Challenges of Early Stage Entrepreneurs : the Roles of Vision Communication and Team Membership Change

We increasingly expect start-ups to tackle the great systemic problems of the world, with a rising demand for game-changing innovations that are both sustainable, responsible and economically viable. However, most of these ventures fail to realize their envisioned growth, or do not even survive their first four years of existence. This is because entrepreneurs face three hard-to-overcome: acquisition of financial resources, the attraction of talent and the organization of this talent into an effective team. In this dissertation, I espouse the roles of vision communication and the management of team dynamics in facing these three challenges. First, the dissertation investigates how entrepreneurs’ vision communication affects the way investors and potential recruits view the venture. Results point out that disruptive and social vision communication strongly affect their perception about the venture. Specifically, both types of visions may have unfo

Do disruptive visions pay off?

Entrepreneurs often articulate a vision for their venture that purports to fundamentally change, disturb, or re-order the ways in which organizations, markets, and ecosystems operate. We call these visions disruptive visions. Neglected in both the disruption and the impression management literature, disruptive visions are widespread in business practice. We integrate real options and impression management theories to hypothesize that articulating a disruptive vision raises expectations of extraordinary returns, which in turn increases the likelihood of receiving funding, but reduces the amount of funding obtained. A novel dataset of Israeli start-ups shows that a standard deviation increase in disruptive vision communication increases the odds of receiving a first round of funding by 22 percent, but reduces amounts of funds received by 24 percent. A randomized online experiment corroborates these findings and further shows expectation of extraordinary returns as the key mechanism driving investors’ sensemaking

Na(+)-D-glucose cotransporter SGLT1 is pivotal for intestinal glucose absorption and glucose-dependent incretin secretion.

To clarify the physiological role of Na(+)-D-glucose cotransporter SGLT1 in small intestine and kidney, Sglt1(-/-) mice were generated and characterized phenotypically. After gavage of d-glucose, small intestinal glucose absorption across the brush-border membrane (BBM) via SGLT1 and GLUT2 were analyzed. Glucose-induced secretion of insulinotropic hormone (GIP) and glucagon-like peptide 1 (GLP-1) in wild-type and Sglt1(-/-) mice were compared. The impact of SGLT1 on renal glucose handling was investigated by micropuncture studies. It was observed that Sglt1(-/-) mice developed a glucose-galactose malabsorption syndrome but thrive normally when fed a glucose-galactose-free diet. In wild-type mice, passage of D-glucose across the intestinal BBM was predominantly mediated by SGLT1, independent the glucose load. High glucose concentrations increased the amounts of SGLT1 and GLUT2 in the BBM, and SGLT1 was required for upregulation of GLUT2. SGLT1 was located in luminal membranes of cells immunopositive for GIP and GLP-1, and Sglt1(-/-) mice exhibited reduced glucose-triggered GIP and GLP-1 levels. In the kidney, SGLT1 reabsorbed ∼3% of the filtered glucose under normoglycemic conditions. The data indicate that SGLT1 is 1) pivotal for intestinal mass absorption of d-glucose, 2) triggers the glucose-induced secretion of GIP and GLP-1, and 3) triggers the upregulation of GLUT2

Recruiting Talent through Entrepreneurs’ Social Vision Communication

For-profit social ventures are proliferating. They often communicate social visions, presenting an ideal future where the ventures resolve environmental or societal issues. We study whether social vision communication helps a startup to recruit talent—a fundamental problem for growth. We argue that jobseekers are less likely to apply to ventures communicating a social vision as they perceive reduced career advancement opportunities. We conducted two complementary studies to test our theory. Study 1 enlisted data from a job board for startups to show that ventures communicating a social vision receive 46.3 percent fewer job applications. Study 2 replicated this finding in a field experiment that further reveals the underlying mechanism: social vision communication limits jobseekers’ perceived career advancement opportunities. Both studies show that higher remuneration can compensate the negative effect of social vision communication. Our findings advance research on purpose-driven organizations, human resources, entrepreneurship and vision communication to caution entrepreneurs against social vision communication as a recruitment strategy

Do disruptive visions pay off? The impact of disruptive entrepreneurial visions on venture funding

Entrepreneurs often articulate a vision for their venture that purports to fundamentally change, disturb, or re-order the ways in which organizations, markets, and ecosystems operate. We call these visions disruptive visions. Neglected in both the disruption and the impression management literature, disruptive visions are widespread in business practice. We integrate real options and impression management theories to hypothesize that articulating a disruptive vision raises expectations of extraordinary returns, which in turn increases the likelihood of receiving funding, but reduces the amount of funding obtained. A novel dataset of Israeli start-ups shows that a standard deviation increase in disruptive vision communication increases the odds of receiving a first round of funding by 22 percent, but reduces amounts of funds received by 24 percent. A randomized online experiment corroborates these findings and further shows expectation of extraordinary returns as the key mechanism driving investors’ sensemaking

Disruptive Startups Get Funding More Easily, but Less of It

A study of 918 startups in Israel seeking a first round of funding found that whether entrepreneurs emphasized the disruptive nature of their business influenced the funding they received. Specifically, the results showed that talking about a venture’s disruptive vision by one standard deviation improved the odds of that venture receiving early funding by 22%. But the venture would also very likely find that the amounts it would raise went down by 24% — for a typical Israeli venture that would mean getting $87,000 less in the Seed round, and$361,000 less in the series A round