A conceptual model of entrepreneurial reputation from a venture capitalist’s perspective

Abstract

<jats:p> Research on reputation has mainly focused on established companies ignoring the relevance of reputation for start-ups. However, start-ups also need to consider factors that influence their reputation with regard to different stakeholders, especially potential investors. In this article, we develop a model of the so-called ‘entrepreneurial reputation’ from a venture capitalist’s perspective. For that purpose, the RepTrak® System – a model of corporate reputation developed by the Reputation Institute – is discussed in the context of entrepreneurship. With the help of a literature review, we work out relevant criteria used by venture capitalists in their decision-making process of whether to invest or not to invest in a new venture and integrate these in the RepTrak® System. The following five dimensions appear to be the key drivers of entrepreneurial reputation from a venture capitalist’s perspective: (1) entrepreneur/team, (2) market/industry, (3) products/services, (4) innovation and (5) finance. </jats:p>

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