Financing and innovation in start-ups: A comparative analysis between Italy and the Netherlands

In an era characterized by rapid technological advances and global interconnectedness, the landscape of innovation and entrepreneurship has undergone significant transformations. In my thesis I explored several chapters that provide an overview of the relationship between innovation and startups and then explore the figure of the entrepreneur of innovative startups coming from two different geographical areas with which I came into contact during my academic career: Italy and Netherlands. Chapter 1 delves into the fundamental aspects of innovation and startups, laying the foundations for a comprehensive exploration of the complex dynamics that govern entrepreneurial initiatives. The chapter provides a meticulous definition of innovation, revealing its multifaceted nature and highlighting its central role in driving economic growth and social progress. Subsequently, I focus on the figure of the entrepreneur, exploring the characteristics and qualities that define this as the key force in the innovation ecosystem. Attention then turns to the contemporary innovation model and the indispensable role that startups play in this paradigm. This chapter clarifies the symbiotic relationship between innovation and startups, highlighting how these dynamic entities act as catalysts for transformative change. The chapter also delves into different business models, in particular the small and medium-sized enterprise (SME) entrepreneurship and innovation driven entrepreneurship (IDE). This exploration aims to capture the different approaches that entrepreneurs employ in tackling the terrain of innovation. Subsequent chapters delve into the practical aspects of startup operations by exploring the various financing methods available for startups, analyzing equity financing, debt financing and leasing, followed by startup financial cycle analysis that explains the complexities related to the startup path they take during their life cycle and how their revenues/cashflows vary as time passes and milestones are achieved. Chapter 3 shifts the lens to the startup landscape, examining startup failure rates and the crucial role played by incubators and accelerators. Specific organizations such as I3P and YES!Delft are examined as examples of support structures in this dynamic environment. In Chapter 4, the focus expands towards an international exploration of startup ecosystems. The Dutch and Italian startup landscape takes center stage, with case studies on exceptional startups such as DeNoize and Respyre representing the Dutch context; Ecoplasteam and Vesevo serving as examples of the Italian entrepreneurial scene. Finally, the thesis concludes with a comprehensive analysis in the final chapter, exploring the differences in the entrepreneurial approaches of the italian and the dutch entrepreneur. This comparative analysis seeks to reveal the unique factors that influence entrepreneurial success in these distinct contexts, contributing to a deeper understanding of the global innovation ecosystem.