Social networks and the acquisition of resources by technology-based new ventures

Our proposed model focuses on the relationship between specific components of an entrepreneur's social network and the acquisition of three key resources (human capital, financial capital, and alliances) needed for a technology-based new venture to reach the stage of commercialization. Specifically, we disaggregate the social network of founders into four specialized sub networks: academic, industry, finance, and family and highlight the benefits of each for resource acquisition. We then discuss strength of ties versus breadth of contacts in relation to the acquisition of resources. Social network theory is used to explain the model.