Modelling Start-up Funding and its Determinants in Indian Context

Abstract

How business start-ups are financed is one of the most fundamental questions of enterprise research as financial capital is one of the necessary resources required for enterprises to form and subsequently operate. Capital decisions and the use of debt - equity at start-up have important implications for the operations of business, risk of failure, firm performance, and the potential of business expansion in future. Studies highlight that organizational structure, operational structure, geographical funding, social media, past funding, etc. are potential parameters influencing funding decisions. While research examining the financing of start-ups has been increasing, there is still limited understanding in Indian start up context, particularly in comparison to financing choices for large and existing firms. Thus, study attempts to explore the critical underlying determinants for funding of start-ups and to investigate their impact on start-ups funding in Indian ecosystem.