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The importance of marketing mix planning and customer orientation for venture capital–financed startups: impacts on valuation, performance, and survival

Julia Woehler (Chair of Entrepreneurship and Innovation, Technische Universität Dresden, Dresden, Germany)
Cornelia Ernst (Chair of Entrepreneurship and Innovation, Technische Universität Dresden, Dresden, Germany)

Journal of Research in Marketing and Entrepreneurship

ISSN: 1471-5201

Article publication date: 12 September 2022

Issue publication date: 2 January 2023

375

Abstract

Purpose

Existing literature shows that marketing capabilities of new ventures are critical success factors affecting venture capital funding, startup performance and business failure. The purpose of this study is to investigate whether venture capitalists reward extensive marketing strategies in their startup valuation and whether the marketing mix planning and early strategies on customer orientation predict long-term development of startups.

Design/methodology/approach

To address these gaps, this study investigate 107 business plans of new ventures which received venture capital based on these planning documents. The authors use computer-aided text analysis and regression analyses.

Findings

This study’s findings show that customer orientation has positive effects on new venture performance and intensive marketing mix planning increases the likelihood of survival. However, venture capitalists decrease their startup valuation when they read too much about customer orientation and operative marketing mix planning.

Originality/value

This study relies on unique internal documents and therefore provides valuable and new insights for research and practice. Further, this study investigate various short- and long-term effects from marketing and customer orientation for a startups’ development.

Keywords

Acknowledgements

The authors owe special thanks to the eight venture capital funds which support this research project by allowing the authors to analyze their documents. The authors are grateful for their trust. Further, the authors gratefully thank María Vaquero Martín for her thoughts and valuable suggestions on earlier versions of this manuscript.

Citation

Woehler, J. and Ernst, C. (2023), "The importance of marketing mix planning and customer orientation for venture capital–financed startups: impacts on valuation, performance, and survival", Journal of Research in Marketing and Entrepreneurship, Vol. 25 No. 1, pp. 1-25. https://doi.org/10.1108/JRME-08-2021-0098

Publisher

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Emerald Publishing Limited

Copyright © 2022, Emerald Publishing Limited

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