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New Venture Funding: Identifying a Founder-Funder Exchange Model (FFX)Author(s): Yuzhen Zhou, Charles Matthews
Publication Name: International Council for Small Business (ICSB)
The relationship between the investor and the entrepreneur after initial stage external investment is critical. When it goes well, both parties can leverage the resources the other possesses, such as network, experiences, technical expertise and so on, to achieve venture growth; when it doesn’t go well, it can lead to conflict and the diminishing of trust and premature termination of the relationship. Given this importance, this research begins to develop a conceptual framework grounded in social exchange theory exploring the relationship between the investor and the entrepreneur post funding.