Early-stage financing diversity and firms’ export intensity: a cross-country analysis

Drawing on data from the Global Entrepreneurship Monitor and a sample of more than 13,000 firms from 46 countries, we investigate the relationship between early-stage financing diversity and export intensity of both startups and established firms. We define early-stage financing diversity as the number of types of formal and informal external sources that provided the firm's seed capital. Based on the hypothesis that exporting is a risky and knowledge-based activity, we discover a positive relationship between early-stage financing diversity and export intensity. Notably, the study demonstrates that a country's financial development and degree of investor protection negatively moderate the baseline relationship.