Cloud computing start-ups and emerging technologies from private investors’ perspectives

Yu Cong, Hui Du, Miklos A. Vasarhelyi

Research output: Contribution to journalArticlepeer-review

Abstract

We examine private investors’ funding preferences for cloud computing start-ups that provide services in various information technology (IT) areas. The funding preference is measured in funding size and frequency. Using data from CrunchBase, an unconventional dynamic database, we find significantly positive associations between the funding preference and the cloud computing services provided in IT security, and Big Data and data analytics among cloud computing start-ups that have received at least two rounds of funding. The association is negatively significant when the cloud computing services are provided in ERP systems and when the funding preference is measured only in size. The results suggest that private investors differentiate among start-ups by specific technology and the lifecycle of the technology. During the sample period of rapid growth in the cloud computing industry, we document that the funding preference by private investors favors start-ups that provide services in critical, newer, and fast-growing IT areas.

Original languageEnglish (US)
Pages (from-to)47-64
Number of pages18
JournalJournal of Information Systems
Volume35
Issue number1
DOIs
StatePublished - Mar 1 2021

All Science Journal Classification (ASJC) codes

  • Management Information Systems
  • Software
  • Information Systems
  • Accounting
  • Human-Computer Interaction
  • Information Systems and Management
  • Management of Technology and Innovation

Keywords

  • Cloud computing
  • Emerging technologies
  • Private investors
  • Start-up companies

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