Entrepreneurs’ Access to Venture Capital in Moroccan’s Technology-Based Ventures: An Exploratory Study of the Role of Social Capital
Brahim Bouzahir, Ahmed Chakir

Abstract
This paper aims to explore how do the structural and relational social capital configurations of entrepreneurs influence their ability to get access to financial sources directly and under which conditions they do (have to) rely on third-parties on higher-risk investments? A semi-structured interview with a short questionnaire was adopted and six technology-based new ventures were selected that shared some common characteristics from an initial shortlist of 10 technology-based ventures backed or not by Moroccan venture capitalists. Our findings show that social capital of entrepreneurs seems to have positive effect, although indirectly, on higher investment decisions facing more risks, typically venture capitalists investment. The effects of social capital, sense-making as favorable anticipation, are contingent on specific characteristics of third-parties involved in venture capitalists funding process rather than on just that of their entrepreneurial teams. Also, results show the optimal scenario when new venture able to get access to financial sources directly and under which conditions they do (have to) rely on thirdparties involved in venture capitalists investment decision process. However, the validity of exploratory research rests on the concept of theoretical saturation, we cannot definitively claim for it with six cases with 19 external financial sources because interview with entrepreneurs is not sufficiently refined to detect unless social capital of entrepreneur can have effects on venture capitalists’ investment decisions. The extension to high technologies is the most natural step, moving to other low-risk industries is possible with the same kind of research protocol. Finally, this study contributes to the new venture’s social capital and venture capital literature by providing an optimal combination of these two approaches. It also clearly points to the complementary nature between the social capital and contingency approach to study and explain the complex reality of equity capital, especially venture capital financing.

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