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Capital-as-a-Service?

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  • Rosa, Frederico

Abstract

The global financial crisis of 2007-2008 changed the landscape of financing a business, affecting all projects that are looking for growth based on access to capital. Non-bank finance and new forms of equity access started to emerge not only for attractive born-global start-ups but also for smaller SME´s with sound and sustainable business plans, creating a stronger link between capital and knowledge. This article aims to open a reflection on the future of the sources of financing for an entrepreneur, focusing on three main premises: (i) debt and short term payback, (ii) capital and knowledge acquisition for a sustainable business model (iii) new forms of – debt free - payback to fit the business ability to grow and to focus the financial support primarily on the business model and not on the entrepreneur.

Suggested Citation

  • Rosa, Frederico, 2013. "Capital-as-a-Service?," MPRA Paper 52220, University Library of Munich, Germany.
    • Handle: RePEc:pra:mprapa:52220
    as

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    File URL: https://mpra.ub.uni-muenchen.de/52220/1/MPRA_paper_52220.pdf
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    References listed on IDEAS

    as
    1. Cull, Robert & Davis, Lance E. & Lamoreaux, Naomi R. & Rosenthal, Jean-Laurent, 2006. "Historical financing of small- and medium-size enterprises," Journal of Banking & Finance, Elsevier, vol. 30(11), pages 3017-3042, November.
    2. Canales, Rodrigo & Nanda, Ramana, 2012. "A darker side to decentralized banks: Market power and credit rationing in SME lending," Journal of Financial Economics, Elsevier, vol. 105(2), pages 353-366.
    Full references (including those not matched with items on IDEAS)

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    More about this item

    Keywords

    Start-ups; financing; SME´s access to capital; revenue-based financing; entrepreneurship; capital-as-a-service;
    All these keywords.

    JEL classification:

    • M00 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - General - - - General
    • M13 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Administration - - - New Firms; Startups
    • M21 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Economics - - - Business Economics

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