Corporate Finance: Financing Preferences of Startups

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Corporate Finance: Financing Preferences of Startups
Paula Kokare, Project Manager, Switzerland, Premium Member
Small firms, especially startups, face significant difficulties acquiring external funds due to various reasons. Unlike mature firms.
Sanyal and Mann (2010) researched 4200 US based start-ups to determine financing specifics of new enterprises. Overall, startups were observed to make use of bootstrapping, owners' internal equity and short term debt, such as overdraft and credit card debt, as the primarily source of funding. The authors proved certain characteristics determine the capital structure of new ventures:
  1. TANGIBLE ASSET BASE: Startups with higher tangible capital bases will have better access to and higher usage of external de...Sign up

Startup Capital
Charles Alter, Consultant, United States, Member
I attended a talk this week by Steve Wozniak, founder of Apple Computer along with Steve Jobs. He was asked what advice he would give to startup compa...Sign up

Atanacio Muñoz, Pachuca, Hidalgo. Mèxico
Atanacio, Professor, Mexico, Member
Dear colleagues, we can say that analysis by business experts shows that in terms of growth and prior debt these factors are very important and largel...Sign up


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