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The Impact of Venture Capital Financing on Lean Startups
KTH, School of Industrial Engineering and Management (ITM), Industrial Economics and Management (Dept.), Entrepreneurship and innovation.
2016 (English)Independent thesis Advanced level (degree of Master (Two Years)), 10 credits / 15 HE creditsStudent thesis
Abstract [en]

This master thesis deals with the problem statement of how venture capital financing influences the processes and the outcome of a lean startup. Hence, the thesis focuses on the lean methodology and its implementation in startups. The literature review shows that lean is a well-established term and a concept used in various different areas. Nevertheless, in the field of young and emerging ventures, it is fairly new approach. Thus, in combination with VC funding, where also a shift towards less capital and faster cycle times is seen, a research gap can be identified. In other words, the research aims to investigate how the two concepts influence and interact with each other. Moreover, the focus is on measuring if and how the startup's lean operations are affected by the investment. Hence, the thesis concentrates on the entrepreneur's point of view. Empirical data for the research project was gained through five expert interviews with startup founders that evolved an idea and built a company that received venture capital funding at some point. The outcome of the study showed that not the VC firm itself but the vast investment affected the processes and the outcome of the lean startup. Hence, the sudden impact can destabilize the learning circle. Furthermore, part of the startups investigated had to reposition themselves because of changing objectives. In conclusion, the findings imply that certain aspects determine how a cooperation of this two concepts will look. Also, there are factors such time of funding, size of investment and the details of the partnership agreement that will have an impact on the lean concept applied by the startup.

Place, publisher, year, edition, pages
2016. , 58 p.
National Category
Other Engineering and Technologies
Identifiers
URN: urn:nbn:se:kth:diva-190597OAI: oai:DiVA.org:kth-190597DiVA: diva2:952259
Supervisors
Examiners
Available from: 2016-08-19 Created: 2016-08-12 Last updated: 2016-08-19Bibliographically approved

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