Singh, S and Subrahmanya, MHB (2021) The propensity of a tech startup to approach a financial source: an analysis of its determinants over the lifecycle. In: 11th Annual International Conference on Industrial Engineering and Operations Management, IEOM 2021, 7-11 Mar 2021, pp. 2892-2906.
Full text not available from this repository.Abstract
Approaching and accessing appropriate sources of finance are among the significant challenges for a tech startup throughout its lifecycle. However, entrepreneurial finance literature lacks clarity on the factors driving a tech startup to access a particular source of finance. This study contributes to the entrepreneurial finance literature by ascertaining the factors leading a tech startup to approach a financial source and investigating how these factors vary over its lifecycle. Binary logistic regression algorithm was employed to analyse the research objective on the primary and secondary data collected from 93 tech startups in Bangalore. Our results indicate that a tech startup�s choice for a financial source varies with its financial requirements. We identified three significant natures of financial requirements: Human Capital (HC), Research Capital (RC), and Social Capital (SC). Of these three, the financial requirement to acquire RC is financed by most investors, including both early stage investors (Business Angel (BA)) and growth stage investors: Corporate Venture Capital (CVC) and Private Equity (PE) firm. However, the requirement to acquire HC and SC predominantly lead a startup to approach a Venture Capital (VC) firm. © IEOM Society International.
| Item Type: | Conference Paper |
|---|---|
| Publication: | Proceedings of the International Conference on Industrial Engineering and Operations Management |
| Publisher: | IEOM Society |
| Additional Information: | The copyright for this article belongs to IEOM Society |
| Department/Centre: | Division of Interdisciplinary Sciences > Management Studies |
| Date Deposited: | 03 Dec 2021 08:19 |
| Last Modified: | 03 Dec 2021 08:19 |
| URI: | http://eprints.iisc.ac.in/id/eprint/70179 |
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