Yes, startups that seek to “disrupt” get more funding than those that just seek to “build” a business.
Since its HBR debut in 1995, the concept of disruptive innovation—the process by which a smaller company with limited resources is able to launch a product or service that displaces established competitors—has been extensively incorporated into startup vernacular. Entrepreneurs often use a version of the phrase when launching products, raising funds, unveiling strategies, hiring teams, and engaging partners.
Yet we do not know much about how entrepreneurs are integrating the concept into their identities and what consequences this has for their startups.
Research has previously shown that “entrepreneurial identity,” or how one defines and identifies with his or her entrepreneurial role, affects a startup’s ability to amass key resources. So we aimed to characterize entrepreneurs’ identities according to whether or not they referred to themselves and their startups using the language of disruption, and then we looked at how this affected their ability to attract and retain two types of critical resources: financial and human capital….
Read the full article in the Harvard Business Review.