Helder Marcos Freitas Pereira
Master's – Institutions and Meso-Instiutions in the Financing of Startups
Advisor: Profª Drª Maria Sylvia Macchione Saes
Comission: Profs. Drs. Adriana Marotti de Mello, Matheus Albergaria de Magalhães and Paula Sarita Bigio Schnaider
Class: 217, FEA-5
The financing of newly established companies has been greatly modified by the advent of new technologies. Software and computer innovation, especially since the turn of the century, have led to a huge reduction in the costs of creating new products and services (Shane and Nicolaou, 2017). Considering that assets are heterogeneous, that is, they are formed by multiple attributes (Barzel, 1997), technological change has largely reduced the costs of removing these attributes from the public domain, despite the costs of marketing these products having remained the same. Given this panorama, the financing of startup firms is a key element for the segment's performance. Given the importance of the theme, the main objective of this research is that of verifying which factors are responsible for explaining different results in relation to the financing environment. In light of the institutional theory by North (1990), understood as the formal and informal rules of a society and the meso-institutional approach by Menard (2014), which understands that there are intermediate layers between the macro institutional level and the institutional level, we intend to achieve the objectives of this research. Thus, the main hypothesis in this study is that institutions and meso-institutions are important to explain the results regarding the financing of startups. This research is of quantitative and qualitative nature and is divided into two chapters. In the first chapter, we intend to analyze how norms and rules influence entrepreneurship of opportunity, firm innovation, financing through the stock market and the availability of venture capital. In Chapter 2, in light of Mernard's (2014) work, the role of the meso-institutions in the financing of startups is explored. This chapter is divided into three parts: in the first we analyze the role of meso-institutions with a bottow-up perspective, in the second section we analyze incubators as meso-institutions responsible for assisting startups in obtaining resources and in the last part we explore incubators as a means of boosting innovation and obtaining resources through development programs. Finally, we conclude that institutions are significant factors to explain the tested variables and that meso-institutions matter to explain different results within the same institutional framework.
*Abstract provided by the author