Positioning for Success: How Tech Entrepreneurs in Kenya Strategically Frame Startups to Secure Venture Capital from Developed Economies.

Abstract: This paper investigates the strategic framing approaches implemented by tech entrepreneurs in developing economies to attract financing from venture capital (VC) firms in developed economies. The study addresses the limited research in the field of entrepreneurship, specifically focusing on entrepreneurs’ subjective perspectives on strategically framing their startups to secure VC investment from developed economies. Additionally, it aims to make an initial contribution by exploring how these tech entrepreneurs in developing economies strategically frame their start-ups to attract VC funding from developed economies. The research methodology involves conducting semi-structured interviews with tech entrepreneurs who have successfully attracted VC financing through strategic framing.By analysing the interview data, we dive into the strategic framing approaches utilized by these tech entrepreneurs, with a particular emphasis on entrepreneurs in Kenya as the sample case, to secure financing from VC firms in developed economies. The insights shared by the interviewed tech founders highlight the crucial factors they strategically consider when framing their startups to attract VC financing. This strategic framing process involves extensive research, multiple iterations of pitch decks, metrics, and legal frameworks for a startup to raise VC financing. This study provides valuable insights into how entrepreneurs strive to understand venture capitalists’ perceptions of the Kenyan tech startup landscape and the criteria VC firms seek prior to making investments. Such knowledge empowers startup founders to position themselves strongly in terms of financial opportunities during the scaling and shaping phases of their tech startups. It is important to note that this study focuses on a small group of tech entrepreneurs in Kenya and may not capture potential industry, cultural, geographical, and personal variations. Nevertheless, it represents an initial attempt to explore the framing strategies of these startups when raising VC investments.