Not Just About the Money: How Investors Evaluate Startup Risks

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DOI - Digital Object Identifier

<a href="http://dx.doi.org/10.15240/tul/009/lef-2025-05" target="_blank" >10.15240/tul/009/lef-2025-05</a>

Jazyk výsledku

angličtina

Název v původním jazyce

Not Just About the Money: How Investors Evaluate Startup Risks

Popis výsledku v původním jazyce

Startups are exciting but risky business. Today&apos;s investors look at more than just financial numbers when deciding where to put their money. This paper explores how both financial and non-financial risks affect and how startups are valued. The goal is to understand what kinds of risks matter most to investors and how these risks each other interact. To answer this, we reviewed ten peer-reviewed articles published between 2018 and 2024. These studies focus on topics such as cash flow, capital structure, ESG performance, team dynamics, and innovation. The findings show that investors are used to take a broad view. Weak cash flow can limit innovation, while issues with ESG or team quality can reduce a startup&apos;s chances of getting more funding and gaining real business progress. The paper also highlights how risk is seen differently in various parts of Europe, depending on local funding patterns. Startups that manage both types of risk effectively tend to grow faster and attract more stable investments. Financial indicators still matter, but soft factors like adaptability and leadership play a growing role in investor decisions as well. This paper suggests that founders should treat risk management as a strategic tool, not just a financial safeguard. By combining both perspectives, investors and entrepreneurs can mutually make more informed, long-term decisions about the future of a startup.

Název v anglickém jazyce

Not Just About the Money: How Investors Evaluate Startup Risks

Popis výsledku anglicky

Startups are exciting but risky business. Today&apos;s investors look at more than just financial numbers when deciding where to put their money. This paper explores how both financial and non-financial risks affect and how startups are valued. The goal is to understand what kinds of risks matter most to investors and how these risks each other interact. To answer this, we reviewed ten peer-reviewed articles published between 2018 and 2024. These studies focus on topics such as cash flow, capital structure, ESG performance, team dynamics, and innovation. The findings show that investors are used to take a broad view. Weak cash flow can limit innovation, while issues with ESG or team quality can reduce a startup&apos;s chances of getting more funding and gaining real business progress. The paper also highlights how risk is seen differently in various parts of Europe, depending on local funding patterns. Startups that manage both types of risk effectively tend to grow faster and attract more stable investments. Financial indicators still matter, but soft factors like adaptability and leadership play a growing role in investor decisions as well. This paper suggests that founders should treat risk management as a strategic tool, not just a financial safeguard. By combining both perspectives, investors and entrepreneurs can mutually make more informed, long-term decisions about the future of a startup.

Druh

D - Stať ve sborníku

CEP obor

—

OECD FORD obor

50204 - Business and management

Projekt

—

Návaznosti

I - Institucionalni podpora na dlouhodoby koncepcni rozvoj vyzkumne organizace

Rok uplatnění

2025

Kód důvěrnosti údajů

S - Úplné a pravdivé údaje o projektu nepodléhají ochraně podle zvláštních právních předpisů

Název statě ve sborníku

PROCEEDINGS OF THE 17TH INTERNATIONAL CONFERENCE LIBEREC ECONOMIC FORUM 2025

ISBN

978-80-7494-747-6

ISSN

3029-8474

e-ISSN

—

Počet stran výsledku

6

Strana od-do

61-66

Název nakladatele

Technical University of Liberec

Místo vydání

Liberec

Místo konání akce

Liberec

Datum konání akce

3. 9. 2025

Typ akce podle státní příslušnosti

EUR - Evropská akce

Kód UT WoS článku

001666192900005