Sources of Startup Financing in Poland

Abstract

The aim of the research is to identify startup characteristics and to determine the relationship between the development phase of these entities and the sources of their financing and the empirical verification of the identified dependencies in the conditions of creation and development of startups in Poland. Source of empirical data were the following publications and reports: Startup Poland Foundation, Diagnosis of the start-up ecosystem in Poland, Small and Medium Enterprises (PeKaO SA) Reports, European Startup Monitor 2015. The research was based on the assumption that startups in Poland, regardless of the development phase,  are mainly funded by the founders’ capital. Studies have shown that there is no uniform approach to defining a startup. Most often, the term refers to such features as innovation, high growth potential and a period of market activity less than 10 years. The startup life cycle includes various phases of development. They influence the selection of funding sources that can be divided into classical and alternative. The first of these include the founding capital, bootstrapping and so-called FFF. Alternative sources of funding include crowdfunding, business angels, and venture capital. In Poland, the startups are financed mainly by the founders’ capital. They make little use of alternative sources of financing.