Category FAQs Search : Start-up Businesses

Question: Financing Small Businesses: From Venture Capital to Crowdfunding by Herciu Mihaela (Lucian Blaga University of Sibiu, Sibiu, Romania)

Answer: Startups and small businesses are facing many challenges in terms of financing their
activities. These types of companies do not have the possibility to access capital market or to
make IPO or to borrow money from banks like big, mature or well-known companies (who were
at their beginnings startups or small businesses). They have to find different sources for
financing their ideas/products/services that are in many cases very risky, hazardous or to
ambitious. But, fortunately, the financing alternative for these companies have evolved during
the last post crisis years. They have possibility to find some investors that are willing to invest in
a non-name company by accessing crowdfunding platforms, impress angel investors, or
attracting venture capital. All that in order to develop their business and to become a unicorn or
to have a great exit.

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(Source: Pustaka Negeri Sarawak, 18 Mar 2020)

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