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Startups’ use of equity in payments for critical services
Linköping University, Department of Management and Engineering, Industrial Economics. Linköping University, Faculty of Science & Engineering.
Linköping University, Department of Management and Engineering. Linköping University, Faculty of Science & Engineering.
Linköping University, Department of Management and Engineering. Linköping University, Faculty of Science & Engineering.
2018 (English)Conference paper, Oral presentation only (Refereed)
Abstract [en]

Startups are often in need of external help to grow, but do not have the cash to pay for such services. A solution to this problem, observed in Stockholm’s startup scene, is to hire consultants and use equity as payment. With equity payments, the consultancy becomes not only a service provider but also an investor and a partner of the startup. By interviewing startup entrepreneurs, consultants and investors, this paper explores the internal and relationship factors that affect the inclination of both startups and consultancies to use equity payments. We conclude that several criteria have to be met for equity payments to be viable. However, with the right circumstances in place, equity payments represent a promising opportunity for startups to obtain access to critical services.

Place, publisher, year, edition, pages
2018.
Keywords [en]
Equity payments, startups, SMEs
National Category
Business Administration
Identifiers
URN: urn:nbn:se:liu:diva-154290OAI: oai:DiVA.org:liu-154290DiVA, id: diva2:1284865
Conference
European Marketing Academy (EMAC) 2018, University of Strathclyde, Glasgow, UK, May 29- June 1 2018
Available from: 2019-02-01 Created: 2019-02-01 Last updated: 2022-09-13

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Ellström, Daniel

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Citation style
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  • Other locale
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Output format
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  • asciidoc
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