A startup company is an entrepreneuiral venture which is typically a newly emerged, fast-growing business that aims to meet a marketplace need by developing or offering an innovative product, process or service. A startup is usually a company such as a small business, a partnership or an organization designed to rapidly develop a scalable business model.
Startup companies can come in all forms and sizes. Some of the critical tasks are to build a co-founder team to secure key skills, know-how, financial resources and other elements to conduct research on the target market. Typically, a startup will begin by building a first minimum viable product (MVP), a prototype, to validate, assess and develop the new ideas or business concepts. In addition, startups founders do research to deepen their understanding of the ideas, technologies or business concepts and their commercial potential.
Startups usually need to form partnerships with other firms to enable their business model to operate. To become attractive to other businesses, startups need to align their internal features, such as management style and products with the market situation. In their 2013 study, Kask and Linton develop two ideal profiles, or also known as configurations or archetypes, for startups that are commercializing inventions .
Startup investing is the action of making an investment in an early-stage company (the startup company). Beyond founders’ own contributions, some startups raise additional investment at some or several stages of their growth. Not all startups trying to raise investments are successful in their fundraising. The solicitation of funds became easier for startups as result of the jobs act Prior to the advent of eqiuty crowdfunding, a form of online investing that has been legalized in several nations, startups did not advertise themselves to the general public as investment opportunities until and unless they first obtained approval from regulators for an initial public opening(IPO) that typically involved a listing of the startup’s securities on a stock exchange.
The first known investment-based crowdfunding platform for startups was launched in Feb. 2010 by Grow VC,followed by the first US. based company profounder launching model for startups to raise investments directly on the site, but ProFounder later decided to shut down its business due regulatory reasons preventing them from continuing,having launched their model for US. markets prior to JOBS Act. With the positive progress of the JOBS Act for crowd investing in US. The idea of these platforms is to streamline the process and resolve the two main points that were taking place in the market.