An Analysis of Sustainability and Financial State Within Capital-Seeking Startups
Wendelin, Alexander (2023)
2023
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Julkaisun pysyvä osoite on
https://urn.fi/URN:NBN:fi:amk-2023112832425
https://urn.fi/URN:NBN:fi:amk-2023112832425
Tiivistelmä
This bachelor’s thesis investigates capital-seeking startups through data collected during the screening process by Finnish Business Angel Network (FiBAN) during the three-year period 2020 to 2022, where early-stage ventures have sought funding from angel investors within the organization. This statistical analysis aimed to draw conclusions of both sustainability and financial state of said startups by analysing reported involvement in the United Nations Sustainable Development Goals, valuations, and profitability, and by analyzing the relationships of different variables within the data. The data was analysed both holistically and through segmentation, where startups were divided based geographic location.
The statistical analysis was supported by secondary research through academic literature which delves into the topics of early-stage ventures, business angels, sustainable business, and financial evaluation of startups. The study clarifies the roles these elements play in shaping the trajectory of nascent businesses while considering financial viability and societal impact. The role of angel investors in private equity and the criteria that governs their investments are examined.
The study determined four early-stage phases of startups: Idea stage, minimum viable product or seed stage, product-market fit stage, and scaling stage. These stages were used to compare findings of the primary data to investigate trends and divergences in valuation and profitability.
The results established that startups reported a strong involvement in Sustainable Development Goals, where majority of startups participated in one or more goal, the Nordics being the pioneers with greatest involvement. Goals three (Good health and well-being) and nine (Industry, innovation, and infrastructure) dominated in appearance in all regions. The analysis of financial metrics found valuations and profitability to increase through stages. The regression analysis determined a correlation between the size of the startup team and its reported valuation.
The study yielded practical results that have relevance and applicability to professionals and stakeholders in both public and private sectors, be it entrepreneurs, private equity, policy makers, researchers, organizations, or other.
The statistical analysis was supported by secondary research through academic literature which delves into the topics of early-stage ventures, business angels, sustainable business, and financial evaluation of startups. The study clarifies the roles these elements play in shaping the trajectory of nascent businesses while considering financial viability and societal impact. The role of angel investors in private equity and the criteria that governs their investments are examined.
The study determined four early-stage phases of startups: Idea stage, minimum viable product or seed stage, product-market fit stage, and scaling stage. These stages were used to compare findings of the primary data to investigate trends and divergences in valuation and profitability.
The results established that startups reported a strong involvement in Sustainable Development Goals, where majority of startups participated in one or more goal, the Nordics being the pioneers with greatest involvement. Goals three (Good health and well-being) and nine (Industry, innovation, and infrastructure) dominated in appearance in all regions. The analysis of financial metrics found valuations and profitability to increase through stages. The regression analysis determined a correlation between the size of the startup team and its reported valuation.
The study yielded practical results that have relevance and applicability to professionals and stakeholders in both public and private sectors, be it entrepreneurs, private equity, policy makers, researchers, organizations, or other.