Abstract

ABSTRACT Researchers widely agree on finance's vital role for tech startups, considering their diverse financial needs for growth and success. However, limited research investigates how financing impacts a tech startup's financial performance throughout its lifecycle. The existing literature lacks clarity on how various financial sources influence a tech startup's financial performance. This empirical study examines financing's impact on a tech startup's performance at a specific lifecycle stage, using primary and secondary data. Primary data, gathered through questionnaires and founder/CEO interviews with 93 tech startups in Bangalore, were analysed using Multiple Linear Regression and Boosting algorithms. The findings confirm the significance of financing at a given stage, but also reveal that the sources of financial infusion have varying effects. Given the importance of financing, the primary policy implication is to enhance the accessibility of financial sources for tech startups, particularly during their initial stages, fostering a robust startup ecosystem in India.

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