Proceedings of The 6th International Conference on Management, Economics and Finance
An analysis of the funding challenges that a start-up has to deal with and the impact that it can have on the future of the company
The aim of this research paper is to make an analysis of the funding options of start-ups. There are many new enterprises that may have brilliant ideas and products that they want to offer, but the process of turning an idea into a product is not easy. There are many challenges that a start-up can face and getting the funds that they need is one of their key challenges. Throughout this research paper, we want to see how startups deal with funding issues. We will have a look at the different funding options that they may choose to use and the ones that they are able to use because they do not always have the “privilege” to choose the funding option that they want. This will also help us see how these financial constraints “force” them in their decision-making process when it comes to choosing the best funding option. We found that there is a wide range of funding options for a start-up, like angel investors, loans, venture capital, crowdfunding, grants, accelerators, etc. The business idea itself, the business competition, the reputation of the founder, and the network of the founder are some of the key factors that determine the success or failure of the funding process. The funding option that start-ups choose to “use” can also have an impact on the future of the enterprise, as different funding options can have implications on the capital structure of the company and in the decision making process as well.
keywords: accelerator, angel investor, crowdfunding, venture capital