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We are pleased to announce that Professor Neil Pollock has been awarded funding from funding scheme. The funding will support an exciting project exploring how Digital Start-Ups Must Navigate The Endorsement Economy to Scale.

The UK is one of the leaders in promising new digital ventures worldwide. However, there are concerns that many will fail. The aim of Prof Pollock’s project is to foster a discussion around a pivotal evaluative hurdle that influences the ability of new digital ventures to prosper. One thus far unrecognised factor influencing whether a new digital venture can grow is the backing of industry analysts. There is anecdotal evidence that those ventures endorsed by these important market actors receive a significant boost and, conversely, where this form of backing is not forthcoming, it becomes a block or impediment to progress: analysts wield influence over technology adopters and investors regarding their choice of technology vendors.

We term this hurdle the ‘second most important pitch‘. We will analyse the ‘pitches’ made by new digital ventures to analyst firms and investigate how the analysts subsequently assess the venture’s viability and potential as compared to other players. While much has been written about the first equity pitch a start-up will make to an investor, little is known about how ventures make these second important pitches to analysts to win their endorsement. Understanding just what is expected in these second pitches and how they are evaluated will make a key contribution to academics, policymakers and those directing and supporting digital ventures.

To analyse these pitches we draw on the emerging specialism of ‘Valuation Studies’ (which is the application to market situations of analytical techniques borrowed from Science and Technology Studies, Sociology of Finance, and Economic Sociology). We will extend this current work through conceptualising these pitches as part of an ‘endorsement economy’. This idea captures not only that market actors provide assurances about the viability or value of a venture, but how/whether they play a key role in helping to realise that value through ‘championing’ a venture. This conceptualisation also lays the groundwork for a potential new area of study within Digital Entrepreneurship.

This study will identify the factors that lead to certain ventures being endorsed and others not, and provide insights into policy and practical options that might help ventures to gain maximum traction with these vital market actors. To publicise our findings, we will implement a detailed engagement and dissemination strategy that includes running a ‘Continuing Professional Development’ course and contributing to an ‘industry masterclass’. Finally, we will also produce four journal articles, two newspaper articles, a journal special issue, and a book.

Get in touch with Professor Pollock if you want to learn more about this research or discuss it further.