Resource mobilization and the utilization of social capital in entrepreneurs’ fundraising processes in nascent search fund markets
研究新兴搜索基金市场中创业者如何通过两阶段筹资过程，利用社会资本从本地非正式投资者和正式国际投资者处获取互补资源，对创业者和投资者有参考价值。
Purpose This study investigates how international search fund (SF) entrepreneurs in nascent markets mobilize financial and human capital, with a particular focus on the role of social capital in their fundraising efforts. Design/methodology/approach The study employs an inductive, qualitative approach, drawing on 26 semi-structured interviews with SF entrepreneurs from 16 nascent SF markets. The analysis is supplemented by archival materials and expert interviews with formal SF investors for both validation and triangulation purposes. Findings The study reveals a two-stage fundraising process where local informal investors provide initial funding and credibility, enabling entrepreneurs to attract formal international SF investors with specialized expertise. In doing so, SF entrepreneurs aim for the mobilization of complementary resources from these investor groups. Social capital plays a key role in facilitating this process by signaling credibility to foreign investors. Research limitations/implications This research contributes to the RBV literature by examining how search fund entrepreneurs in nascent markets leverage social capital through a two-staged fundraising process to secure complementary resources from local and international investors for establishing their search funds. The study’s qualitative nature limits generalizability but offers rich, contextual insights. Further research could quantitatively test the generalizability of these findings across different markets. Practical implications Entrepreneurs in nascent SF markets are recommended to leverage local social networks and informal investors to increase credibility and attract international investment. Originality/value This study contributes to the theory and practice of entrepreneurship-through-acquisition (ETA) by emphasizing the critical role of social and local investor capital in resource mobilization. It also extends the resource-based view (RBV) into the context of nascent SF markets.