New Publication: The Emergence of Financial Communication in Start-ups

„The emergence of the financial communication function: exploring investor relations in start‑ups“ published in the Journal of Communication Management. The authors Christian Pieter Hoffmann, Lea Knabben, and Torben Krüper provide the first in-depth insights into how financial communication develops in young companies.

Background and Research Question
The study explores how investor relations (IR) functions emerge in start-ups – from a neo-institutionalist perspective. It focuses on the expectations of investors such as venture capitalists, business angels, and corporate venture capitalists, and their influence on the professionalization of IR in the start-up environment.

Methodology
The research is based on two qualitative interview studies conducted between 2022 and 2023, involving 34 representatives of German start-ups at various growth stages, as well as 15 investors.

Key Findings

  • Investors dominate the organizational environment, supported by peer influence and service providers.
  • The IR function undergoes a clear professionalization process, depending on the respective growth stage of the company.
  • A decisive factor: the changing structure of investors across funding rounds, which significantly drives the evolution of financial communication.

Significance of the Study
This is the first study to explicitly analyze the emergence of a financial communication function in start-ups. It thereby bridges the fields of investor relations research and entrepreneurship communication.

Read here: https://www.emerald.com/jcom/article-abstract/doi/10.1108/JCOM-12-2024-0243/1275902/The-emergence-of-the-financial-communication?redirectedFrom=fulltext