Financial Avenues for Start-Ups
DOI:
https://doi.org/10.21095/ajmr/2022/v14/i1/171532Keywords:
Start-ups, funding, KITVEN, Meesho, Government of KarnatakaAbstract
Many start-ups and unicorns having headquarters in Bangalore city of India has topped the charts in the world with the highest number of start-ups and unicorns. Bangalore is known as Start-up and Unicorn capital of India belonging to various sectors of the industry. However, for entrepreneurs or founder of a company to succeed with the business idea and accelerate in their businesses, there is a huge requirement and demand to raise the capital for various activities like conceptualization, hiring team, marketing, finance and accounting and administrative works. Therefore, this paper is a desk research with an aim to identify financial avenues for emerging start-ups and unicorns. This paper also guides for future entrepreneurs on the existing financial funding sources in Karnataka who has a plan, a proposal or a vision to transform their concepts or ideas and begin their dream company one day. By reviewing numerous literatures, the paper summarizes insights for options on acquiring the financial capital for a company from self-funding, friends/family, start-ups incubators, venture capital firms, angel investors, etc. The paper also describes the Government of Karnataka support to start-ups in various sectors such as Semiconductor venture fund, KITVEN fund, Bio venture fund, AVGC venture fund, IDEA2POC grant. Start-ups are formed in different sectors such as FinTech, EdTech, Enterprise Tech, E-commerce, agriculture and many. The investment for a start-up corresponds to the level of its operational activities: Ideation, Validation, Early Traction and Scaling. The paper also estimates the strengths, Weakness, Opportunities and Challenges for start-up funding in Karnataka, India.References
Achibane, Mustapha & Tlaty, Jamal. (2018). The Entrepreneurial Finance and the Issue of Funding Start-up Companies. European Scientific Journal. 14. 10.19044/esj.2018.v14n13p268.
Aggarwal, Saumya and Gupta, Pooja, Study of Unicorn Start-Ups Management and Profitability (September 7, 2018). Available at SSRN: https://ssrn.com/abstract=3245938 or http://dx.doi.org/10.2139/ssrn.3245938 3.
Čalopa, M.K. & Horvat, J. & Lalić, M.. (2014). Analysis of financing sources for start-up companies. Management (Croatia). 19. 19-44.
Cumming, Douglas J. and Johan, Sofia A., The Problems with and Promise of Entrepreneurial Finance (August 1, 2017). Strategic Entrepreneurship Journal, Forthcoming, Available at SSRN: https://ssrn.com/abstract=3020439 5.
Moritz, Alexandra & Block, Joern. (2016). Crowdfunding: A Literature Review and Research Directions. 10.1007/978-3-319-18017-5_3.
Dwivedi, Ritesh. (2019). Indian Startups: Analyzing Their Vulnerabilities and Prevailing Challenges. SMS Journal of Enterpreneurship and Innovation. 6. 10.21844/smsjei.v6i01.17665.
Kumar, Dr. Gopaldas. (2018). Indian Start-ups- Issues, Challenges And Opportunities, Conference: Indian Startup Ecosystem - Challenges and Opportunities at Hyderabad.