Abstract
Innovative startups are newly formed companies with high growth potential, which usually absorb a lot of liquidity in the early years of life, to finance development, against minimal collateralizable assets. This is unattractive for traditional banking intermediaries, usually replaced by other specialized intermediaries as venture capital or private equity funds, which diversify their portfolio basing their strategies on a multi-year exit with substantial expected increases in value from investments that survive a Darwinian selection. The role of professional intermediaries is often decisive along the selective road from startup to scale-up.
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Moro-Visconti, R. (2021). Cherry-Picking Intermediaries: From Venture Capital to Private Equity Funds. In: Startup Valuation. Palgrave Macmillan, Cham. https://doi.org/10.1007/978-3-030-71608-0_5
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