A Co-opetition View of the Entrepreneur–Investor Relationship: Modelling Entrepreneurial Exit Pathways

Abstract

Drawing from the awareness–motivation–capability (AMC) perspective, this article develops a theoretical model, linking the relationship between the entrepreneur and investors to the entrepreneur’s exit path from her venture. It is argued that the relationship between the entrepreneur and the investors can be construed as being co-opetitive in nature, that is, simultaneously involving collaboration to grow the venture and competition to obtain a larger equity stake in the venture and broader decision-making rights. The article contributes to the entrepreneurship literature by developing a co-opetition view of the entrepreneur–investor relationship, theoretically modelling different exit pathways, and linking them to success versus failure perceptions of the entrepreneur’s exit from her venture.