Factors Influencing the Financing of Defense Startups

Document Type : Original Article

Authors

1 Ph.D., Department of Control Engineering, , Faculty of Electrical Engineering, Shahrood University of Technology, Shahrood, Iran.

2 Ph.D., Department of Management Of Technology, Faculty of Management and Economic, Science and Research Branch, Islamic Azad University. Tehran. Iran.

3 PhD Candidate, Department of Marketing Management, , Faculty of Management and accounting, Shahid Beheshti University, Tehran, Iran.

Abstract

The objective of this study is to present a model for the identification of the factors influencing the financing of defence startups, specifically focusing on defence startups in Iran. This research can be classified as exploratory and practical in terms of the nature of research. The sample population consisted of participants from the capital market, specifically 11 experts familiar with venture capital in defence-related companies. These experts were identified through snowball sampling, and data was collected via semi-structured interviews.
The results from the data analysis reveal that the key factors influencing the financing of defense startups can be categorized into two main areas: macro-level factors related to market conditions and outlook, and micro-level factors concerning firm-specific characteristics, team capabilities, financial considerations, and investor preferences. Both macro and micro-level factors play a significant role in the selection of startup projects for financing, with some factors being interrelated. These five primary categories are further divided into secondary subcategories that reflect additional influential factors within each main category.

Keywords

References

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Journal of Defense Economics and Sustainable Development
Volume 10, Issue 35
April 2025
Pages 9-28

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