City Research Online

Early individual stakeholders, first venture capital investment, and exit in the UK startup ecosystem

Banal-Estanol, A., Macho-Stadler, I., Nieto-Postigo, J. & Pérez-Castrillo, D. (2023). Early individual stakeholders, first venture capital investment, and exit in the UK startup ecosystem. Journal of Corporate Finance, 80, article number 102420. doi: 10.1016/j.jcorpfin.2023.102420


We create a novel, comprehensive dataset of UK-based startups with extensive information on ownership, control, and valuation. Our database provides unique descriptive evidence about the relevance of individual stakeholders in startups, particularly before the entry of venture capital institutional investors. We compare the influence of two comparable characteristics of various groups of pre-institutional individual stakeholders: size and experience. We show that the quantity as well as the experience, of founders, directors, and other individual investors correlate with the startup's type of, and value at, exit. Success results are very different across types of diversity: functional diversity appears to have a positive relationship with success whereas that of demographic diversity is negative.

Publication Type: Article
Additional Information: This article is available under the Creative Commons CC-BY-NC-ND license and permits non-commercial use of the work as published, without adaptation or alteration provided the work is fully attributed.
Publisher Keywords: Startups, Venture capital, Founders, Individual investors
Subjects: H Social Sciences > HG Finance
Departments: School of Policy & Global Affairs > Economics
SWORD Depositor:
[thumbnail of 1-s2.0-S092911992300069X-main.pdf]
Text - Published Version
Available under License Creative Commons Attribution Non-commercial No Derivatives.

Download (1MB) | Preview


Add to AnyAdd to TwitterAdd to FacebookAdd to LinkedinAdd to PinterestAdd to Email


Downloads per month over past year

View more statistics

Actions (login required)

Admin Login Admin Login