A large majority of growth-oriented ventures extensively uses venture experimentation popularized by the lean start-up method, yet we know very little about the boundary conditions under which this method can be successful. Using a longitudinal multiple case study method, we investigate how growth-oriented ventures apply the lean start-up method to achieve early venture success. We find that the presence of prior market knowledge is an important boundary condition for successfully applying the lean start-up method. We also contribute to the absorptive capacity literature by clarifying how new ventures build absorptive capacity early in their venture lifetime.

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In this study, we explore how empowerment initiatives can be understood by drawing on key notions from the power literature. By conceptualizing empowerment as the transformation toward 'power to' by actively using 'power over', we uncover power-related dynamics and tensions arising from empowerment initiatives in ways that go beyond prior work. Our in-depth case study of an empowerment initiative in a military organization highlights the complex challenges that powerful actors face when attempting to enhance the power to act elsewhere in the organization. Our findings demonstrate how powerrelated tensions arise between and within actors, as actors combine and shift between different power practices. We find that power tensions are not merely relational in nature (i.e. between actors), but also arise when individual cognition differs from action. By showing how the interplay of different power practices may result in major tensions, our findings provide a new perspective on why organizational empowerment initiatives may produce unintended outcomes or even completely fail. Moreover, while power-over, power-to and transformative power practices are typically explored separately, this study is one of the first to shed light on the complex relation between these power practices, thereby examining them together. Finally, this study demonstrates how cross-fertilization between the empowerment and power discourses may advance both fields.

Despite the emergent importance of liquidity events (IPOs and trade sales) as performance indicators for VCbacked academic spin-offs, empirical research on the drivers of liquidity events relating to such spin-offs has been limited. In adopting a search perspective, we analyze how different alliance types impact on VC-backed academic spin-offs' chances of realizing a liquidity event. We find that market search alliances increase a spinoff's likelihood of a liquidity event, whereas technology search alliances reduce this likelihood. However, the latter effect is mitigated when the spin-off has a founding team with prior market experience. We explore the implications for practice and policy of the development and success of VC-backed academic spin-offs.

Purpose This paper aims to study the effect of two important marketing decisions on the extent of value capturing by the firm owners. First, it addresses the debate whether acquirers of young technology-based firms value targets that span multiple technology and market categories indicating multiples options for growth or prefer more narrowly defined targets with a clear product and market focus. Second, it investigates to what extent the use of alliances for marketing purposes contributes to value capturing and how they moderate the effect of diversification of technology and marketing. Design/methodology/approach To estimate the acquisition price, a linear regression model is used, including a Heckman correction controlling for the likelihood of being acquired. The hypotheses are tested in a sample of British venture capital backed firms. Findings Firms that convey focus in their marketing activities (either because they focus on a few market categories or because they rely on downstream alliance to market their inventions) receive higher valuations at acquisition than those that diversify. Further, also the size of the product portfolio is negatively correlated to the acquisition price. Finally, the results reveal that firms with a broad patent portfolio can reduce the negative effects on firm value by engaging in less downstream alliances. Originality/value This paper advances existing research on exit strategies for entrepreneurial firms by considering factors explaining acquisition prices, instead of acquisition probabilities. Further, it adds the categorization research by demonstrating how acquirers respond to complex combinations of technology and market categories.

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Deep-tech startups have enormous potential to solve major societal challenges, but their failure rates are quite high (above 90%). In this respect, deep-tech systems and products have long development times and thus require substantial amounts of investment capital long before the first customer can be served. Moreover, potential investors increasingly expect that the value proposition of a deep-tech venture has a clear sustainability dimension. We therefore designed a tool that serves to develop a convincing value proposition for investors, one that is explicitly connected to the Sustainable Development Goals (SDGs) of the United Nations. We adopted a design science approach to develop and test this tool in the context of a deep-tech venture builder located in the Netherlands. The final tool arising from this study extends and integrates various existing tools with an explicit connection to the SDGs. As such, this tool enables deep-tech entrepreneurs to develop a value proposition that is more likely to attract early-stage investors.