The entrepreneurship literature suggests that network ties are useful in mitigating the problem of information asymmetry faced by entrepreneurs when acquiring resources at the early stage of venture creation. We introduce prior knowledge of resource owners as an inverse measure of information...

This article identifies and classifies the problems perceived by entrepreneurs when they use social network ties (direct and indirect ties) to acquire resources during the early stages of new venture formation process. On the basis of field interviews with 128 high-tech entrepreneurs in...