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Funding Trajectory

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The Palgrave Encyclopedia of Private Equity

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Definition

A funding trajectory is a specific path followed by a venture when raising funds in the entrepreneurial finance landscape, from its inception at seed stage over different stages of development and growth. It is a sequence of more-or-less complex funding events, which typically (but not necessarily) combines different providers of venture funding, such as various forms of crowdfunding (CF), business angels (BA), and venture capitalists (VC). In their seminal work on the concept of the funding trajectory, Bessière et al. (2020) illustrate in an empirical case study the dynamics of one particular funding trajectory composed of a sequence of several funding rounds of a young technology start-up in the green tech business. This specific venture started by raising money from a reward-based crowdfunding campaign. In a later stage, a funding round simultaneously combined equity crowdfunding and several business angels. The ultimate sequence of this trajectory featured a combination...

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References

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Authors and Affiliations

  1. Emlyon Business School, Lyon, France

    Peter Wirtz

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  1. Peter Wirtz
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Correspondence to Peter Wirtz .

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Editors and Affiliations

  1. Florida Atlantic University, Boca Raton, FL, USA

    Douglas Cumming

  2. Lancaster University Management School, Lancaster, UK

    Benjamin Hammer

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© 2024 The Author(s), under exclusive licence to Springer Nature Switzerland AG

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Wirtz, P. (2024). Funding Trajectory. In: Cumming, D., Hammer, B. (eds) The Palgrave Encyclopedia of Private Equity. Palgrave Macmillan, Cham. https://doi.org/10.1007/978-3-030-38738-9_172-1

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  • DOI: https://doi.org/10.1007/978-3-030-38738-9_172-1

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  • Publisher Name: Palgrave Macmillan, Cham

  • Print ISBN: 978-3-030-38738-9

  • Online ISBN: 978-3-030-38738-9

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