Using the Business Model Canvas to Improve Investment Processes

Research output: Contribution to journalJournal articleResearchpeer-review

2 Citations (Scopus)

Abstract

Purpose: The purpose of this paper is to investigate how entrepreneurs market their business opportunities towards business angels in the investment process. This is achieved by introducing the business model canvas as a mitigating framework to help entrepreneurs in communicating and structuring the information desired by business angels. Design/methodology/approach: This paper mobilises a case study approach by following a series of investment processes and investment meetings between entrepreneurs and business angels through 27 semi-structured interviews as well as participant observation and qualitative participant feedback from 13 investment processes. Findings: The findings illustrate how introducing a framework like the business model canvas helps alleviate the informational and communication challenges between entrepreneurs and business angels. However, some problems occurred when the entrepreneurs and the business angels did not fully agree on the value proposition of the investment opportunity. Research limitations/implications: The findings show that entrepreneurs who market their business cases to investors obtain better feedback and a higher chance of funding using the business model canvas. Implications of this paper also relate to the preparation of the entrepreneurs and that matchmakers between entrepreneurs and investors can use the business model canvas to facilitate such processes. Originality/value: This paper contributes to both the theory of the investment process as well as the application of the business model canvas.

Original languageEnglish
Article number1
JournalJournal of Research in Marketing & Entrepreneurship
Volume20
Issue number1
Pages (from-to)10-33
Number of pages24
ISSN1471-5201
DOIs
Publication statusPublished - 9 Jul 2018

Fingerprint

Investment process
Entrepreneurs
Business model
Business angels
Investors
Investment opportunities
Participant observation
Design methodology
Communication
Structured interview
Value proposition
Preparation
Business markets
Business case
Funding

Keywords

  • Business angels
  • Business model canvas
  • Business pitch
  • Entrepreneurs
  • Investment process

Cite this

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Using the Business Model Canvas to Improve Investment Processes. / Sort, Jesper Chrautwald; Nielsen, Christian.

In: Journal of Research in Marketing & Entrepreneurship, Vol. 20, No. 1, 1, 09.07.2018, p. 10-33.

Research output: Contribution to journalJournal articleResearchpeer-review

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