startup startup or start-up ) is an emerging entrepreneurial business that aims to meet market needs by developing a business model which is feasible around products, services, processes, or platforms. Startups are usually companies designed to develop and validate scalable business models effectively.
Start-ups have a high failure rate, but minority successes include companies that have become large and influential.
Video Startup company
Evolution
The typical initial task in establishing startups is to assemble teams to secure skills, knowledge, financial resources, and other elements to conduct research in the target market. Startup will then start building the first minimum viable product (MVP), prototype, to validate, rate and develop new ideas or business concepts. Shareholder Agreements (SHAs) are often signed to confirm the commitments, ownership and contributions of founders and investors and to deal with intellectual property and assets that may be generated by startup. The business model for startup is generally found through a "bottom up" or "top-down" approach. A company may cease to be a new company when it passes through various milestones, such as being publicly traded on the stock market in an Initial Public Offering (IPO), or ceasing to exist as an independent entity through mergers or acquisitions. Companies may also fail and stop operating altogether, a very likely result for startup, given that they are developing annoying innovations that may not work as expected and which may not be market demand, even when the product or service is eventually developed. Given that startup operates in high-risk sectors, it is also difficult to attract investors to support product/service development or attract buyers.
The size and maturity of the startup ecosystem where startup is launched and where it grows have an effect on volume and startup success. The startup ecosystem consists of individuals (entrepreneurs, venture capitalists, angel investors, mentors); institutions and organizations (leading universities and research institutes, business schools and entrepreneurial programs operated by universities and colleges, nonprofit entrepreneurial support organizations, government entrepreneurship programs and services, Chamber of Commerce) business incubators and business accelerators and best-performing entrepreneurial companies and startups. An area with all these elements is considered a "strong" startup ecosystem. Some of the most famous startup ecosystems are Silicon Valley in California, where major computer and Internet companies and top universities such as Stanford University create a stimulating startup environment, Boston (where the Massachusetts Institute of Technology is located) and Berlin, the home of WISTA (a research area top), many creative industries, leading entrepreneurs and startup companies.
Investors are generally attracted to new companies differentiated by their strong co-founder teams, balanced "risk/reward" profiles (where high risks due to untested and disturbing innovations are offset by high potential returns) and "scalability" (it's possible that startup can expand its operations by serving more markets or more customers). Attractive startups generally have lower "bootstrapping" costs (self-funding from startups by founders), higher risk, and higher potential return on investment. Successful startups are usually more measurable than established businesses, in the sense that startups have the potential to grow rapidly with limited capital, labor or land investment. Time is the most important factor for the greatest startup success, while at the same time it is identified to be one of the most difficult things to be mastered by many entrepreneurs and serial investors.
Startup has several options for funding. Venture capital firms and angel investors can help startup companies start operations, exchange seed money for equity shares in the company. Venture capitalists and angel investors provide financing for various startups (portfolios), in the hope that a small number of startups will become viable and make money. In practice, however, many startups initially funded by founders themselves use "bootstrapping", where loans or prize money from friends and family are combined with savings and credit card debt to finance the venture. Factoring is another option, though not unique to startup. Other funding opportunities include various forms of crowdfunding, such as crowdfunding equity, where startups seek funding from a large number of individuals, usually by throwing their ideas on the Internet.
Maps Startup company
Partnering business
Startups usually need to form partnerships with other companies to enable their business model to operate. To become more attractive to other businesses, startups need to align their internal features, such as management style and products with market situation. In their 2013 study, Kask and Linton developed two ideal profiles, also known as configuration or archetypes, for commercial startup discovery. The heirs of call profiles for less entrepreneurial (more conservative) management styles and startups must have incremental discovery (build previous standards). This profile is set to become more successful (in search of business partners) in a market that has a dominant design (a standard that is clearly applied in this market). In contrast to this profile are triggers that have a very entrepreneurial management style and where radical discovery or intrusive innovation (a completely new standard) is being developed. This profile is set to be more successful (in search of business partners) in a market that does not have a dominant design (standard set). New companies must align themselves with one profile when commercializing an invention to be able to find and be attractive to business partners. By finding business partners, startups will have a greater chance of being successful.
Culture
Founder startup often has a more casual or unusual attitude in clothing, office space and marketing, compared to traditional companies. For example, startup founders in the 2010s may wear hoodies, sneakers, and other casual wear for business meetings. Their offices may have recreational facilities in them, such as pool tables, ping pong tables, and pinball machines, which are used to create a fun work environment, stimulate team development and team spirit, and encourage creativity. Some of the usual approaches, such as the use of "flat" organizational structures, in which regular employees can talk to founders and executive officers informally, are done to improve workplace efficiency, which is necessary to get their business off the ground. In a 1960 study, Douglas McGregor stressed that punishment and respect for uniformity in the workplace is not necessary because some people are born with the motivation to work without incentives. Some startups do not use strict command structures and hierarchical controls, with executives, managers, supervisors and employees. Some startups offer employee stock options, to increase their "purchase" from scratch (because these employees will benefit if the company runs well). This elimination of stressors allows workers and researchers at startup to focus more on the work environment around them, and more on achieving the task at hand, giving them the potential to achieve something great for their company.
This culture has now grown to include large corporations aimed at acquiring intelligent thinking that encourages startup. Google, among other companies, has made steps to make startup purchases and their workers feel at home in their offices, even letting them bring their dogs to work. The main purpose behind all changes to startup workplace culture, or companies that recruit workers from startup to do similar work, is to make people feel comfortable in their new office as possible to optimize performance. Some companies even try to hide how big they are to capture a specific demographic, just as Heineken did recently.
Inventor-shared
Co-founders are the people involved in the initial launch of startup companies. Anyone can be a co-founder, and an existing company can also be a co-founder, but often co-founders are self-employed entrepreneurs, engineers, hackers, web developers, web designers and others involved in the new ground, often high-tech, effort. The language of securities regulations in the United States considers co-founders to be "promoters" under Rule D. The US Securities and Exchange Commission's definition of "Promoter" includes: (i) Any person who, acting alone or in conjunction with one or more other persons , directly or indirectly take the initiative in establishing and regulating the business or company of a publisher; However, not all promoters are co-founders. In fact, there is no formal legal definition of what makes a person a co-founder. The right to call yourself a co-founder may be established by agreement with a co-founder or by permission of the board of directors, investors, or shareholders of the startup company. When there is no definitive agreement (like SHA), disagreements about who the founders can emerge.
Start investing
Startup investing is the act of making an investment in the company's initial stage (startup company). Beyond the contributions of the founders themselves, some startups increased additional investments in some or some of their growth stages. Not all startups that try to increase investment succeed in their fundraising. In the United States, demand for funds becomes easier for startup as a result of the JOBS Act. Prior to the advent of equity crowdfunding, an online form of investment that has been endorsed in some countries, startup does not advertise themselves to the general public as investment opportunities until and unless they first obtain approval from the regulator for an initial public offering (IPO) which usually involves a list of startup securities in the stock market. Currently, there are many alternative forms of IPO commonly used by startup and startup promoters that do not include list of exchanges, so they can avoid certain regulatory compliance obligations, including mandatory disclosure of financial information and factual discussion of business conditions by management that investors and prospective investors regularly receive from listed public companies.
Evolution of investment
After the Great Depression, blamed as part of an increase in speculative investment in unregulated small firms, startup investing is primarily a mouth-of-mouth activity devoted to friends and families of founders of startup founders, business angels and Venture Capital funds. In the United States this has happened since the implementation of the Securities Act of 1933. Many countries apply similar laws to prohibit general and public advertisements from unlisted securities, including shares offered by startup companies. In 2005, the new Accelerator investment model introduced by Y Combinator incorporates a fixed-term investment model with a robust bootcamp-style training program, to streamline early-stage investment processes/seeds with more systematic training.
Following Y Combinator, many accelerators with similar models appear around the world. Accelerator models have become very common and widespread and they are the key organization of any Startup ecosystem. The Title II Jumpstart Business Startups Act (JOBS Act), first implemented on 23 September 2013, provides startup and founder startup or promoters in the US. the right to publicly request and advertise publicly using any communication method provided that only accredited investors are allowed to purchase securities. But the rules affecting equity crowdfunding in different countries vary with different levels and models of freedom and restrictions. In many countries there are no restrictions that limit the general public from investment to startup, while there are still other types of restrictions, such as limiting the number of companies that can seek from investors. Due to the positive development and crowdfunding growth, many countries are actively updating their rules in crowdfunding.
Invest round
When investing in startup, there are different types of stages in which investors can participate. The first round is called the round of seeds. Generally seed rotation is when startup is still in the early stages of implementation when their product is still in prototype phase. At this level the angel investor will be the participating party. The next round is called Seri A. At this point the company already has an attraction and can generate revenue. In Series A venture capital firms will participate with angels or super angel investors. The next round is Series B, C, and D. These three rounds are leading to an IPO. Venture capital firms and private equity firms will participate.
Invest online
The first investment-based crowdfunding platform known for startup was launched in February 2010 by Grow VC, followed by the first US. based on the company's ProFounder launch model for startups to increase direct investment on the site, but ProFounder then decided to close its business for regulatory reasons preventing them from continuing, after launching their model for the US. market before the JOBS Act. With the positive progress of the JOBS Act for people investing in the US, equity crowdfunding platforms like SeedInvest and CircleUp began appearing in 2011 and platforms such as investiere, Companisto and Seedrs in Europe and OurCrowd in Israel. The idea of ​​this platform is to streamline the process and solve two major points that occur in the market. The first problem is for startup to access capital and reduce the amount of time needed to close the financing round. The second problem is intended to increase the number of streams of transactions for investors and also centralize the process.
![STARTUP COMPANY [FR] La Sim arrive sur steam et en français ...](https://lh3.googleusercontent.com/blogger_img_proxy/AEn0k_t2BfmfKfLAfIzeZKHLxoME-xsY6vclYQ1BoYWwRvdG3bJHTo61bjL9IyMi_4j53hBa5Lo0f9av5OS1h9Ram5z8AT77TC7c2bqHoJql87Tso4UPEpojAjgNv0eWYbjKWeIbjMYsIMQgHw=s0-d "STARTUP COMPANY [FR] La Sim arrive sur steam et en français ...")
Startup internal
Large or established companies often try to promote innovation by setting up an "internal startup", a new business division that operates with the long hand of the rest of the company. Examples include Bell Labs, a research unit within Bell Corporation and Target Corporation (which started as an internal startup of the Dayton department store chain) and thirteen years, a product developed by Microsoft's internal startup.
Re-starters
A failed entrepreneur, or restart, who after several times resumed in the same sector with more or less equal activities, has a great chance of becoming a better entrepreneur. However, some studies suggest that the restarter is more attenuated in Europe than in the US.
Trends and obstacles
If the value of a company is based on its technology, it is often equally important for business owners to get intellectual property rights protection for their ideas. The newsmagazine
However, the startup startup rate is very high. A 2014 article at Fortune predicts that 90% of startup eventually fails. In a sample of 101 failed start-ups, the top five failure factors were a lack of consumer interest in the product or service (42% failure); funding or cash issues (29%); personnel or personnel issues (23%); competition from competing companies (19%); and problems with product or service pricing (18%). In the case of funding issues, they can leave employees without a salary. Sometimes these companies are bought by other companies, if they are considered viable, but often they leave employees with very little way out to cover lost income for work time.
Although there are startups made in all types of businesses, and worldwide, some locations and business sectors are primarily associated with startup companies. The Internet bubble in the late 1990s was associated with a large number of internet startup companies, some selling technology to provide internet access, others using the internet to provide services. Most of these startup activities are located in the most famous startup ecosystem - Silicon Valley, a region in northern California that is famous for high startup company activity:
The spark that triggered the explosion of "Silicon startups" at Stanford Industrial Park was a personal strife in 1957 between Shockley Semiconductor employees and company name and founder, Nobel laureate and co-inventor of transistor William Shockley... (Employees) formed Fairchild Semiconductor immediately upon departure they...
After several years, Fairchild gained ground, becoming a great presence in the sector. Its founders began to leave to start the company based on their own new ideas and followed on this path by their own former employees... The process of gaining momentum and what ever started in Stanford research park became a landslide startup... So, for 20 years, only eight former Shockley employees gave 65 new companies, who then did the same...
Startup advocates are also trying to build a tech startup community in New York City with organizations like NY Tech Meet Up and Built in NYC. In the early 2000s, patent assets of startup companies that failed to be bought by what was unreasonably known as patent trolls, which then took the patent from the company and confirmed the patent against a company that may infringe upon the technology covered by the patent.
See also
- The startup ecosystem
- Business incubator
- Innovation
- Business plan
- Lean startup
- Liquidity event
- List of startup unicorn companies - startups worth US $ 1 billion or more
- Stock market bubble
- Unicorn Bubble
- Wikiversity: Learning Resources on Initial Financing
![Startup Company [Early Access] - #8 - Future Ventures - Let's Play ...](https://lh3.googleusercontent.com/blogger_img_proxy/AEn0k_uDEq0XqSqUnvP3gx25Ok5W_ckIrG37aod0Xw-2OJdjvmPh1CB9ng9JfYiikdpwSoAdXuZGjlS9Z7OvDLNwXmnoyHET_39j7WlcbJo3Ri_eM8K2IWwmgc5ZH8mx4H2pGEP0qNAw8cu0=s0-d "Startup Company [Early Access] - #8 - Future Ventures - Let's Play ...")
References
Source of the article : Wikipedia
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