What is Startup?
The CEO of a large company says that a StartUp is a company that believes in solving a problem whose solution is not obvious and in which there is no gurantee of success.
So if you also want to know what this start up India is, then read this post completely and by the end you will also have an idea what exactly is a StartUp company, then let's start without delay.These companies are often made new and are in the development phase which needs strong market research.
The word "StartUp" became so popular because when many new dot-com companies were formed during the dot com bubble, people used to call these companies as startup companies at that time. Which gradually became a trend of being named after new companies.
We can also think of a startup company as a small child. Which is still time to move forward. These companies offer a product or service that was not available in the market earlier, which benefits many people from it. Con-founders are cones
Co-founders are said to be those who are involved with them during the growth of the start-up companies. Anyone can become a co-founder, whether he is a man of the company or of outside.
The co-founders are mainly Entrepreneurs, Engineers, Hackers, Venture Capitalist, Web Developer, Web Designers and others who are already associated with these companies.
Hence, there is no legal definition of co-founders. Someone can be called a Co-Founder only if he has knowledge about the board of directors, investors or shareholders and who is able to keep his or her intention in front of these people and other employees of the companies, listen to it and execute it. Think to do
Since there is no definitive agreement of co-founders, it is a legitimate thing to have disputes later.
What is internal startups?
Large and well-established companies often try how to create their own innovation, for this they themselves prepare Set Ups which are called "internal startups".These companies continue to grow into a separate entity. And when they come to the market with their new product, then they have to launch it under that companies.
Due to this, big companies do not have to acquire other companies anywhere. When they can make their own products.
A Startup Is Always Temporary
The organizational function of any Startup is to always look for a repeatable and scalable business model. A famous person has said that Startup Founder has three main functions:
1. Provide a vision about the product and its features
2. Create a series of hypotheses in relation to all things of the Business Model: as which ones are customers? What are distribution channels? How can we create and finance a company? And so on.
3. Quickly validate that the model is correct by seeing how the customers behave.
How are startups funded?
If we talk about startup and small business, then in the initial dur, it is funded by Founders saving, friends, family members or bank loans only.
But if StartUp is successful then it gets additional funding from Angel Investors. And later from Venture Capitalist and then from IPO (Initial Public Offering).
And with such funding, the equity of the Startup founder dissipates to a large extent but the owenership of the company diversifies.
And in such a situation, according to the independent entity of Startup, it is not able to remain, after which a big company acquistion or merge with another company. For a small business owner, losing their control like this can suffocate, but it is very important for growth in the startup.
If seen, both startup owner and small business owner are entrepreneurs but the primary function and funding of both are different according to their own business model.
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