Banks are reluctant to provide investment loans to newly established startups based on their development on innovative technologies. In such a situation, innovative startups are created and financed from such external sources of financing as investment funds, business angels, issue of securities, crowdfunding and others.

In some countries such as Japan for example, prior to initiating existence, start ups perform evidence-based and word-of-mouth research on the market demand for a product they might be interested in developing.

Once such a need is ascertained, future start up co-founders make an "alpha" version of the product and engage in a series of presentations with mid- and high-level management of companies that might be interested in co-investing/ selling the product - i.e....

Japanese start ups try to carve up a niche on the market by being the first new-comer in a product segment, rather than competing with already existing products/ companies.

Apparently, these tactics minimize the chance for failure in the first year of start-ups' existence.

Financial statements are the  source of financial data  for the purpose of making decisions . That is why financial accounting  carries such a high weightage on the accuracy, reliability, and relevance of the information on these financial statements.

financial statements includes

income statement

statement of financial position

statement of change in equity

statement of cash flow

and the Noted (disclosure) to financial statements

The objective of financial statements is to provide disclosures  related to financial position, performance and changes in financial position of an enterprise that is useful to a wide range of users in making economic decisions." Financial statements should be understandable, relevant, reliable and comparable and result oriented

The target of budget summaries is to give data about the money related position, execution and changes in monetary situation of an endeavor that is valuable to a wide scope of clients in settling on monetary choices." Financial results should  be justifiable, significant, solid and similar

First you need to know which financial statements are important. They are:

• Balance Sheet—shows the financial conditions of your business at a point in time
• Statement of Operations (Profit and Loss Statement)—shows whether you made a profit during a specific period of time
• Cash Flow Statement—shows what happened to your cash position during a specific period of time

You should have a basic understanding of each of these statements. When compared with statements from prior periods, you can determine whether something is happening in your business that needs your special attention.

Your accountant can prepare these statements for you from the business data that you supply. There are also a number of computer software programs that will help you generate these statements from your input of regular transactions such as sales, collections, purchases, payments and payroll.