Lifecycle of technology start-ups and characteristics of individual stages: New Theoretical Framework

Abstract

Purpose of the article To develop a marketing strategy research on technology start-ups depending on their lifecycle, it is necessary to create a theoretical framework for the division of stages of the technology start-up lifecycle. In the professional environment, it is impossible to find a unified idea of the technology start-up lifecycle and therefore it is impossible to observe the differences in the individual stages of the technology start-up lifecycle with respect to other scientific disciplines. The start-up environment is a global phenomenon, yet there is a lack of relevant resources related to lifecycle issues in this research area.

Methodology/methods Based on the research of secondary sources, a theoretical framework of the stages of the technology start-up lifecycle will be developed by evaluating, comparing, and critically assessing different sources and theories. Particular emphasis is placed on tracking the correlated information provided by each source and its application to the newly proposed theoretical framework of the technology start-up lifecycle.

Scientific aim The aim of the article is to propose a theoretical framework of the technology start-up lifecycle as a basis for further research. The individual stages will be divided according to financing sources, risk level, type of customers, product advanceness, output size and others. The output is represented by a graphical representation of a possible approach to the division of stages of the technology start-up lifecycle and their more detailed characteristics.

Findings Based on the analysis of secondary sources, we have defined a possible comprehensive approach to the division of the technology start-up lifecycle. There are five stages divided into the pre-seed / idea stage, seed / launch stage, growing / scaling stage, maturity stage, exit / IPO / acquisition stage. Each stage is defined in more detail and a theoretical framework for a comprehensive conception of the technology start-up lifecycle is developed.

Conclusions The topic of technology start-ups and the lifecycle is underresearched. A large part of the publications consists of business literature and online resources. Establishing a comprehensive theoretical framework will help to qualify the individual stages from multiple perspectives and their application in the future. Defining lifecycle stages and creating a new theoretical framework are beneficial for further research, where differences can be observed and possible approaches can be suggested in areas such as marketing or sales depending on the stage in the technology start-up lifecycle.

Keywords: technology start-up, software start-up, start-up lifecycle, start-up funding, start-up stages, start-up development

JEL Classification: M13, O32