Sales · Empirical study combining secondary firm data and startup survey data
Should B2B Start-ups Invest in Marketing?
Industrial Marketing Management · 2024
Summary
Systematic marketing investment was associated with higher valuation for early-stage B2B startups, while effects varied by customer type and development stage.
For your marketing
Possible founder application
One of the few studies directly about B2B startups. It challenges the assumption that early startups should avoid systematic marketing, but does not prescribe a channel or spending amount.
Reported result
What the study found
Systematic marketing investment was associated with higher valuation for early-stage B2B startups, while effects varied by customer type and development stage. The authors report that more than half of early-stage B2B startups in their data did not invest in systematic marketing.
Research question
What the authors investigated
How does systematic marketing relate to startup valuation across B2B versus B2C firms and early versus later development stages?
Design
Empirical analysis combining secondary firm data with a separate survey validation study, informed by managerial interviews and signaling theory.
Sample and setting
Main study of 202 startups with firm, financial, and industry data; validation study of 377 startups.
Scope and transfer
Limitations to keep in view
The accessible abstract does not state limitations. Firm valuation is not the same as near-term acquisition, and the findings are conditional on the included startups and modeling approach.
Research sources
ScienceDirect publisher abstract retrieved with Firecrawl; sample sizes and moderator pattern were visible on the page.