The roles of finance at different growth stages of startups

Abstract

The purpose of this qualitative case study is to develop a framework that summarizes the finance-related problems faced by entrepreneurs at different development stages of their startups, as well as the possible solutions that generated from more than eighty examples. The sources of the examples are 1) author's own experience; 2) the face-to-face interview with two successful serial entrepreneurs at MIT Sloan School of Management; 3) the case studies from past literature (Flamholtz & Randle, 2007; Hess, 2010; Matthews & Dennis, 2003). The study findings and the analysis generated nine finance themes, which might provide insight into understanding the successful/failure factors of startups, and might offer best practices for entrepreneurs to follow. The themes covered the most important areas of financial management including cash, planning, and finance personnel.