Research On The Financing Strategy Of Start-up Enterprises

Under the tide of economic globalization, the development of Start-up enterprises has been the focal point concerned by the governments and the theory circle. The governments have more and more realized the important status and function of Start-up enterprises in national economy and they tried their best to afford series of conveniences in the conditions of society, economy, finance and technology to accelerate the development of Start-up enterprises.Start-up enterprises have very important significance on Chinese economic development. A lot of entrepreneurial activity can promote economic growth, enhance the comprehensive national strength and international competitiveness, also become an important way of China's change the mode of economic growth Personal entrepreneurship can ease the employment pressure and solve employment problems; conductive to entrepreneurial activity and self-nurturing the entrepreneurial spirit of daring to take risks, exercise and nurture entrepreneurs. Start-up enterprises contribution rate to national economy raises constantly, But the development of Start-up enterprises is not plain sailing, in the course of its development, the difficulty in raising money is a main factor to restrict its development .Chinese start-up businesses face of capital financing and debt capital financing gaps in general, and special to face discrimination in the ownership, corporate management structure and social credit shows very imperfect and more profound impact. The Start-up enterprises of China have been in a vital transition period during which their developments were limited by the financing bottleneck. They are thirsting for the support of venture capital. Therefore, We need to analyze start-up enterprises in the financing have any specific needs, what factors affected start-up financing, what's the law of the overall financing needs of start-up enterprises, to solve the problem of start-up financing. This paper introduces the theory of strategy for raising money of Start-up enterprises, such as choosing the financing way in which oneself needs, confirming the suitable scale of financing and utilize the opportunities of different financing ways, making the best financing strategy, realizing the abundant use to the capital market of small and Start-up enterprises.On the analyses of the actuality and the reasons of the difficulty in raising money, this paper analyzes the different requests in raising money of Start-up enterprises of different kinds of and at different stages. On basis of these, the paper discusses the effect of angel investment, venture fund and second board market to ease the difficulty in raising money.Being a new thing in China, angel investment solves the difficulty effectively. But there are some obstacles to angel investment, so it is necessary to improve the financing assurance of Start-up enterprises, to implement the market-oriented management and the standard operation to control the risk of angel investment.Venture fund has important function on Start-up enterprises, especially the new high-tech enterprises. Through the analysis of the conception and characters of venture fund, some suggestions have been given to choose the venture fund for Start-up enterprises.To the Start-up enterprises being kept out of by the main board of the stock market, the second board is one of the best methods. Through the raising money from the second board, a kind of high efficiency can be offered. Through the Running and going public, the enterprises win higher profit and social reputations, promote the Start-up enterprises to operate high-standard, set up the mechanism of management of management with rational science, improve inside efficiency, and control and reduce the business risk.Start-up enterprises not only pursue the stability of the financing business relations, the appropriateness of the financing opportunity and the legalizing of the financing way and procedure, but also pursue the lowest cost, the best capital composition and the greatest profit. Seed enterprises in the period may at gestation period of investment, do not have corresponding legal structure, the demand of capital includes enterprise start-up costs, cost of the feasibility study, a degree of technical research and development costs. In general, the creation of enterprises in the former most need such funds, but because of "seed" technology or innovative ideas at the initial design stage, success has a lot of uncertainty. At the stage of start-up a business operation is just beginning to demand more funding, and the cash flow of sales revenue is very limited, enterprise development faces the risk of greater market risk and technology but its ability to withstand risks is lower. At growing stage, enterprise need for substantial funds to mature the product and gain consumers' recognize, the risks due to technological and market uncertainty remains start-up businesses at greater risk, but the risks are gradually reduced. In the expansion phase, the expansion of the scale of corporate finance needs to become an important characteristic of this stage financing needs, the technical risks and market risks faced by a significant decrease, while enterprise profitability and the ability to rapidly raise mortgages increased enterprises to withstand risks. This thesis discussed the Start-up enterprises character, growing process, external environment, financing channel and manner and the investment and management of VC through the analysis of Chinese Start-up enterprises current development situation, their main restrain factor and the VC's enormous impetus to them under good environment. The hypothesis how Start-up enterprises can get VC was proposed based on the investigation of the finance strategy of Hefei sanjing Co, Ltd. A decision-making model was built through which the best financing project was established.