Uncertainty in financing interest rates for startups

The difficulty for startups to secure financing is an important issue in relation to the economic progress of developing countries. As the main financing channel for startups, informal financing is a popular topic in theoretical and practical circles. Using data on 113,656 loans to startups in Wenzhou, China, from 2016 to 2018, this paper measures the uncertainty of financing rates. The results show that from the perspective of fund suppliers,...