Start-up Businesses

15
Startup Companies

description

A discussion of business start-up culture.

Transcript of Start-up Businesses

Page 1: Start-up Businesses

Startup Companies

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What is a “start-up”?

A startup company or startup is a company with a limited operating history. These companies, generally newly created, are in a phase of development and research for markets. The term became popular internationally during the dot-com bubble when a great number of dot-com companies were founded.

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Business incubator

Business incubators are programs designed to accelerate the successful development of entrepreneurial companies through an array of business support resources and services, developed and orchestrated by incubator management and offered both in the incubator and through its network of contacts.

Unlike many business assistance programs, business incubators do not serve any and all companies. Entrepreneurs who wish to enter a business incubation program must apply for admission.

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Venture capital

Venture capital (VC) is money provided to early-stage, high-potential, high risk, growth startup companies. The venture capital fund makes money by owning part of the the companies it invests in, which usually have a novel technology or business model in high technology industries, such as biotechnology, IT, software, etc.

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Angel investor

An angel investor or angel (also known as a business angel or informal investor) is an affluent individual who provides capital for a business start-up, usually in exchange for convertible debt or ownership equity. A small but increasing number of angel investors organize themselves into angel groups or angel networks to share research and pool their investment capital. All the same, angels typically invest their own funds, unlike venture capitalists, who manage the pooled money of others in a professionally-managed fund.

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Dot-com bubbleThe dot-com bubble (also known as the Internet bubble and the Information Technology Bubble) was a bubble economy covering roughly 1995–2000 during which stock markets in industrialized nations saw their value rise rapidly, primarily from growth in the new Internet sector and related businesses.

Many people are always concerned about the rise of a new bubble economy, so it is sometimes difficult to raise money for your start-up business if too many investors believe that the market has peaked.

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Exit strategy

An exit strategy is a means of leaving one's current situation, either after a predetermined objective has been achieved, or as a strategy to mitigate failure. An organization or individual without an exit strategy may be in a quagmire. At worst, an exit strategy will save face; at best, an exit strategy will peg a withdrawal to the achievement of an objective worth more than the cost of continued involvement.

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Liquidity event

In corporate finance, a liquidity event is an umbrella term that describes one of several events, typically a purchase of a corporation or an initial public offering. A liquidity event is a typical exit strategy of a company, since the liquidity event typically converts the ownership equity held by a company's founders and investors into cash.

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What do you think?

• Do you think anyone can start their own business?

• What are the dangers of having your own business?

• What kind of business would you like to start? Would you prefer to start a “bricks ‘n’ mortar” business or an Internet business?

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Entrepreneurs

An entrepreneur is an owner or manager of a business enterprise who makes money through risk and initiative. The term was originally a loanword from French and was first defined by the Irish-French economist Richard Cantillon. Entrepreneur in English is a term applied to a person who is willing to help launch a new venture or enterprise and accept full responsibility for the outcome. If a business person is known for starting several different businesses, that person might be known as an entrepreneur.

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Sean ParkerSean Parker (born 1979) is an American Internet technology businessman and entrepreneur. He co-founded Napster, Plaxo, Causes, and Airtime, and was Facebook's founding president. His net worth is estimated at $2.1 billion.

When Parker was 15, he met 14 year-old Shawn Fanning over the internet. A few years later, Fanning and Parker co-founded Napster, a free file-sharing service for music. Parker raised the intial $50,000, and they launched Napster in June 1999. Within a year, the service had tens of millions of users. Lawsuits by various industry associations eventually shut down the service. Napster has been called the fastest growing business of all time, is credited with revolutionizing the music industry

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Elon MuskElon Musk (born June 28, 1971) is an American engineer and entrepreneur best known for co-founding PayPal, SpaceX and Tesla Motors. He is currently the CEO and CTO of SpaceX, CEO and Product Architect of Tesla Motors and Chairman of SolarCity. Musk is best known for having created the first viable production electric car of the modern era (Tesla Roadster), for designing a private successor to the Space Shuttle (F9/Dragon) and creating the world's largest Internet payment system (PayPal). Musk currently holds both a B.S. in Economics and B.A. Physics from the University of Pennsylvania. His net worth is estimated to be over $872 million.

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Tesla Motors

Tesla Motors, Inc. is a Silicon Valley-based company that designs, manufactures and sells electric cars and electric vehicle components. It was the only automaker building and selling a zero-emission sports car in serial production (as opposed to prototype or evaluation series production).

Tesla Motors' first production vehicle, the Tesla Roadster, is an all-electric sports car. The car has a range of 245 miles (394 km) per charge. The Tesla Roadster can accelerate from zero to 60 mph (97 km/h) in under 4 seconds and has a top speed of 125 mph (201 km/h). The base price of the car is US$109,000.

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Larry EllisonLawrence Joseph "Larry" Ellison (born August 17, 1944) is the co-founder and chief executive officer of Oracle Corporation, one of the world's leading enterprise software companies. As of 2011, he is the third wealthiest American citizen, with an estimated worth of $33 billion.

During the 1970s, Ellison worked for Ampex Corporation. One of his projects was a database for the CIA, which he named "Oracle". In 1977, he founded Software Development Laboratories (SDL). In 1979, the company was renamed Relational Software Inc., later renamed Oracle after the flagship product Oracle database. Today Oracle is the largest database software company in the world with an annual revenue of $35.6 billion.

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What do you think?

• What business skills do you have?• Do you think you’d be a tough person to work

for?• Do men or women make more successful

business people?• Who would be your business hero?