Pivoting as a necessary strategy in startup development: a literature perspective and the Econova-AI case

This thesis investigates strategic pivoting as a fundamental capability in the lifecycle of startups, examining its theoretical foundations, determinants, and practical implications. It explores how founding dynamics, early funding strategies, and evolving environmental conditions interact to shape a venture’s capacity to adapt its business model in response to market, technological, and regulatory changes. While the existing literature often treats founding, financing, and pivoting as isolated phenomena, this work argues for an integrated perspective, demonstrating how their interplay determines a startup’s long-term adaptability. Through an extensive literature review, the study develops a conceptual framework linking founding decisions and resource acquisition strategies to pivoting success. This framework is then applied to the case of Econova-AI, an Italian deep-tech startup operating at the intersection of artificial intelligence and sustainability regulation. Econova-AI’s evolution, from an ESG reporting platform to broader AI-driven sustainability solutions, Illustrates how ventures can leverage strategic pivoting to navigate regulatory uncertainty, shifting customer needs, and resource constraints. The research contributes both theoretically and practically: it enriches the academic understanding of pivoting as a core entrepreneurial capability and provides actionable insights for entrepreneurs, investors, and policymakers. By emphasizing the need to design for adaptability from the outset, this thesis highlights pivoting not as a sign of failure, but as a deliberate, necessary, and value-creating process in the development of successful startups.