Private equity and startup financing: navigating private equity investments in startup companies
Keltanen, Kalle (2023)
2023
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Julkaisun pysyvä osoite on
https://urn.fi/URN:NBN:fi:amk-2023121738016
https://urn.fi/URN:NBN:fi:amk-2023121738016
Tiivistelmä
This thesis investigates the intricate world of private equity and its fundamental concepts, focusing on effective strategies for startups seeking investments in the segment. In era marked by high entrepreneurial enthusiasm, success stories and increasing need for innovative financial solutions, private equity has emerged as a golden ticket for startups to lift them into success. The objective of the thesis was to research the essential and unique characteristics of the private equity landscape and to identify the best methods gaining advantages for startups to attract private equity investments.
The study begins by providing an in-depth exploration of the private equity segment, outlining its core principles, market dynamics and the structures of private equity companies and funds. It sheds light on the vast array of challenges and possibilities startups face as they navigate the private equity landscape, including issues of valuation, risk assessment and investor relations.
By conducting a comprehensive review of existing literature and case studies, this thesis gives insights on the mechanics of investors in the private equity segment and their fundraising process as well as the common practices they use to evaluate the investment potential of startups. The study underlines the importance of compelling business plan, adopting the practices investors use in their due diligences, perfecting the negotiation techniques and finding the unique characteristics of the company to attract investors’ interests. It highlights the necessity of provable credibility of a startup company to attract the potential investors.
The paper presents an analysis of the private equity landscape from the perspective of both the investors in the segment and the companies seeking for investments. Study offers preliminary information about the segment for the first-timer entrepreneurs who seek to gain basic overview of the private equity investments and offers ideas for optimal strategies to secure private equity investments. By giving these insights and addressing the key aspects, startups can enhance their ability to secure investments, thus accelerating their growth into the success all dream of.
The study begins by providing an in-depth exploration of the private equity segment, outlining its core principles, market dynamics and the structures of private equity companies and funds. It sheds light on the vast array of challenges and possibilities startups face as they navigate the private equity landscape, including issues of valuation, risk assessment and investor relations.
By conducting a comprehensive review of existing literature and case studies, this thesis gives insights on the mechanics of investors in the private equity segment and their fundraising process as well as the common practices they use to evaluate the investment potential of startups. The study underlines the importance of compelling business plan, adopting the practices investors use in their due diligences, perfecting the negotiation techniques and finding the unique characteristics of the company to attract investors’ interests. It highlights the necessity of provable credibility of a startup company to attract the potential investors.
The paper presents an analysis of the private equity landscape from the perspective of both the investors in the segment and the companies seeking for investments. Study offers preliminary information about the segment for the first-timer entrepreneurs who seek to gain basic overview of the private equity investments and offers ideas for optimal strategies to secure private equity investments. By giving these insights and addressing the key aspects, startups can enhance their ability to secure investments, thus accelerating their growth into the success all dream of.