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Growth-oriented start-ups- Factors influencing financing decisions
Jönköping University, Jönköping International Business School.
Jönköping University, Jönköping International Business School.
2012 (English)Independent thesis Advanced level (degree of Master (One Year)), 10 credits / 15 HE creditsStudent thesis
Abstract [en]

This paper focuses on identifying factors influencing the financing decisions of growth-oriented start-ups. A sample of 8 business incubator start-ups has been studied within a qualitative research so as to reach that goal. Their fundraising choices are analyzed using supporting financial and psychological theories. Also, the thesis examines the start-ups’ interaction with a business incubator and investors.It is found that growth oriented start-ups use internal funds in the first instance, the lack of financial capital representing the main reason behind this decision. Moreover, it is clear that bank loans are not a viable alternative for start-ups mainly because of the collaterals required. However, debt financing, coming from more accessible sources, is used despite the higher costs, this if it helps in achieving growth. Lastly, equity capital is regarded positively by growth oriented start-ups although it dilutes the control. The reasoning is that control is traded-off with the skills and experience the external investors bring in once with their investments.

Place, publisher, year, edition, pages
2012. , p. 41
Keywords [en]
start-ups' financing decisions, business incubator, POH, Self-determination
National Category
Business Administration
Identifiers
URN: urn:nbn:se:hj:diva-18439OAI: oai:DiVA.org:hj-18439DiVA, id: diva2:533410
Presentation
, Jönköping
Uppsok
Social and Behavioural Science, Law
Supervisors
Examiners
Available from: 2012-07-06 Created: 2012-06-13 Last updated: 2012-07-06Bibliographically approved

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CiteExportLink to record
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Citation style
  • apa
  • ieee
  • modern-language-association-8th-edition
  • vancouver
  • Other style
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Language
  • de-DE
  • en-GB
  • en-US
  • fi-FI
  • nn-NO
  • nn-NB
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  • Other locale
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Output format
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