What Is Startup & How Startup Are Funded

in #business6 years ago (edited)

The Ceo Of A Large Company Says That A Startup Is A Company That Believes In Solving A Problem Whose Solution Is Not Clear And Does Not Have Any Gurantee To Be Successful. So, If You Also Want To Know What Is Start Up, Then Read This Post Completely And By The End You Will Get An Idea That What Exactly Is StartUp Company. Then Let's Begin Without Delay.

What Is Startup Company

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A Startup Company Or Startup Is Called An Organization That Is Designed To Achieve A Large Scalable And Repeatable Business Model. These Companies Are Often New And They Are In The Phase Of Development Which Requires A Strong Market Research. These Words "Startup" Became So Much More Popular Because When There Were Many New Dot-com Companies During Dot-Com Bubble, People Used To Call These Companies As Startup Companies At The Time. Which Gradually Became A Trend Of The Names Of New Companies.

We Can Understand A Startup Company Like A Child, Which Is The Time To Move Forward. These Companies Offer A Product Or Service That Was Not Previously Available In The Market, Which Makes It Very Profitable For Other People.

What Is Startup Culture

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startup sometimes values casual attitude So That The Efficiency Of Employees In Their Workplace Can Be Enhanced. In 1960, By A Study By Sir Douglas Mcgregor, It Has Been Found That There Is No Need Of Stressed Punishment And Rewards In The Workplace, To Get Good Results, It Can Happen Without Them Too. Some People Are Motivated Themselves Only To Do The Incentives Of The Work To Live.

When These Stress Was Lifted From Them, They Found That The Workers And Researchers Are Focusing On Their Work, Which Is Increasing The Overall Productivity. This Gives Them The Potential To Achieve Even More For Their Company.

These Cultures Are Gradually Evolving And Are Adopting Big Companies So That They Can Capture The Bright Minds Of Startups. In Keeping With This Practice, Google Has Purchased Many Companies In The Past Few Years Which They Thought Could Provide Better Returns. With This, Such Cultures Do Not Have Any Stress While Working And They Can Give Their Good Productivity To The Company. They Feel More Comfortable By Doing So They Can Do Their Work.

Co-Founders

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Co-founders Are Called Those Who Have Been Involved With Him During The Growth Of Startup Companies. Anyone Can Become A Co-founder, Whether It's A Company Or A Person's Outside. Mainly Co-Founders Are Entrepreneurs, Engineers, Hackers, Venture Capitalist, Web Developer, Web Designers And Others Who Are Already Connected To These Companies.

Therefore Co-Founders Do Not Have Any Legal Definition. Anyone Can Be Called Co-Founder Only When He Has Information About Board Of Directors, Investors Or Shareholders, And Who Is Keeping His Intention, In Front Of These People And Other Employees Of Companies, Listen To This And Act Think About It. Since There Is No Definitive Agreement Of Co-Founders, It Is Justified To Have Disputes In Future.

A Startup Is Always Temporary

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The Organizational Function Of Any Startup Is That They Always Seek A Repeatable And Scalable Business Model. A Famous Person Has Said That The Startup Founder Has Three Main Functions:

  1. Provide A Vision About The Product And Its Features

  2. Create A Series Of Hypotheses In The Case Of All Things In The Business Model: Such As Those Who Are Customers? What are Distribution Channels? How Can We Make And Finance The Company? And So On.

  3. Quickly Validate Whether The Model Is Correct By Seeing How The Behaviour Of The Customers Is.

How Are Startups Funded?

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If We Talk About Startup And Small Business, Then This Fund Is Funded By Founder's Savings, Friends, Family Members Or Bank Loans At The Initial Door. But If StartUp Is Successful Then It Gets Additional Funding From Investors. And Later From Venture Capitalist And Then From The Ipo (Initial Public Offering) And Such Funding, The Equity Of The Startup Founder Is Eliminated To A Great Extent, But The Company's Owenership Becomes Diversifies.

And In Such A Way, The Future Of Startup Is Not According To The Independent Entity, After Which A Large Company Acquistion or Merge With Another Company. A Small Business Owner May Have To Lose Such Control Of Its Own, But In Startup This Is Very Important For Growth.

If Seen, Startup Owner And Small Business Owner Are Both Entrepreneurs But Both Of Them Are Primary Function and Funding, According To Their Own Business Model.

Thankyou For Your Time To Read My Article If You Find This Article Is Informative Please Resteem
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Good ico buddy

@pankuvirat its not ico it's startup.

Good info, well explain bro.

Great to know...
Whats your opinion about tvf pitchers web series.?

great explained bro. Keep posting good stuff like this so we can have more knowledge on this kind of things..

Your article is very informative mate. Thanks for sharing this knowledge with us. Keep it up the great work

very well information. up voted to you.

Nice buddy .. this is really a good topic to discuss on steemit ..

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Informative and well explained article .... keep it up