What is a Startup?

The world is evolving fast which is opening doors for innovations and new ideas to replace obsolete technology. Every day there is a demand for new offerings, products, and services that can revolutionize the way people live. Startups play a pivotal role in being the catalyst in infusing those new products, services, and solutions to solving complex problems in the world of science, environment, technology, etc, and simply our daily routines. So, many of us have questions such as what is a Startup? What are the types of startups? How are they funded?

What is a Startup?

A Startup is a young company that has been established by one or more entrepreneurs to bring innovation and new ideas for products and services. A Startup is different from an established organization as it is a new organization that is looking for a business model that is scalable and repeatable while established an established business already has a business model and is entirely focused on executing its business model. A startup in its initial stages is in a high-risk zone where it could fail too.

Also Read: 5-Minute Career Test: Your Favorite Color Can Determine Your Perfect Career

Types of Startups

Startups are classified into different types:

Social Startups: These are newly found companies that are focused on doing good for society such as charities and non-profit organizations.

Scalable Startups: These are the startups that most often are established in the technology sector. Tech startups have a huge scope of development in the era of digitization and a technology-savvy world. These startups are established by a group of entrepreneurs who receive financial support or funding from investors. With success, these starts go on to become national or international companies.

Big Business Startups: These are the disruptors that come into existence to design innovative technologies, products, and services to meet the growing demands of modern customers.

Buyable Startups: These are the startups that often are established in the field of software and technology industry. Eventually, tech giants such as Amazon, Facebook, etc buy these small-scale startups to build on their products.

Lifestyle Startups: These are the startups that are built by people based on their passion and interests. Lifestyle startups can be a dance academy, or online shop on Instagram, etc

Small Business Startups: These are self-funded startups that work on a small scale but offer services for regular products or consumer everyday routine. Bakers, travel agencies, grocery stores, salons, etc are some examples of small business startups.

Also Read: What is Revised ITR Filing? Everything you need to know

Funding of Startups

Startups that attract funding from investors usually go through rounds of funding that involve:

Bootstrapping: This is the preliminary round where the startup is usually funded by the self, friends, family, and other social networks.

Seed Funding: This is the stage where high-net-worth individuals called angel investors come to invest in the early stages of a startup.

Series A, B, C, and D Funding: This is the stage where venture capital firms invest huge amounts of funds into a startup.

IPO: This is the stage where a startup becomes a public company and finally launches itself for IPO listing or direct listing on a stock exchange.

Also Read: Personality Development Tips: 5 Body Language Mistakes to Avoid During Interview

Also Read: Personality Development Tips: Know 5 Body Language Gestures That Leave Bad Impression

Also Read: Personality Test: Your Favorite colour Reveals These Personality Traits

Also Read: Born in August? Know Interesting Personality Traits, Career, and Love Life Facts

and many more!