Start-up business: analysis of the phenomenon in the initial funding and capital structure decisions

Abstract

Since the start of the history of human until modern days, some people have always wanted to change the average life conditions, creating or improving a product or a service, to change the way in which things were done since that moment: this people, with their inspirational and out of ordinary spirit, are the entrepreneurs. The aim of this work is to analyze the purposes and literature studies about the creation of a new business, that will be referred to as “start-up phenomenon” and the entrepreneurship figure linked with it. The figure of the entrepreneur, as will be introduced and described, is the key one for the formation of a new business, and in the chapter will be presented the main characteristics of a start-up, highlighting what differentiate them from established companies. The capital structure decisions and the start-up funding in the initial phase play a crucial role in the future profitability of the firm, starting with an analysis of different techniques: incubators, venture capital, business angels, crowdgunding, through the relation between startups and banks