A startup Business or startup is a company, organization or partnership intended to seek a temporary repeatable and scalable business model. These companies, generally newly created, are in a phase of development and research for markets. The term became popular internationally during the dot-com bubble when a great number of dot-com companies were founded.
tartup companies can come in all forms, but the phrase "startup" is often associated with high growth, technology-based companies, many of which seek to disrupt an existing market or create a new market. An essential task of setting up a business is to conduct research to validate, assess and develop ideas and business concepts, and more opportunities to further establish and understanding of ideas business concepts and their commercial potential. A company may cease to be a start-up that goes several steps, such as becoming a publicly traded IPO, or cease to exist as an independent entity via a merger or acquisition. Companies may also fail and stop working completely.
The key stages of a startup business
Investors are generally more attracted to these new companies distinguished by their risk / reward profile and scalability. In other words, they must reduce the cost of seed, the risk is high and the potential higher return on investment. Successful startups are typically more scalable than an established business, in the sense that they can potentially grow rapidly with limited investment of capital, labor or land.
Funding cycle start
Startups encounter several unique options for funding. The venture capital and angel investors may help startup companies begin operations, exchanging money for an equity stake. In practice, however, many startups are primarily funded by the founders themselves. Factoring is another option, but not unique to startups. Some funding opportunities are also growing in the financing of the crowd.
If the value of a company based on its technology, it is often just as important for business owners to obtain the protection of intellectual property for their idea. The Economist magazine estimates that up to 75% of the value of U.S. public companies is now based on their intellectual property (against 40% in 1980). Often, 100% of the value of a small startup company is based on its intellectual property. As such, it is important for technology-based start-up companies to develop a solid strategy for the protection of their intellectual capital as soon as possible.
The factual accuracy of part of this article (those related to section) may be compromised as a result of information out-of-date. Please update this article to reflect recent events or newly available information. (November 2010)
Start-up companies, particularly those related to new technologies, sometimes produce huge returns to their creators and investors - a recent example of such was Google, whose creators are now billionaires through their ownership. However, the failure rate of start-ups is very high.
While there are startup businesses created in all types of businesses, and around the world, some places and sectors are particularly associated with startup companies. The Internet bubble of the late 1990s was associated with a large number of Internet companies start selling some technology to provide Internet access, others use the Internet to provide services. Most of this activity was localized startup in Silicon Valley, a startup ecosystem of northern California known for the high level of business activity started:
tartup companies can come in all forms, but the phrase "startup" is often associated with high growth, technology-based companies, many of which seek to disrupt an existing market or create a new market. An essential task of setting up a business is to conduct research to validate, assess and develop ideas and business concepts, and more opportunities to further establish and understanding of ideas business concepts and their commercial potential. A company may cease to be a start-up that goes several steps, such as becoming a publicly traded IPO, or cease to exist as an independent entity via a merger or acquisition. Companies may also fail and stop working completely.
The key stages of a startup business
Investors are generally more attracted to these new companies distinguished by their risk / reward profile and scalability. In other words, they must reduce the cost of seed, the risk is high and the potential higher return on investment. Successful startups are typically more scalable than an established business, in the sense that they can potentially grow rapidly with limited investment of capital, labor or land.
Funding cycle start
Startups encounter several unique options for funding. The venture capital and angel investors may help startup companies begin operations, exchanging money for an equity stake. In practice, however, many startups are primarily funded by the founders themselves. Factoring is another option, but not unique to startups. Some funding opportunities are also growing in the financing of the crowd.
If the value of a company based on its technology, it is often just as important for business owners to obtain the protection of intellectual property for their idea. The Economist magazine estimates that up to 75% of the value of U.S. public companies is now based on their intellectual property (against 40% in 1980). Often, 100% of the value of a small startup company is based on its intellectual property. As such, it is important for technology-based start-up companies to develop a solid strategy for the protection of their intellectual capital as soon as possible.
The factual accuracy of part of this article (those related to section) may be compromised as a result of information out-of-date. Please update this article to reflect recent events or newly available information. (November 2010)
Start-up companies, particularly those related to new technologies, sometimes produce huge returns to their creators and investors - a recent example of such was Google, whose creators are now billionaires through their ownership. However, the failure rate of start-ups is very high.
While there are startup businesses created in all types of businesses, and around the world, some places and sectors are particularly associated with startup companies. The Internet bubble of the late 1990s was associated with a large number of Internet companies start selling some technology to provide Internet access, others use the Internet to provide services. Most of this activity was localized startup in Silicon Valley, a startup ecosystem of northern California known for the high level of business activity started:
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