 2017. Lecture Notes in Business Information Processing, vol 304. Springer, Cham. https://doi.org/10.1007/978-3-319-69191-6_2

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  • DOI: https://doi.org/10.1007/978-3-319-69191-6_2

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  • Online ISBN: 978-3-319-69191-6

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