The resource endowments of start-ups not only affect their motivation to acquire complementary resources, but also determine whether they have the opportunity to attract external resources. From the perspective of financing motivation, enterprises with rich technology resources need more financial capital to convert their scientific and technological achievements （" technology attracting capital”）, and from the perspective of financing opportunities, such enterprises are also welcomed by venture capital （" capital pursuing technology”）. It is a persuasive perspective to explain the external financing activities of enterprises on the structure of the entrepreneurial resource analysis. This paper puts forward the following assumptions: （1） Hypothesis 1: the technological resources of start-ups have a promoting effect on the introduction of financial investors. （2） Hypothesis 2-1: Increasing the access of founding shareholders’ social capital to external capital is conducive to introducing capital from external financial shareholders; hypothesis 2-2: the attractive force of technical resources to external capital is stronger in enterprises with more social capital of founding shareholders. （3） Hypothesis 3-1: The more financial capital is invested, the greater possibility founders do not accept the investment from external financial shareholders; hypothesis 3-2: start-ups with abundant technological and financial resources are reluctant to accept external financial shareholders. This paper proves the above hypotheses by using the empirical data of companies in the communication and information technology industry before their list. The research of this paper has the following innovations: （1） It explains financing activities from the perspective of resources, and considers the construction of equity relationship of start-ups as an active choice behavior based on the consideration of complementary resources. （2） The dual analysis framework of motivation and opportunity is applied to research venture financing, and only when " subjective motivation paralleling objective opportunity”, the equity relationship between start-ups and venture capital can be established. （3） It highlights the particularity of entrepreneurial resources of scientific and technological enterprises, studies the signal function of technological resources. In general, this paper combines the resource base theory, the financing theory and the social network theory to explain the financing choice of start-ups. The conclusions have a great significance on the selection of external shareholders.
Technological Start-ups’ Equity Financing: Technology Attracting Capital or Capital Pursuing Technology?
Foreign Economics & Management Vol. 41, Issue 03, pp. 141 - 152 (2019) DOI:10.16538/j.cnki.fem.2019.03.010
 Chen Shuang-ying, JIN Run-Tian, Long Xiao-ning, Shao Yun-fei. Empirical research on the impact of private entrepreneurs' social relations capital on R & D investment decision making [J]. management world. 2010 (1): 88-97.
 CHI Jian-xin. Financing Instruments Options and System Portfolio of the Science and Technology Ventures [J]. Reform . 2010 (1): 119-126.
 HOU Jian-ren, LI Qiang , ZENG Yong, Entrepreneurs Shareholdings, External Shareholders and Capital Structure [J], Journal of Management. 2010(04): 595-604.
 Kou zong-Lai, Zhou min. confidentiality or patents? [J]. Economics (quarterly). 2012 (01): 115-134.
 Mei De-qiang, long Yong. The relationship between entrepreneurial capability, innovation type and financing mode of high-tech enterprises. [J]. Management Review. 2012(01): 67-74.
 Rui Zheng-yun, Chuang Jin-Cai, Lian Jin-Lian. Social capital is deconstructed on the driving process of acquiring entrepreneurial knowledge - based on Entrepreneur's ability perspective. [J]. science of science and management of S. & T, 2016, 37 (1): 58-68.
 Wang Bin, Song Chun-xia. Shareholders’ Resources and Corporate Governance: A New Lens[J]. Financial Research. 2015 (1): 88-94.
 Yang Jun, Zhang Yu-li. The construction of social capital, entrepreneurial opportunity and early performance theory touch model and related research proposition [J]. Foreign Economics & Management. 2008, 30 (10): 17-25.
 Cockburn I M, MacGarvie M J. Patents, thickets and the financing of early‐stage firms: Evidence from the software industry[J]. Journal of Economics & Management Strategy, 2009, 18(3): 729-773.
 Dushnitsky G, Shaver J M. Limitations to interorganizational knowledge acquisition: The paradox of corporate venture capital[J]. Strategic Management Journal, 2009, 30(10): 1045-1064.
 Greenberg G. Small firms, big patents? estimating patent value using data on Israeli start‐ups’ financing rounds[J]. European Management Review, 2013, 10(4): 183-196.
 Haeussler C, Harhoff D, Mueller E. How patenting informs VC investors – The case of biotechnology[J]. Research Policy, 2014, 43(8): 1286-1298.
 Hall B H, Lerner J. The financing of R&D and innovation[J]. Handbook of the Economics of Innovation, 2010, 1: 609-639.
 Katila R, Rosenberger J D, Eisenhardt K M. Swimming with sharks: Technology ventures, defense mechanisms and corporate relationships[J]. Administrative Science Quarterly, 2008, 53(2): 295-332.
 Shane S, Cable D. Network ties, reputation, and the financing of new ventures[J]. Management Science, 2002, 48(3): 364-381.
Cite this article
Song Chunxia. Technological Start-ups’ Equity Financing: Technology Attracting Capital or Capital Pursuing Technology?[J]. Foreign Economics & Management, 2019, 41(3): 141-152.
Previous: How does a Name Enable the Success of a Business Model? A Case Study of the Bike-Sharing Business Model and Institutional Bricolage