Start-ups are often in need of external help to grow but do not have the cash to pay for critical services. A solution to this problem is to hire technology or strategy consultants and use equity as payment. With equity payments, the service provider also becomes an investor and a partner in the start-up. By interviewing consultants, investors, and start-up entrepreneurs, this study explores the challenges associated with equity payments, and it identifies situations when equity payments can be a viable solution. We propose that consultancies require a risk-seeking mindset and a business model that supports long-term investments in clients. Further, we propose that consultancies' inclination to accept equity payments increases when the entrepreneur has industry specific experience. The start-up entrepreneur's inclination to accept equity payments increases when they lack experience of running a start-up, and when the start-up has not yet shown a proof of concept. Even though the long-term viability of equity payments for critical services remains to be determined, it is an option worth taking into account by start-ups in need of assistance.
<p><em>Banks had a large part in the developments taking place in the years after the outbreak of the crisis in 2007, as many banks had an excessively low capital base, involving too much risk in its businesses. In this study, the largest four banks in Sweden have been investigated. The financial crisis affected the banks differently, depending on the markets of expansion. Excessive risk-taking has been found, where one bank expanded aggressively into new markets and did not appreciate the risks on these new markets. CEO compensation and risk seeking boards are factors that might have caused such behaviour. All of the banks have made noticeable changes to their capital structure, increasing it annually, accompanied by a risk-reduction movement in their assets to improve the stability in most of the banks. The new regulation’s focus on both quality and quantity is in accordance with the views that are expressed in the framework. The banks have altered their goals to levels several per cent above the regulations, in contrast to before the crisis when they were often as close as possible. The impact of the new liquidity regulations has been limited, as the banks continue to work with their internal measures. The banks have all changed their view of capital ratio and liquidity, where many of the banks have doubled the amount of these posts and now find these measures to be both beneficial and a way to gain trust and stability.</em><em></em></p>
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