Entrepreneurial Teams and Start-Up Capital Sources: A Network Ambidexterity Approach

Abstract

Utilizing recent advances in the study of entrepreneurial network ambidexterity and the development of a team based theory of entrepreneurship, this study explores the relationship between sources of start-up capital and the presence of a team based governance system. This study suggests that the presence of an entrepreneurial team may result in a strategic affinity for particular source of start-up capital due to the presence of shared network ties among team members. We extend current conceptualization of start-up capital availability and investor signaling to suggest a non- recursive relationship between entrepreneurial firms and capital sources. Our exploratory findings, partially confirmed utilizing data from the US Census Bureaus’ Survey of Business Owners, suggest the relationship between capital sources and firms is much more complex than currently thought.