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How to start a company? Analysis of three start-up companies in Finland : ClipMe, JerryBag and Tutor Tigers
Start-up is becoming a trend in the current economy condition while huge and global companies are still not a safe place. However, there are not so many start-ups that have succeeded in their paths. Majority of failures come from financing aspects of start-up in the early stage.
This paper studies the effective financing methods for start-ups in general. The thesis aims to construct and consolidate theories around financing topic in order to offer recommendations after the finding. The thesis reviews start-up company, capital needed for start-ups, sources of financing, and process. Qualitative researches based on interview techniques were conducted, which was then combined with pattern matching comparison approach for final findings.
The thesis has illustrated that personal network is the key factor to attract investors along with unique and viable idea. In addition, entrepreneurs need to take into account the bootstrapping method which is effective for financing in early stage. With three case studies, the thesis also emphasizes the importance of entrepreneur’s presentation skill when pitching idea to lenders and investors.