The Search for Competent Capital: Financing of High Technology Small Firms in Sweden and USA

The pecking order theory states that firms choose financing in the following order: internal finance-debt-equity. However, most of the research has been conducted on larger (publicly-listed) firms. This article presents a unique empirical material on the financing of high technology small firms (HTSFs) in Linköping, Sweden and Santa Clara County, USA. The data reveals how firms are financed and their preferences for different financial sources....