Early-Stage and Debt-Free Startups

Roberto Moro-Visconti ()
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Roberto Moro-Visconti: Catholic University of the Sacred Heart

Chapter Chapter 8 in Startup Valuation, 2024, pp 337-362 from Springer

Abstract: Abstract This chapter analyzes the financial dynamics of early-stage, debt-free startups, emphasizing their reliance on equity financing due to their inability to secure traditional debt. It highlights the critical role of cash flow forecasting in ensuring survival and growth, providing a structured approach that combines EBITDA, changes in net working capital, and CAPEX to estimate runway cash flow. The analysis underscores the importance of integrated financial systems and strategic liquidity management, offering practical insights for startup founders and investors. By addressing key research gaps, the chapter provides valuable tools for startups to navigate their initial phases successfully, ultimately contributing to innovation and economic growth in the startup ecosystem.

Keywords: Monetary equity; Market traction; Runway; Scalability; Digitalization; Growth opportunities; Real options; Unicorns (search for similar items in EconPapers)
Date: 2024
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Persistent link: https://EconPapers.repec.org/RePEc:spr:sprchp:978-3-031-77469-0_8

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DOI: 10.1007/978-3-031-77469-0_8

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