Posted: June 8th, 2015

How and why are the sources of start-up finance for innovative small firms changing? What are the theoretical arguments for why one particular source of start-up finance is useful to new firms?

-• Coursework essay
• 3000 words excluding tables, graphs and bibliography and including references to authors in the text
“Students must keep to the word limits given for each assignment. If the word limit is exceeded (excluding references and appendices) students will face a minimum penalty of 5%.

-Essay question:

How and why are the sources of start-up finance for innovative small firms changing? What are the theoretical arguments for why one particular source of start-up finance is useful to new firms?.

the paper should be based on the lecture, so i will attach all the slides and info they provide us with all the essential readings to write upon: Lecture: Building Innovative Small Firms: Financing Entrepreneurship and Innovation
• Funding innovation and entrepreneurship
• Business angels and other early stage finance mechanisms
• Stages of new venture development
• Sequences of new venture financing
• Due diligence
• Venture capital

Core Readings:
BVCA (2004) ’BVCA Report on Investment Activity 2004 London:BVCA

Cressy, R ‘Venture Capital’ Chapter 14 in M. Casson, B Yeung, a.Basu and N. Wadeson (eds) The Oxford Handbook of Entrepreneurship Oxford:OUP 353-386

Politis, D (2008) ‘Business Angels and value added: what do we know and where do we go?’ Venture Capital 10, 2 127-147

Rossiello, A and Parris, S (2009) ‘The patterns of venture capital investment in the UK bio-healthcare sector: the role of proximity, cumulative learning and specialisation’ Venture capital 11, 3 185-211

Mason, C and Harrison, T (2004) ‘Does investing in technology-based firms involve higher risk? An exploratory study of the performance of technology and non-technology investments by business angels’ Venture Capital 6, 4 312-331

Oakey, R (2003) ’Funding innovation and growth in UK new technology-based firms: some observations on contributions from the public and private sectors’ Venture Capital: An International Journal of Entrepreneurial Finance 5,2 161-179

Martin, R, Berndt, C, Klagge, B and Sunley, P (2005) ’Spatial proximity Effects and Regional Equity gaps in the venture capital Market: Evidence from Germany and the UK’ Environment and Planning A 37, 7 1207 – 1231

Wray, F (2012) ’Rethinking the venture capital industry: relational geographies and impacts of venture capitalists in two UK regions’ Journal of Economic Geography 12, 1 297-320
Belleflamme, P, Lambert, T Schwienbacher, A (2013) Crowdfunding: Tapping the right crowd Journal of Business Venturing http://perso.uclouvain.be/paul.belleflamme/papers/JBV2013.pdf
Macht, S M and Weatherstone, J (2014) The Benefits of Online Crowdfunding for Fund-Seeking Business Ventures Strategic Change: Briefings in Entrepreneurial Finance, 23, 1–14
http://onlinelibrary.wiley.com/doi/10.1002/jsc.1955/full
Recommended Readings:
Sexton and H. Landstrom (eds) The Blackwell Handbook of Entrepreneurship Oxford:Blackwell 64-82 Part III Financing Growth, Chapters by Donkells, Mason and Harrison, Manigart and Sapienza, Amit, Brander and Zott
Nadeau, P. (2010) ‘Venture capital investment selection: do patents attract investors?’ Strategic Change: Briefings in Entrepreneurial Finance, 19: 325-342.
Ahlers, G K C, Cumming, D, Gunther, C and Schweizer, D (2012) ‘Signalling in Equity Crowdfunding‘ Working paper
Seminar: Finance in practice – Simon Potter, Seedrs , https://www.seedrs.com/