In this paper we focus attention on the association between the organizational design and the mode of financing of entrepreneurial ventures. By means of a mixed-method study, we show that outside equity investors make entrepreneurial ventures’ Top Management Teams larger and more specialized after the investment. The presence of the outside equity investors also leads to greater delegation of decision authority within the Top Management Team. However, this effect varies depending on investors’ primary objective. When they have strategic objectives (in addition to financial objectives), the level of delegation in the Top Management Team increases. By contrast, outside equity investors with a primarily financial objective exercise greater control over entrepreneurial venture’s decisions, by reducing delegation.
Vincenzo Butticè is assistant professor at the School of Management of Politecnico di Milano, where he got is PhD in Management, Economics and Industrial Engineering. Vincenzo has been a visiting scholar at the Copenhagen Business School, and at the Indiana University Purdue University of Indiana. His research interests are in the area of entrepreneurial finance and sustainable entrepreneurship. Vincenzo is lecturer of entrepreneurial finance at the MIP school of management. He teaches entrepreneurial finance, and energy economics at Politecnico di Milano.