A startup company or start-up is a company with a limited operating history. Generally a company is a form of Business organization. The precise definition varies These companies, generally newly created, are in a phase of development and research for markets. Sao Paulo Stock Exchangejpg|thumb| Virtual market arena where buyer and seller are not present and trade via intemediates and electronical information They have an uncertain future, and may result in a spectacular success, or failure. The term became popular internationally during the dot-com bubble when a great number of dot-com companies were founded. The " dot-com bubble " (or sometimes the " IT bubble " was a speculative bubble covering roughly 1995–2001 (with a climax on March 10 A Dot-com company, or simply a dot-com, is a company that does most of its business on the Internet, usually through a Website that uses the popular A high tech startup company is a startup company specialized in the high tech industry. High tech is Technology that is at the cutting edge —the most advanced technology currently available
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Evolution of a startup company
While slow-growth businesses may be startups, investors are most attracted to those new companies distinguished by their risk/reward profile and scalability. That is, they have lower bootstrapping costs, higher risk, and higher potential return on investment. This is the history of bootstrapping or booting which began in the 1880s as a leather strap and evolved into a group of metaphors that share a common meaning a self-sustaining In Finance, rate of return ( ROR) also known as return on investment ( ROI) rate of profit or sometimes just return, is 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.
Startups enjoy several unique options for funding. Venture capital firms and angel investors may help startup companies begin operations, exchanging cash for an equity stake. Venture capital (also known as VC or Venture) is a type of Private equity capital typically provided to immature high-potential growth companies An angel investor or angel (known as a business angel or informal investor in Europe) is an affluent individual who provides capital for a business Software for Fixed assets management and Stock control developed in 2004. In practice though, many startups are initially funded by the founders themselves. Factoring is another option, though not unique to start ups. Factoring is a word often misused synonymously with accounts receivable financing.
A company may cease to be a startup as it passes various milestones, such as becoming profitable, or becoming publicly traded in an IPO, or ceasing to exist as an independent entity via a merger or acquisition. Initial public offering (IPO, also referred to simply as a "public offering" is when a company issues Common stock or shares to the public for the first
Startup companies, particularly those associated with new technology, sometimes produce huge returns to their creators and investors - a recent example of such was Google, whose creators are now billionaires through their share ownership. Google Inc is an American public corporation, earning revenue from advertising related to its Internet search, e-mail, online However, the failure rate of startup companies is very high. Based on a research, Founder CEOs of high-tech companies can typically expect their stock to be worth about $6,500,000 (statistical average) if the company succeeds in going public(in 1997)[1]
While there are startup businesses created in all types of businesses, and all over the world, some locations and business sectors are particularly associated with startup companies. High tech is Technology that is at the cutting edge —the most advanced technology currently available The Internet bubble of the late 1990s was associated with huge numbers of internet startup companies, some selling the technology to provide internet access, others using the internet to provide services. The " dot-com bubble " (or sometimes the " IT bubble " was a speculative bubble covering roughly 1995–2001 (with a climax on March 10 Most of this startup activity was located in Silicon Valley, an area of northern California renowned for the high level of startup company activity. For the valley nicknamed "Silicone Valley" see San Fernando Valley.
The first critical and pivotal task in setting up a business is to conduct research in order to validate, assess and develop the ideas or business concepts in addition to opportunities to establish further and deeper understanding on the ideas or business concepts as well as their commercial potentials.
Startupers
Startupers is a term used in the software industry to describe people involved in the creation of high tech startups. High tech is Technology that is at the cutting edge —the most advanced technology currently available Typically, startupers are entrepreneurs, venture capitalists, software engineers, web developers, and others involved in the ground level of a new high tech venture. An entrepreneur is a person who has possession over a company enterprise, or Venture, and assumes significant accountability for the inherent risks and the outcome Venture capital (also known as VC or Venture) is a type of Private equity capital typically provided to immature high-potential growth companies Software engineering is the application of a systematic disciplined quantifiable approach to the development operation and maintenance of Software. A web developer is a Software developer or Software engineer who is specifically engaged in the development of World Wide Web applications or distributed High tech is Technology that is at the cutting edge —the most advanced technology currently available Venture capital (also known as VC or Venture) is a type of Private equity capital typically provided to immature high-potential growth companies
See also
Further reading
Technical guides
- New Venture Creation, Jeffry A. Business incubators are programs designed to accelerate the successful development of Entrepreneurial companies through an array of business support resources and services developed A business plan is a formal statement of a set of business goals the reasons why they are believed attainable and the plan for reaching those goals Entrepreneurship is the practice of starting new Organizations or revitalizing mature Organizations particularly new Businesses generally in response to identified In corporate finance a liquidity event is an Umbrella term that describes one of several events typically a purchase of a Corporation or an Initial public offering The concept of Not Just For Profit ( NJFP) captures an expanded spectrum of values for defining and measuring For Profit Private sector organizations not A Dot-com company, or simply a dot-com, is a company that does most of its business on the Internet, usually through a Website that uses the popular In Finance, private equity is an Asset class consisting of equity Securities in operating companies that are not Publicly traded on Initial public offering (IPO, also referred to simply as a "public offering" is when a company issues Common stock or shares to the public for the first An exit strategy is a means of escaping one's current situation typically an unfavourable situation For the valley nicknamed "Silicone Valley" see San Fernando Valley. Green Valley is a Census-designated place (CDP in Solano County, California, United States. A stock market bubble is a type of Economic bubble taking place in Stock markets when price of Stocks rise and become overvalued by any measure of Stock Venture capital (also known as VC or Venture) is a type of Private equity capital typically provided to immature high-potential growth companies Factoring is a word often misused synonymously with accounts receivable financing. Timmons, ISBN 0-07-287570-4
- How to Start a Startup, by Paul Graham
- Why Not Not Start a Startup, by Paul Graham
- 11 Golden Tips to Cut Costs when Launching a Startup, by Businesshackers
- The Flipping Start-Up Guy by Michael De'Shazer
Startup biography
- "High Stakes, No Prisoners: A Winner's Tale of Greed and Glory in the Internet Wars" Charles Ferguson, ISBN 0-8129-3143-2
- "Startup: A Silicon Valley Adventure", Jerry Kaplan ISBN 0-395-71133-9
- "Burn Rate:How I Survived the Gold Rush", Michael Wolf, ISBN 0-684-84881-3
- "Go BIG or Go HOME: How the next generation of startup companies think BIG, grow FAST, and dominate markets overnight", Wil Schroter, ISBN 1-599-71274-1
- Hervé Lebret, "Start-Up : what we may still learn from Silicon Valley", CreateSpace, 2007, ISBN 1-434-82006-8
References
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