Library:
Paris Champerret
Madrid
London
Paris Montparnasse
Turin
- Item type
- Study and report
- Dissertation
- Language
- English
- Publication year
- 2024
- Contributors
- Troege, Michael
- Subjects
- FINANCES
The present study identifies factors affecting the ability of early-stage fintech startups in the
DACH region to secure funding subsequent to their initial successful fundraising. The research
addresses a gap in the existing literature by focusing on a specific sub-segment of startups
rather than being geography and sector agnostic. It uses a mixed-methods approach that
combines logistic regression analysis with qualitative validation expert interviews on both
investor and investee sides.
The central results show that a shorter time to initial funding improves the likelihood of
subsequent fundraising within three years. The initial funding type also impacts future
fundraising likelihood, with firms initially funded by accelerators or incubators being less
likely to secure subsequent investment. The results also show that the educational background
of the CEO of the startup affects the ability to raise subsequent funds. A bachelor’s degree or
a doctorate is predictive of improved funding success whilst an MBA or master’s degree is not.
Sector-specific findings suggest that SaaS-focused fintech startups are more likely to secure
subsequent funding, whereas those in the crypto sector are less likely; however, the use of ICO
financing in the latter biases the results.
The results are useful for both prospective investors and investees. Investors can use the
identified factors to improve informed investment decision-making at minimal cost. Founders
can leverage these findings to enhance their startup’s fundraising ability. While the study
contains robust findings, it is limited to its geographic and sector-specific scope. Thus, further
research is needed in the field.
