Exploring the Role of Corporate Finance in Start-up Growth

Abstract

This study explores the critical role of corporate finance in fostering start-up growth by employing a mixed-methods approach that combines quantitative econometric modeling with qualitative thematic analysis. Drawing on data from 2018 to 2023, the research evaluates how venture capital, corporate venture capital, angel investment, and venture debt influence performance indicators such as revenue growth, survival rates, innovation outputs, and profitability. Quantitative results demonstrate that venture capital significantly accelerates growth, corporate venture capital enhances innovation through strategic synergies, angel investment improves survival in early stages, and venture debt extends financial runway while minimizing equity dilution. Furthermore, balanced mixes of equity and debt emerge as more sustainable for long-term performance, while regional differences highlight the uneven development of financing ecosystems. Complementing these findings, qualitative insights reveal that mentorship, investor expertise, and institutional contexts mediate the effectiveness of financial inflows. The study concludes that corporate finance is not merely a funding mechanism but a strategic enabler that integrates capital provision with knowledge transfer, governance support, and market access. These results have implications for policymakers seeking to design inclusive financing ecosystems, as well as for entrepreneurs aiming to strategically sequence financing sources to achieve sustainable growth.