The development of a strong organizational identity (OI) is an important determinant of new venture success. Using a longitudinal research design and hierarchical linear modeling with data on 1,830 responses of 696 members of 98 ventures we find that a clearer organizational vision and a less hostile environment facilitate the development of a strong OI in young ventures. We also find that the OI-threatening effect of negative events depends on the source of the feedback event. We discuss the implications of these findings for the entrepreneurship literature.