Published : 2016-09-14

The importance of venture capital financing of start-up companies

Monika Burżacka

Elżbieta Gąsiorowska


Venture capital due to its specificity may successfully finance companies in all stages of business, even those extremely specific and difficult. Start-up as a first phase of the development of the company is such a case. The risk of failure of the project is extremely high and the costs are significant. Funds expect extremely high profits in such a situation, but unfortunately the market offers relatively rare projects which guarantee satisfying rate of returns to the investors. This is the main reason why the development of the venture capital market is so sluggish. Only com-plex government programs can effectively support the development of this form of financing start-up innovative companies which often face with a real problem of lack of the capital. Given these facts, the paper analyses the financial needs of start-ups and an presents the role of venture capital compared to the other sources of capital.


start-ups, financing gap, venture capital, innovation, SME sector





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Burżacka, M. ., & Gąsiorowska, E. . (2016). The importance of venture capital financing of start-up companies. Forum Scientiae Oeconomia, 4(3), 141–150. Retrieved from

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