Definición:
A startup is a company that is in the first stage of its operations. Within its life cycle is when the entrepreneur goes from the stage of the idea to obtaining financing, establishing the basic structure of the business and initiating operations or trade. A startup is a human institution designed to deliver a new product or service under conditions of extreme uncertainty.
Startups need to invest time and money in market research, which helps determine demand for a product or service. A start-up requires a global business plan that outlines the mission statement, future visions and goals, as well as management and marketing strategies.
Startup funding
Funding is a critical aspect for startups, and there are several ways to obtain the necessary resources:
- Crowdfunding: Platforms such as Kickstarter and Indiegogo allow people interested in a startup to contribute financially to its development. This method democratizes access to funds and validates the idea in the market.
- Venture investors: Silicon Valley is famous for its community of venture capitalists who invest in startups with high growth potential. These investors provide capital in exchange for equity participation, expecting a significant return.
- Small business loans: Startups can avail themselves of specific bank loans, such as microloans, which offer favorable short-term terms. To qualify, it is essential to present a detailed business plan that demonstrates viability and potential for success.
Differences between startups and small companies
Although often confused, startups and small and medium-sized enterprises ( SMEs) have fundamental differences:
- Objective and focus: SMEs focus on generating early revenues and providing a stable livelihood for their owners, with gradual and sustained growth. In contrast, startups seek to quickly capture market share, prioritizing accelerated growth over immediate profitability.
- Scalability: Startups are designed to scale quickly and expand globally, allowing them to grow their revenues exponentially. This approach distinguishes them from SMEs, which tend to operate in local or regional markets with more limited growth.
- Financing: Startups typically raise large amounts of venture capital in their early stages, while SMEs rely more on revenue generated from operations and traditional financing.
Examples of successful startups
In the dynamic business world, successful startups stand out for their ability to innovate and scale quickly. Below are a few examples of startups that have made a significant impact in their respective industries:
- Robinhood: Founded in 2013, Robinhood has revolutionized the brokerage industry by offering commission-free stock trading through its mobile app. This strategy has democratized access to the stock market, attracting millions of young users and first-time investors.
- DoorDash: Since its launch in 2013, DoorDash has become a leader in home food delivery service in the United States. Using advanced technology, DoorDash optimizes logistics and enhances the customer experience, which has enabled it to capture a large market share.
- Nuro: This startup, founded in 2016, focuses on the development of autonomous vehicles for the delivery of goods. Nuro seeks to transform urban logistics with innovative and sustainable solutions, offering an efficient and eco-friendly alternative for last mile delivery.
- Clubhouse: Launched in 2020, Clubhouse is an audio-based social networking application that allows users to engage in real-time conversations on a variety of topics. Its unique focus on voice interaction has quickly captured the attention of millions of users worldwide.
These startups have not only achieved financial success, but have also had a significant impact on their industries, redefining business models and setting new standards for innovation and service. Their ability to adapt quickly to market needs and deliver disruptive solutions is what sets them apart in today’s business landscape.