Since the potential of a new venture can be found in the characteristics of the entrepreneurial team (ET), this study aims to understand which ET characteristics are valuable in the investment decision-making processes. Specifically, it seeks to classify the main signals sent to investors by the start-ups in terms of team characteristics, related to their human and social capital (HSC).
To obtain a comprehensive understanding of the main signals sent by the ET to investors in terms of their HSC, the authors developed a literature review based on Web of Science, scrutinised 270 research articles and proposed a conceptual framework.
The results have shown that the signallers (start-ups) usually send two kinds of signals about the ET characteristics: individual signals and aggregate signals, related to HC and SC, respectively. Overall, this review offered the opportunity to understand and interpret these signals in an integrated manner, by considering their combined effects rather than viewing them in isolation. Specifically, knowledge about ET characteristics is developed starting from an isolated perspective and ending in a combination of HC and SC.
This study aims to contribute to the advancement of research on the interpretation of the characteristics of ETs and on the financing decisions of a start-up. Moreover, the review emphasises the importance of considering the combined effect of the signals related to HC (individual signals) and SC (aggregate signals).
