What is Startup?
Whether some people call it a dream and some vision as the future that is near and definite to come by, having a company of your own, being a boss, and having the vision to contribute and changing society is an enticing journey for a person new to startups.
For some angel investors, they are a source of booming earning potential investment, for the CEO it is the vision and a big change that can happen to the society, and for someone in a layman’s language, it can too be a decision that is just perfect to dream but not to really believe in it.
Table of Contents
Slowly but Surely, I will be there!
So what Startup actually means?
A startup is a new and young company with potential growing ideas and has the capacity to grow and be a big name in the industry or even can create its new niche or market.
They are the starting point and new to startup 🌠
From the name of the Startup word itself, it implies to start and to up the idea, that is to initiate an idea and to make sure that it comes into reality by climbing through the ladder of every stage of becoming a big organization.
Startup’s root mantra is in the word “Innovation”
You may be familiar with most of the big names in the market which started their journey as startups.
Think about Facebook, Amazon, Apple, Netflix, Google, etc, and a lot more names in the list. They all were startups!
How does Startup work really?
Startups worked on the sole characteristics of Uniqueness.
Everything they do, they think, and want to implement is new in the market and hence comes with a high risk.
What we today see and acknowledge is the big Multinational companies ( MNC’s ) that are earning an unimaginable amount of earning potential with stable and growing past records.
Startups have the capability to build on ideas very quickly. They often do this through a process called iteration in which they continuously improve products through feedback and usage data. Oftentimes, a startup will begin with a basic skeleton of a product called a minimal viable product (MVP) that it will test and revise until it’s ready to go to market.
Where does the funding or investment come from?
Money is the most important drive to make sure that the idea and innovation have a smooth vehicle to run on the road to growth.
However, through various trials and errors and past observations, startups have adopted a set of processes or ways through which they acquire money or in terms of startups, Funding.
Startups generally raise money via several rounds of funding:
- The initial or preliminary round is known as bootstrapping, when the founders, their families, or friends invest in the business since they were the ones who believe in their startup ideas.
- After that, the next step which comes is the seed funding from what we nowadays call as “angel investors”
Who are they? In simple terms, they are high-net-worth individuals who invest in early-stage companies and believe their startup ideas will grow and become big in the market.
- Next, there are Series A, B, C, and D funding rounds, primarily led by venture capital firms, which invest tens to hundreds of millions of dollars into companies.
- Finally, a startup may decide to become a public company and open itself up to outside money via an IPO, an acquisition by a special purpose acquisition company (SPAC), or a direct listing on a stock exchange. Anyone can invest in a public company, and the startup founders and early backers can sell their stakes to realize a big return on investment.
So this is how they receive, acquire and invest the funding received in their dreamed startup business!
Can anyone be a Startup entrepreneur?
Protection is needed by Startup to flourish
Have you ever thought of why not everyone is initiating the Startup process even though a huge number of ideas are still left unexplored? Or any one new to startup around you?
“It’s not easy to be an entrepreneur, especially the one in – Startup.”-WitMazer
Even though the Government is taking active initiatives and rolling out policies in the market for Startups, it’s not just about the money or funding.
There should be a collaborative and cooperative team that believes in the idea in and out.
There should be an Idea in the startup core enough capable of running a long walk in the market
There should be an urge and never-ending will to believe and support the idea.
Beginning of everything, every process, every startup is HARD, By hard we literally mean it…
But always keep in mind, our successful readers that whatever it takes, you are worthy of!
Because you are the WitMazers!