Software Start-up failure An exploratory study on the impact of investment

Arho Suominen, Sami Hyrynsalmi, Marko Seppänen, Kaisa Still, Leena Aarikka-Stenroos

    Research output: Contribution to journalArticle in a proceedings journalScientificpeer-review

    5 Citations (Scopus)


    Studying new venture success and failure is central to understanding the dynamics of new venture persistence. Investments, would they be subsidies, venture capital or shareholder investments, are seen as a statement of venture quality, but also as a tool for rapid growth. This study is a exploratory study that focus on creating understanding on if investment serve as a explanatory factor to increased activity (revenue). This study address whether software start-ups differ if the company has early stage investments and what is this relationship with the company being active later. We use the set of over 1,000 Finnish companies founded during 2010-2013 as an empirical material for our inquiry. The results show that, invested companies are different than not invested companies, but revenues are higher for the latter.
    Original languageEnglish
    Pages (from-to)55-64
    JournalCEUR Workshop Proceedings
    Publication statusPublished - 1 Jan 2017
    MoE publication typeA4 Article in a conference publication
    Event9th International Workshop on Software Ecosystems, IWSECO 2017 - Espoo, Finland
    Duration: 29 Nov 2017 → …


    • Failure
    • Software business
    • Start-up


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