From experience to action: The role of business models in nascent technology ventures

In this study, we examine the role of business model development in venture emergence, proposing that business models serve as cognitive schemas that translate prior entrepreneurial experience into startup action. Using a unique dataset of nascent technology ventures, we find that business model development significantly facilitates a venture’s startup progress and also fully mediates the relationship between the founder’s startup experience and venture progress. Further, our results indicate that more developed business models significantly increase the speed with which nascent technology ventures attract external resources. Our findings contribute to the literatures on new venture emergence, business models, and human capital.