Research On The Mechanism Of Start-up Financing

The dissertation is based on the traditional theories of business financing and business growth cycle as well as some related theories with started-up business financing. It aims at the practice of the Chinese started-up business financing. And through learning from sonce start-up financing experience of U. S. A. and other developed countries in the world, the author has made a research on operation mechanism of start-up financing and puts forwards some ways to promote it.The dissertation first sums up the present state of research on business financing of home and abroad, and recalls the developing history of business financing theories. From 'Impatience of Human Character- Opportunity of Investment' theory and financing/capital structure theory (including early and modern capital structure theories), the dissertation explains the theories related with the growth of the started-up, i.e. business growth theory, business growth cycle theory, and theory of self-management of business. Meanwhile, it also give a detailed explanation on the theories related with the financing of the start-up business, i.e. financing growth cycle theory, theory of 'two-gaps' in start-up financing market and credit distribution theory. Then it also puts forwards some concepts, such as start-up, started-up business, financing, and makes a thorough analysis on financing, including financing structure, financing cost and financing risk. On the basis of the above study, the dissertation gives a definition to a new concept-start-up financing, further analyzing the characteristics and resources of start-up financing. Following the above, some other concepts, i.e. the efficiency of start-up financing, the capability of start-up financing are also introduced. And it continues to discuss how to improve the efficiency and capability of start-up financing. What's more, it thoroughly analyzes the basic elements which influence the activities of business financing, the external and internal motivations of business financing, and the preference of financing. It also compares all the modes of financing and states on the formula of financing cost. The problem how start-up financing and business management structure relate with and influence each other is discussed in the dissertation. The author further gives an ides about the development and testing of the started-up businesses' financing capability. Finally it explains the concept of financing risk and its types from the view of started-up business, analyzing the features of start-up financing risk and some elements which influence it. And it tells the readers the ways to distinguish financing risk and the measurement of financing risk. It focuses on features of start-up financing risk and its causes as well as the ways to control financing risk. Through analyzing the modes of business financing, it elaborates the risks at every stage of businesses' development and its corresponding features of financing needs. Compared with financing structure of USA business, the one of our country has been analyzed.It have been found that there are lots of problems in Chinese start-up financing: the limited channels to financing, the limited nets and resources for financing; the insufficient information gained by started-up businesses, the uncertainty of theirdevelopment, the shortage of information and knowledge for them, all which put the started-up businesses at a disadvantage and make them restrained at financing modes and financing decision-making. Furthermore the best financing strategies have still not formed during the course of start-up financing. Nowadays, the research and application of start-up management, esp. start-up financing hasn't been well taken up in China, which causes that there are not the consultation of theory and guidance of methodology about start-up financing. The increasing risks of the started-up businesses lead to the increasing risks of start-up financing. So it is necessary to strengthen the management of the started-up businesses' risks. On the other hand, the shorten...