In the start-up world, the disruptor is the cool kid on the block, the one who’ll change the world — or at least the products you’ll buy and how you buy them. She takes on the grown-ups in suits and shows us all how dumb they are. Customers love her because she makes them feel like rebels (with a cause), suppliers love her because she makes them look smart, and — most importantly — investors love her because she makes them feel they’re putting money into tomorrow’s big player.
Disruptive Startups Get Funding More Easily, but Less of It
Based on a study of 918 Israeli companies.
September 18, 2018
Summary.
A study of 918 startups in Israel seeking a first round of funding found that whether entrepreneurs emphasized the disruptive nature of their business influenced the funding they received. Specifically, the results showed that talking about a venture’s disruptive vision by one standard deviation improved the odds of that venture receiving early funding by 22%. But the venture would also very likely find that the amounts it would raise went down by 24% — for a typical Israeli venture that would mean getting $87,000 less in the Seed round, and $361,000 less in the series A round.