Reframing the ideal investor through entrepreneurial experience

Haq, Isaac and Soetanto, Danny (2026) Reframing the ideal investor through entrepreneurial experience. Management Decision, 64 (13). pp. 17-41. ISSN 0025-1747

Abstract

Purpose This study examines how entrepreneurial experience shapes perceptions of the ideal investor in the technology-based sector. While previous research has primarily focused on how investors evaluate entrepreneurs, this study shifts the lens to explore how entrepreneurs assess investor attributes. It investigates how experience in securing funding and building ventures influences expectations around value-added contributions beyond financial investment. Specifically, the study explores whether experience leads entrepreneurs to adopt a more strategic and values-driven approach, placing greater emphasis on ethical alignment, expertise, and relational quality, while placing less importance on operational involvement and financial oversight. Design/methodology/approach This study adopts a quantitative research design using survey data from 195 entrepreneurs in the technology-based sector. Participants were recruited through entrepreneurial and investor networks across multiple countries. The survey captured key aspects of entrepreneurial experience, including fundraising and venture development, alongside expectations of investor roles and attributes. Factor analysis identified dimensions of value-added investor support, and k-means clustering was used to group entrepreneurs based on preference profiles. Multinomial logistic regression and OLS regression analyses were conducted to examine how different types of experience influence entrepreneurs' preferences for specific investor attributes and types of support. Findings The results show that entrepreneurial experience plays a significant role in shaping expectations of investor involvement. Entrepreneurs with more experience in fundraising and venture development tend to prioritize ethical conduct, strategic input, and relational alignment over traditional factors like financial returns or past performance. They value investor support focused on strategy, networks, and governance, while placing less importance on operational or financial oversight. Cross-sector experience further reinforces a preference for strategic-driven supports. Overall, the findings suggest that experience increases entrepreneurs' confidence and selectivity, encouraging a more strategic approach to building investor relationships. Research limitations/implications This study has several limitations. First, the data were collected primarily from entrepreneurs in developed countries with well-established venture capital markets, which may limit the generalization of the findings to emerging or less mature ecosystems. Second, the target population is difficult to define precisely, given the informal and decentralized nature of entrepreneurial networks. Third, the reliance on self-reported survey data introduces the possibility of response bias. Additionally, the cross-sectional design limits the ability to draw causal inferences. Future research could benefit from longitudinal data and broader geographic representation to better capture variation across different entrepreneurial contexts. Practical implications The findings provide actionable insights for both entrepreneurs and investors. As entrepreneurs gain experience, they become more selective, favouring investors who offer strategic guidance, ethical alignment, and relational support over purely financial backing. For investors, this highlights the importance of articulating non-financial value, such as expertise, governance input, and network access, to appeal to more experienced founders. Investors who position themselves as collaborative partners rather than controllers may build stronger, longer-lasting relationships. Entrepreneurial support programs, including accelerators and incubators, can also use these insights to prepare founders to identify and engage with strategically aligned investors. Social implications This study highlights the growing importance of trust, ethical conduct, and shared values in shaping effective entrepreneurial ecosystems. As entrepreneurs gain experience, they increasingly prioritize relational quality and strategic alignment in their investor relationships. This signals a broader shift toward more collaborative, purpose-driven engagement between founders and investors. Such a shift has the potential to foster healthier power dynamics, reduce misalignment and conflict, and support the formation of long-term partnerships grounded in mutual respect and shared vision. These findings contribute to ongoing discussions around responsible entrepreneurship and the sustainability of venture growth. Originality/value This study offers a novel contribution by shifting the focus from how investors assess entrepreneurs to how entrepreneurs evaluate potential investors. It addresses an under explored area in entrepreneurial finance, particularly highlighting the role of ethical behaviour and strategic alignment in investor selection. By examining how experience shapes these expectations, the study adds to the limited literature comparing novice and experienced entrepreneurs in their interactions with external stakeholders. It advances understanding of founder–investor dynamics and offers fresh insights into how entrepreneurial learning influences decision-making in the context of venture growth and funding relationships.