This is the age of startups. In this blog we tell you everything about startups, from their origin to financing.
A startup is a young company with an innovative idea that uses new technology and is focused on rapid growth.
Often there is a young person behind a startup, but this is of course not always the case.
Examples of successful startups are Uber, AirBnB and SpaceX. Dutch startups are, for example, Adyen, Swapfiets and Ticketswap.
How do you start a startup?
With a good idea. But then you're not there yet. It is crucial that you give everything for it: your startup is your life.
Create a prototype and share your idea with believers, friends and family (BFFs). Then you develop your idea and product, you find a co-founder, you ensure financing and growth, growth, growth.
Financing a startup depends on the stage in which the young company is.
Do you want to know which phase your company is in and which investors belong to it? check our corporate finance blog.
Usually, whoever runs the startup puts money into the venture first. Then come the believers, friends and family. Next, you should focus on angel investors: individuals with a lot of money (and knowledge of your niche).
Then you come to professional VCs (Venture Capitalists). They invest money in companies where they run an above-average risk of failure. On the other hand: if it does work out, they earn a lot from it.
At the next step you are already in the phase of acquisitions or partnerships. Finally, you can go for an IPO, an Initial Public Offering. That means you go on the stock market. Then the shareholders are your investors.
Startups must be scalable
A startup is based on a specific solution to a problem. This starts as a small business, but in principle a startup should be able to grow into a company that operates worldwide.
Usually a startup also brings a minimum viable product on the market. This is a product that is actually not finished yet, but is just good enough to be accepted. It is then further developed on the basis of user experiences. This costs less time and money than bringing a fully developed product to the market. Especially if it doesn't catch on.
Future of your startup
How to make a good exit? We have written a blog about how to realize a dream exit.
Running a startup is your soul and bliss. But don't forget to think about your exit too. There comes a time when you want or need to get out. So make sure you have your exit strategy in order. A successful startup has a good strategy from start to finish.