THE ECONOMICS OF STARTUP BUSINESS FINANCE: AN INVESTIGATION THROUGH THE LENS OF FINANCIAL GROWTH CYCLE THEORY

Yesubabu Konga () and Kasilingam Ramaiah ()
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Yesubabu Konga: Pondicherry University
Kasilingam Ramaiah: Pondicherry University

Bulletin of Monetary Economics and Banking, 2023, vol. 26, issue 2, 311-332

Abstract: The provision of finance is the key to the survival and success of new firms. The current paper examines the startup firms’ finance acquisition through the viewpoint of financial growth cycle theory. We used chi-square and Mann-Whitney U tests to examine our hypotheses. Our study uses data from 386 Indian startup entrepreneurs over the period 2019 – 2021. Our results show that the startups access angel finance significantly in the initial years and the venture capital, banks and NBFCs in their later stage of life. Our findings argue that Indian startups partially follow the financing patterns proposed by the financial growth cycle theory.

Keywords: Startup finance; Financial growth cycle theory; Indian startup entrepreneurs; Startup firm stages (search for similar items in EconPapers)
JEL-codes: G32 M13 O16 (search for similar items in EconPapers)
Date: 2023
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Persistent link: https://EconPapers.repec.org/RePEc:idn:journl:v:26:y:2023:i:2e:p:311-332

DOI: 10.59091/1410-8046.2071

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