Working Capital Working Capital

Working Capital

Startup, when the idea becomes concrete

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Telecom Italia transforms the business ideas of young startuppers with Working Capital.

The reference to startups is increasing where technological development, innovation and talent are concerned.

What is a startup and what is its path in becoming a business?

When referring to sustainable growth, talent, technological development and innovation, we often hear more talk of startups.

The term startup refers to a company in its embryonic stage, with huge potential and rapid growth plans. However, it cannot be financed by traditional capital. This is due to high initial upfront costs and uncertain revenues. In the short term, most startups are not sustainable without a dedicated source of funding.

How can they find funding?

Once the required sum of capital and business growth plan is determined, the next crucial step for a startup is fundraising, i.e. the search for capital.

The capital to support a startup can come from several sources:

  • individuals and angel investors who directly invest in the startup, thanks to legal benefits
  • crowdfunding, the ability to raise capital through online portals. It is a new method that allows a startup to find investment capital via the web, sometimes in exchange for equity in the project to be financed
  • ordinary loans offered by banks, credit institutions, and finance companies, from which they can apply for medium or long term loans, participating in special programs provided by loan institutions
  • grants, soft loans or other facilities provided by many national and international laws
  • fiscal bonuses, tax credits, corporate tax bonuses or corporate credits
  • venture capital, financial resources made ​​available by the investment fund for startups with a perceived potential for long-term growth. This is a very important source of funding for startups that do not have access to capital markets. This is usually for high-risk investment operations that can offer above average returns.

To obtain public benefits it is necessary to demonstrate the validity and effectiveness of their business idea by presenting involved organizations with a business plan of their proposal. Alternatively, they can contact professional associations, the BIC (Business Innovation Centre) and incubators provided within their region. Assume increasing importance of programs and ad hoc initiatives carried out by private entities as well as accelerators.

What are accelerators?

Accelerators are places where startups are formed and grown so that they can launch their products or services on the market at a mature level. The main objective of the mentor operating within accelerators is to help the team to face organizational, operational and strategic difficulties occurring in the project, to support them in the roll-out of a first version of the business idea and increase the level of business preparation through an internal program of training and coaching activities for professionals and entrepreneurs.

Working Capital is the Telecom Italia program started in 2009 that supports the ideas and talents of young aspiring entrepreneurs in the field of digital and web 2.0 and transforms them into successful business