Financing Innovative Businesses Toward Commercialization

Abstract

This chapter presents a conceptual background and discusses selected concepts of financing innovative businesses toward commercialization. In the early stage of technology financing, technology-based firms generally seek informal sources of funding (because bank financing is not a type of financing option available to early-stage business ventures due their high-risk nature), including venture capital (VC) financing, and business angels, before they access formal funding sources, like banks, other financial institutions, and capital markets, in later stages. This chapter aims to provide a better understanding of the financing options that would help technology-based firms progress toward the commercialization stage.