What is a Startup

Startup Kian Investing

Kian Investing Investment Group is an accelerator and active in the stock market by presenting authoritative scientific articles in the field of Startup

What Is a Startup

The term startup refers to a company in the first stage of its operations. Startups are founded by one or more entrepreneurs who want to develop a product or service for which they believe there is a demand. These companies generally start with high costs and limited revenue which is why they look for capital from a variety of sources such as venture capitalists

KEY TAKEAWAYS

A startup is a company that’s in the initial business stage
Until the business gets off the ground, a startup is often financed by its founders. and the startup attracts outside investment
There are many different ways to fund startups including family and friends, ventur capitalists, crowdfunding, and credit
Startups also have to consider where they’ll do business and their legal structure

Understanding Startups

Startups are companies or ventures that are focused around a single product or service that the founders want to bring to market. These companies typically don’t have a fully developed business model and, more importantly, lack adequate capital to move on to the next phase of business. Most of these companies are initially funded by their founders

Many startups end up turning to others for more funding—family, friends, and venture capitalists. Silicon Valley in California is known for its strong venture capitalist community and is a popular destination for startups, but is also widely considered the most demanding arena. Startups can use this seed capital to invest in research and to develop their business plans. Market research helps determine the demand for a product or service, while a comprehensive business plan outlines the company’s mission statement, future visions, and goals as well as management and marketing strategies

Dotcoms were the most common type of startup in the 1990s. Venture capital was extremely easy to obtain during this time due to a frenzy among investors to speculate on the emergence of these new types of businesses. Unfortunately, most of these internet startups eventually went bust due to major oversights in their underlying business plans such as a lack of sustainable revenue. However, there were a handful of companies that survived when the dotcom bubble burst. Both Amazon and eBay are examples of such companies