Exploratory Study On Challenges Faced By The Tech Start-ups In Access The Funds

For tech startups, raising funds is difficult because of the high R&D
costs. This makes them tricky to present to traditional investors as
complex technologies. Moreover, higher risk and uncertain returns
are usually perceived by investors as stemming from these barriers,
which can make it harder to attract funding. Data was collected
from 113 respondents through the survey questionnaire, and the
NVivo software was implemented in the case study. It analyzed the
demographic profile and some basic descriptive statistics for the
collected data. It also used EFA to learn the constructs by using SPSS.
Besides that, it applied the SEM model to find R Square and therefore
came to know the extent of the impact of independent factors on
the dependent factor by knowing the P-values. A questionnaire was
developed, and a pilot study of 8 startups was run using Nvivo to survey
the challenges faced. Descriptive statistics indicated that though
prototypes were not developed, skills and networking improved,
with standard deviation indicating the margins. The independent
variables, such as prototypes, social networks, experienced staff, and
skills, have less effect on gaining external funding.
Conversely, innovation emerges as the most significant variable in
the SEM analysis. Investors, in fact, are attracted to innovation for
its potential to drive future growth. This suggests that deep-tech
startups may not need to rely heavily on networks and staff skills
in their early stages. The potential for further challenges to be
uncovered through a more comprehensive study or case studies is
an engaging prospect, highlighting the need for continued research
in this area