Hello, dear readers of the business magazine "site"! In this article, we want to tell what is a startup (Startup) in simple words how to create it and where to find sources of funding for the creation and development of projects.
How often do you hear the word startup these days? But it has become almost colloquial and is found in everyday life all the time. Some call a startup exclusively, others believe that startup It's basically any business project.
If there are aspiring entrepreneurs, novice investors, or at least financial theorists among the readers, then this publication will be useful for reading. Because the story will be about the most basic concepts associated with the term startup", the history of its occurrence, stages of creation And development of start-up projects and sources of their funding.
So, from this article you will learn:
- What is a startup in fact - the main features and features;
- How to create a successful startup project on your own;
- Where and how to find funding for startup projects;
- Who is a startup.
And the article is intended for those who know only by hearsay about financial undertakings of this kind and want to get to the bottom of the truth.
In the article, we described what a startup is, gave a complete definition of the term "startup" in simple words, gave the main stages and key points in the creation and development of projects, and also brought up relevant and interesting start-up projects for small businesses.
far away 1939 in the United States, near San Francisco, which was a center for the development of new technologies, graduates of Stanford University, David Packard And William Hewlett, developed the idea, tested it in practice and called their project a startup(from English startup - start, start).
Today this project is known as a huge company producing computers, laptops, office equipment and related software under the logo HP, or Hewlett-Packard.
Later, in 90s, many financiers and entrepreneurs argued over the definition of the term startup, calling the main characteristic either a short period of activity of a company, or mandatory rapid growth, or creating a product or service under high risk conditions.
The classic definition of the concept of a startup is considered to be the one formulated by the successful American startupper Steven Blank, namely:
« Startup is a temporary structure aimed at finding and implementing a scaled business idea” .
Simply put, startup – this is a new financial project, the purpose of which is rapid development and profit.
But is everything so simple? After all, if you rely on this short definition, then absolutely every newly created business can be proudly called a startup project.
No wonder the story about the history of the creation of Hewlett-Packard mentioned new technologies. After all, the first product released by HP was conventional generator, where a simple incandescent lamp was used as a resistor.
This innovation (namely innovation!) made it possible to make the operation of the generator more stable, and at the same time reduce its cost. So the project became competitive And profitable.
Thus, the main characteristic of startups is the use of some kind of latest technology, no one else previously untested.
For example, opening a traditional cafe- this is an ordinary business project, but if the service in this cafe is done in some completely innovative way, which is ideologically justified and financially justified, then this is a start-up project.
Other erroneous opinion is the belief that a startup is necessarily a project created on the Internet. There are, of course, reasons for such a statement: now the sphere of Internet business is developing so actively, that almost all innovations are connected precisely with the worldwide network. Therefore, most people who do not understand deeply the intricacies of business and new technologies call any Internet project at the same time a startup.
What other distinguishing characteristics of startups exist?
- Design and development of products, services, ideas, which is offered by a newly founded young company (for the implementation of the project it is necessary to create a legal entity), always engaged in a team of like-minded people.
In this team, everyone has their own responsibilities, but they are united by the belief that the result of a common cause is necessary for people and can improve life in general.
No matter how pathetic it may sound, but practice shows that only those startup projects that began precisely with the formation of such a global idea, were able to overcome all the difficulties of growth and development and turn into a long-term profitable business.
- A startup project, like any other undertaking, needs cash injections.
But it so happened that startups are almost always young people, students and even pupils, who do not have enough funds to develop their project, and their task is different: they must develop the idea, product, service that they offer.
Therefore, an important part of the work on the project is the search for sources of funding. Moreover, the further the project moves, the more funding it needs. Who usually finances such projects and where to find these sources will be discussed in detail in the continuation of the article.
Startup - a completely young project, which is based on some completely new idea that has not been used by anyone before;
The project can be created in any sphere of life: medicine, trade, transport, services, and so on;
The successful development of a startup project requires a close-knit team of developers and assistants, as well as sufficient funding until the time when the project becomes self-sustaining and profitable.
The main problems of startups and features in their creation
2. Features of Russian startups
Separately, it should be said about the specifics of the creation and development of start-up projects in Russia.
Everyone knows that Russia is far behind the West in shaping the business sphere. Therefore, what in the USA and Europe has long ceased to be a novelty and has acquired well-established forms, we have just going through the stage of rapid growth and formation. In particular, this statement applies to startups.
In Russia, there has never been a shortage of good brains and bright ideas. To date, there are also conditions for the implementation of interesting ideas. But as you know, in any barrel of honey there is a fly in the ointment.
The main problems of startups in Russia
Analysts identify 3 (three) problems faced by Russian startups:
Problem 1. Monetary support
The problem arises almost immediately when the project begins to need financial support.
Finding sources of financing is not easy even for adult serious entrepreneurs who own an established profitable business and a good reputation. What can we say about young people who do not yet have a reputation or profit from their project.
Banks they ask for a high interest rate for a loan, which in any case will have to be repaid.
Crowdfunding in the Russian segment is not yet so developed, and access to Western sites is associated with the complexity of converting and withdrawing money. We wrote in more detail about which Russian sites exist and so on in previous issues.
Venture funds put forward a lot of conditions before allocating financial support to a young team.
It remains to rely on personal funds, the help of family and friends, or try to seek business angel who will believe in the project and finance its development.
Overcoming this complexity, perhaps, in the first place determines the success of the entire project as a whole.
Problem 2. Startup development time
Another problem is related to ignorance of the theory of startup promotion in time. In itself, such a project is characterized not just by development, but by rapid development. And relegated to this stage from 6 (six) to 8 (eight) months. And then, if the project does not start to make a profit and pay for itself, they close it.
In Russia unsuccessful startup projects drag on for years, sucking money out of the startuppers and investors themselves and turning into unprofitable hopeless enterprises.
Problem 3. Project implementation
There is another fairly serious problem in Russia in the field of startups.
It consists in the lack of interest among large manufacturing companies in acquisition and further development successful innovations.
Whether this is due to the general policy of the state, which does not pay any attention to creating conditions for the emergence of this type of entrepreneurship, or simply the start-up industry is still at a low level - it is difficult to say.
Let's hope that over time, Russian startups will have strong support in the form of government agencies interested in the development of innovative technologies in practice and their implementation in existing industrial production.
At almost all stages of the development of a startup project in Russia, there are serious difficulties associated with the still imperfect ecosystem for such projects and the uncertainty of its further existence.
Stages of development of business projects + comparative table
3. Key stages of development of start-up projects
Like any project, a startup goes through several milestones on the way to its development.
It should immediately be noted that such a division is approximate And depends on purpose And project focus, from the scope of its activities and other criteria, which will affect both the speed of development, and the amount and level of investment in the project, and the result of the start-up company.
Such a division is based on the development of the same Stephen Blank, author of the book “ Four steps to enlightenment”, where he described the model of the gradual development of a startup and the careful use of investment funds. Later, this model formed the basis of the philosophy of the lean startup Eric Rees.
Stage number 1. The birth of a startup (pre-seed, or pre-seed)
This is the idea stage. The same exceptional idea, which is based on some kind of innovative product, service, technology capable improve and make life easier modify an existing product, enhance the effect of the drug, and so on, depending on the field of activity of the creator of the idea.
At this stage a team of like-minded people, assistants who believe in the effectiveness of the conceived business is formed, an approximate plan for the development of the idea is developed, options for finding investors are considered, and a prototype of the product, service, technology is tested, if it has already been created.
Funding is needed at this stage, even minimum. Most often, personal funds of developers, their families and friends are used here.
If necessary and possible, it makes sense for a startup to contact business incubator, where he can be provided with office space with connected communications and various types of services, from secretarial to legal and consulting.
Finding an investor at this stage is very difficult., since the project does not yet have any achievements by which one can judge its effectiveness.
Nevertheless, it is worth trying, as there are investment companies that specialize in investing in startups in the early stages of development.
Such organizations do not have large capital, but at the same time they have a strong analytical apparatus to conduct an examination and calculate the prospects for investment.
Stage number 2. The formation of a startup (seed, or seed)
At the seed stage of startup development, there is already a working model, a well-coordinated team has been created, where the functions of each of its members are clearly distributed, a detailed strategy for promoting the project to the market or to the user environment has been drawn up, a legal entity has been formed, the first steps have been taken in advertising and searching for investors.
The task of startups at this stage– debug the product promotion system and seek funding sources.
Yes, it is these components that are more important than bringing the product, service, technology to the ideal.
Because attracting investors is a painstaking task that requires time for direct search, negotiations, decision-making and conclusion of an agreement. Sometimes it can take a month or two, or even more.
During this time, it is quite possible to bring the product to mind and even get some profit, which will surely have a positive effect on the investor's decision to invest his money in such a promising undertaking.
Funding at this stage is already more serious, since it is required to pay for the work of team members, rent and maintenance of the office, if necessary, overhead costs.
Finding an investor at this stage- the task is also not an easy one. More investments are required than at the initial stage, and there is no profit yet or it does not cover current expenses. On the other hand, there are fewer risks.
And here the ideal option would be to find business angel , the person who calculate the prospects of the project And wants to invest in it a certain part of their own funds V.
Another source of funding at this time is crowdfunding (public funding) - receiving funds from a community of people who are ready to add up money to help, in this case, in the development of a promising start-up project.
Stage number 3. Early development of the project (Alpha version)
The early development stage is characterized by the existence of an operating company that makes a profit, occupies a prominent place in the market or other consumer environment, and is popular among product users.
The task of startups at this stage becomes the final formation of a product, service, technology, correction of identified defects, inaccuracies, that is, bringing it to an ideal state.
At the same time, the promotion of the product on the market continues, massive advertising in order to increase income or expand the consumer circle.
The need for additional funding remains, since the costs of maintaining the company and the implementation of marketing plans are growing, and although there is a profit, but does not cover all costs.
To attract investors early development stage – Golden time : they themselves find startups at this stage of development. This is understandable, because it is already visible and the effectiveness of the idea itself, And company profitability, And other characteristics pointing to the prospects for further cooperation.
Here you can connect investment venture funds And business accelerators- organizations that specialize in professional assistance to developed start-ups ready to grow into big business.
Stage number 4. Startup Expansion (Closed Beta)
Extension - this is the stage when the company has a completed functional product that brings constant profit. The marketing strategy at this stage has been worked out to the smallest detail, and the company is ready for scaling, that is, increasing sales, distribution in related areas of activity, or attracting a mass circle of consumers.
An important task at this time experts consider the correct construction of both the company itself and its relations with investors. What is meant? The owners of the company must decide on its future and, in accordance with this, distribute the shares among themselves and formalize relations with investors legally.
If the founders intend to develop the business, especially when one of them is also a product developer, then it is more logical to direct efforts towards obtaining high profits.
Besides, desirable restrictamount of investment from and place bets on business partners.
If the company is supposed to be sold or the project can function perfectly without the direct participation of the founder, then the work should be aimed at finding a suitable investor who want to buy a controlling stake at a fair price.
Having saved a small share, the startup gets the opportunity to take on other projects.
Stage number 4. Project Maturity (Open Beta)
In principle, the stage of maturity says that start-up project turned into a serious business when a company occupies a leading or close to it place in the market, has a high payback, the company staff is a team of highly qualified specialists, and their work is debugged.
Most often at this stage, the company begins issuing shares that generate income for its founders.
In other cases, the company is sold as a ready-made business.
Undoubtedly, in the development of each individual project there may be a different number of stages. It depends on the goal set by the startup developer, the field of activity and the overall development strategy of the company. And only one item remains mandatory for any startup project: each of them needs an investor!
The main sources of funding will be discussed in the next part of the article.
We propose to study the table, which describes what is needed for each stage of startup development, as well as where and what funding is needed:
Stage | What is there? | What is necessary? | Financing |
Origin (pre-sowing/pre-seed) | Formulated idea, developers, a team of like-minded people. | Drawing up a development plan, testing the product, searching for investors. | The minimum level, the use of personal finances, the involvement of family, friends; business incubator. |
Formation (sowing /seed) | The working version (prototype) of the product, the current team, a detailed marketing development plan. | Product introduction to the market / user acquisition, advertising, search for large investors. | Mid-level, third-party investors, business angels, crowdfunding. |
Early development (A-version) | Operating company, profit, prominent position in the market/popularity among users. | Finalization of the working version, correction of defects, promotion of the product to the market. | High level: venture funds, investment companies, private investors, business accelerator. |
Expansion (closed B version) | Finished functional product, stable profit, serious management, advertising. | Signing long-term contracts with partners, expanding the network, increasing the number of users. | Distribution of shares between founders and investors, search for a large investor. |
Maturity (open B version) | Leading position in the market, well-functioning work, high profitability. | Issue of shares, search for a buyer for a ready-made business. | Full self-sufficiency of the company. |
4. How to attract investments in startups - TOP-7 sources of funding for a Startup project
How often does it happen in life when I have an idea but no money"! And most often this happens with start-up projects, which, as mentioned above, are created by young people who do not have sufficient funds to finance their project.
Fortunately, the opposite is also often the case: I have money but no idea". There are always people who cannot come up with an idea themselves, but they have the gift to recognize promising projects, know how to develop them and are not afraid to invest in them.
We are talking about investors and investment organizations that specialize in investing in start-ups.
But in fact, there are many more sources of funding. Each of them has its own distinctive features and capabilities at one or two stages of project development.
Investing in startups - finding an investor for a startup: the main sources of project financing
This section of the article is devoted to a detailed analysis 7 (seven) main types, or sources, financing start-up projects.
1) Personal savings of startups
Used at the stages of origin and formation, when product idea, service, technology, as well as the business plan of the startup itself, are under development, and so far there is simply nothing to offer outside investors. By the way, we told in the last issue.
In addition, often the creator of the idea does not want to share all the details and subtleties of the model he is developing for fear of losing authorship and control over the development of the project.
Attracting third-party investments in this case is impossible, except for those that friends and immediate family are ready to make.
2) Funds of relatives and friends
They are used at the first stages of the project formation, when there are already costs, but there is no profit yet. At this point, friends and relatives can act not only as financial helpers, but also as early adopters of a product or service.
By the way, analysts say that this source of startup investment in Russia is very common and ranks second in terms of investment.
3) Crowdfunding
The so-called crowdfunding can be used by a startup at the initial stages of project development.
What is crowdfunding? This is a voluntary collection of funds, and not only material ones, for holding events or creating objects and values. social, public, political, cultural, scientific orientation.
Crowdfunding is carried out most often through the Internet., and it is characterized by a clear goal setting, announcement of the required amount, budgeting, or costing, and mandatory open information to the participants in the collection.
This type of financing is popular in the West since 2000 and since 2007develops in Russia. Internet platforms ( kickstarter.com in Europe and USA, boomstarter.com And planeta.ru in the Russian-speaking part of the Internet), through which you can declare your project and ask for financial assistance, will definitely offer the organizers to establish an award for participants.
Participation in the camp is rewarded in 3 (three) ways:
- Gifts or prizes;
- Getting a small share in a business project for which money is being raised;
- Getting a share of future profits or a return on investment.
Who mainly uses crowdfunding?
Most often, of course, money is collected to create music albums, filming, book publishing, social and charitable projects.
But, for example, in 2008, the notorious Barack Obama collected only for the first stage of his election campaign through crowdfunding over $250,000.
4) Credit
As mentioned above, credit- one of the most undesirable types of financing for a new project.
This is explained by quite understandable reasons, namely: startup - company with high risks, which are often difficult to calculate, it is also difficult to determine the level of profitability of the project.
Therefore, it is more logical to take a loan for the development of such a business at later stages, when these risks have already decreased and profitability has increased.
5) Business angel (obsolete Russian "philanthropist")
This is the name of independent investors who invest personal funds at the earliest stages of startup development and, on this basis, sometimes participate in project management.
At all, business angel is the dream of every startup. In addition to money, they also have professional experience in marketing and finance, and due to their interest in the success of the project, they can provide professional assistance at the stages of formation and early development.
But we must be aware that attracting a business angel at the first, most high-risk stages of project development will require transfer of a large share of the business to his ownership.
If the ultimate goal of a startup is just to sell a ready-made business, then there will be no problem. But if a startup intends to continue to engage in his enterprise, then relations with a business angel and his share of participation in the enterprise must be legally formalized at the very beginning of cooperation.
- Firstly, if the startup is fresh and of interest in social, scientific and public terms, then you can contact crowdfunding platforms which have already been discussed here.
- Secondly, if a startup project has a serious scientific, informational, industrial or technological focus, then it makes sense to contact specialized sites and forums, where not only general business issues are discussed, but also potential investors are present. They are also interested in finding profitable projects.
- Third, you can contact directly through the websites and offices of investment and venture companies. As a rule, when implementing state programs to support private business, it is these companies that hold seminars, conferences, competitions and exhibitions, where, in addition to information and advisory support, you can find future partners and investors.
Question 3. How to come up with a good idea for a startup project and bring it to life?
Good idea is what every successful startup starts with. There are people who generate such ideas with enviable constancy.
But what about those who, having both the desire and the ability to start their own business, cannot decide on an idea?
Experienced startups advise the following:
- An innovative idea should lie on the surface. That is, it should be something ordinary, but imperfect. So imperfect or inconvenient that you want to correct and thereby help all the people who are hindered by this imperfection. Therefore, look closely at the daily life around you and notice everything that needs to be improved and corrected.
- Don't be afraid to fantasize! All the latest achievements were once fiction, fantasy and seemed like a pipe dream. But it happened because someone was not afraid to turn the dream into reality.
- Write down any ideas and interesting thoughts, no matter if you came up with them yourself or heard from someone. And then try to try them on in real life. It is possible that this is how you will find that unique niche where you can apply your talents.
- If you feel that you have found something interesting, investigate the relevance of your idea. Forums on the Internet, specialized sites on the problem, conversation with potential consumers will help to find out the relevance of the idea, its scope and direction of development.
- If the idea is found, and you are sure of its prospects, then start acting: make a plan, look for helpers And like-minded people And run project to life. If you do not have sufficient funds even at the initial stages, try to save on everything you can and look for investors for further development.
- Be confident in yourself and your abilities, optimistic and determined to succeed. There will be many difficulties along the way, but the result is worthy of overcoming them.
8. Conclusion + related video
Modern life is developing at a rapid pace, which means that more and more new ideas will always appear that deserve attention and development. And since there are ideas, it means that there are opportunities for applying your abilities and talents.
In conclusion, we invite you to watch the video — “STARTUP SHOW by Dmitry POTAPENKO”, where young entrepreneurs present their start-up small business projects.
As well as a video on how an entrepreneur earned 17 million without investments:
You just need to believe in yourself, and, starting small, gradually move forward, to high results and achievements.
The best startups in Russia include:
A popular online learning service that helps anyone who wants to learn English or improve their existing level. Now more than 14 million people around the world use it. Each new "student" can be tested and choose the level they need, get a set of exercises and training materials for its development. The application allows you to train understanding of not only written speech, but also its listening comprehension. Educational materials are provided in both audio and video formats.
This is an educational platform with game elements that gives you the opportunity to learn linguistic skills from native speakers.
The animated lion mascot gave the service its name - Leo. The idea to use this particular character, lost in the jungle of knowledge, came to the developers on the exotic island of Koh Chang, where the founder and a team of programmers worked on creating a new service for about six months. Five years later, the founder, Ainur Abdulnasyrov, entered the first hundred Russian millionaires.
Google listed LinguaLeo as one of the best Android apps in 2015.
LinguaLeo - learning English can be fundoctor at work
The virtual community of professional doctors is a startup by Andrey Perfiliev and Stanislav Sazhin, which appeared in 2009. They created a space that most of all resembles a closed club, within which people of the same specialty can exchange experiences, get the necessary information, ask colleagues questions, and find work.
Gradually, with the growth of popularity, the network expanded significantly. Now both medical students and pharmacists can use it. They, like doctors, got the opportunity not only to communicate, but also to improve their skills free of charge.
Half of all medical workers in Russia, with higher education, are its registered users. In terms of participants' activity, "Doctor at Work" ranks first in the world. For several years in a row, the project has taken more and more honorable places in the rating of the best startups in Russia - Russian Startup Rating.
![](https://i1.wp.com/ardma.ru/images/startap/doktor-na-rabote.jpg)
![](https://i1.wp.com/ardma.ru/images/startap/moneyman.jpg)
Who hasn't dreamed of a flash drive with unlimited storage? Alexey Churkin, the founder of the Flashsafe startup, was able to solve this problem. It was he who came up with the idea of a "dimensionless" drive - a flash card connected to a cloud file storage system. Through special electronic devices, information is placed in storage and is there absolutely anonymously, without being tied to a specific user. This makes it possible to obtain the necessary files without the mandatory use of passwords or keys. Such a device cannot be hacked, it guarantees complete security and confidentiality of information.
Alexey raised it with his own funds and grants, successfully presented his project in Skolkovo, after which pre-orders were collected for 1.5 million rubles. Gradually, investors were found, the project repeatedly appeared on crowdfunding platforms. On August 30, 2016, sales of the "infinite" drive started.
![](https://i2.wp.com/ardma.ru/images/startap/flashsafe.jpg)
The fastest startup, which became the best startup project in just a few days, is one of the best startups of 2016 in Russia. The creators were forced to artificially restrain the powerful growth of the project's popularity. - a mobile application that appeared recently, in the summer of 2016, and allows the user to turn any photo into an image made in the style of famous artists. From an ordinary frame, it became possible to make a work of art in just a couple of seconds and clicks. Its success was simply dizzying. In 10 days, the new photo editor has become the most downloaded product.
Investors valued the entire project at over $10 million. The founder of the service, Aleksey Moiseenkov, has become no less popular than his offspring and tries "not to give more than one interview a day." In them, he says that it took about two months to work on a mega-popular application and investments were made "within the framework of salaries." Mail.ru has already become an investor in Prisma, which makes it possible to evaluate the success and prospects of the project.
![](https://i2.wp.com/ardma.ru/images/startap/prisma.jpg)
MULTICUBIK
A Russian project that won the Startup Village competition in the summer of 2016. The startup ran a successful crowdfunding campaign on the Indiegogo site, successfully presented itself at the TechCrunch Disrupt conference in New York in 2016. Mikhail Bukhovtsev is the founder and CEO of Multikubik.
The project is an interesting technical novelty for the smallest users. We are talking about mini-projectors in the form of a cube, with cartoons and filmstrips inside. You can project an image onto any flat surface. The creators assure that this is a more "healthy" alternative to watching entertainment content on a tablet for a child, the best option for quality family leisure.
Member of the Skolkovo and API Moscow sites. More than $105,000 was raised to launch the sale. Currently, the company's management is planning to develop a premium version of the projector, a more budget version will be put into production very soon.
![](https://i1.wp.com/ardma.ru/images/startap/multikubik.jpg)
This is a list. Some of them are already known abroad, they have found investors there and are planning to enter the international market. What can be said about the current situation in this area on a global scale? What are the best startups in the world?
Top 10 Startups in the World
The best startup projects around the world include:
Slack
A popular corporate messenger that appeared in 2013. Provides very great opportunities for online teamwork, it is especially suitable for small and medium-sized companies. Slack makes formal email correspondence between employees and complex internal workflow unnecessary. This service was ideal for communication between employees at work, but it also allowed the creation of communities of interest, business or leisure. That is why another opportunity to use Slack is to find the right specialists, this is actively used by personnel workers.
The fastest business application in history, now valued at nearly $3 billion.
The application was created by a graduate of the Faculty of Philosophy of Cambridge Stuart Butterfield. Over seven rounds of investments, his startup was able to raise about $350 million and become one of the best such projects in the world. It is especially popular in the USA and European countries. On the very first day of testing, more than 8 thousand organizations registered in the Slack system.
![](https://i2.wp.com/ardma.ru/images/startap/slack.jpg)
Uber
One of the most famous and scandalous startups in the world, which outraged competitors regularly try to catch up with and desperately try to somehow cope with its expansion. At the same time, the project is very successful, it is estimated by investors at $64 billion.
The idea of linking a taxi order to a mobile application turned out to be just golden. It belongs to Travis Kalanick and Garrett Camp. The idea came from one of the founders in Paris, when he could not get himself a taxi.
Launched in 2009, Uber brought huge profits to its creators. Leading venture financiers of the world fought for the right to invest in the service. This is understandable, because the company's daily revenue is now several million.
Now mobile taxis under this brand operate in more than 80 cities around the world, the number of trips using Uber in America has grown by 250%. The company continues to actively explore the global market and expand.
![](https://i1.wp.com/ardma.ru/images/startap/uber.jpg)
Zenefits was founded in 2013 by entrepreneur Parker Conrad, who until recently served as its CEO. In a year, the project has gone from an unknown startup to a dynamically developing business. It took him less than two years to become a company with a capitalization of more than $1 billion. Zenefits boasts some of Silicon Valley's biggest investors (like Andreessen Horowitz) and is valued at $4.5 billion.
The project offers innovative software for the personnel departments of enterprises, which significantly facilitates personnel management and document management in companies. The service allows you to automatically calculate salaries for employees, calculate benefits, bonuses, labor productivity ratios, and determine vacation dates.
In February 2016, Zenefits changed its director to David Sacks, who took emergency measures to maintain the high appreciation of the project by investors. Despite the fact that now the company is experiencing some difficulties, the number of its customers still totals 20,000 people.
![](https://i0.wp.com/ardma.ru/images/startap/zenefits.jpg)
Porch
One of the best startups in the world, which appeared in Seattle in 2013. The project was created to connect professionals who can do home or appliance repair work and people who need their services. A user-friendly interface and ordering system allows you to find the right specialist very quickly, which was immediately appreciated by numerous Porch users. During its existence, the company managed to raise $99 million in 3 funding rounds.
Porches are:
- 3 million professionals with experience and references
- 140 million deals
- over $100 million in venture capital
The company gives a $1000 guarantee to all clients if the quality of the work performed does not suit the customer.
The founders of Porch say that their business continues to grow and develop, has excellent prospects and big plans for the future.
![](https://i2.wp.com/ardma.ru/images/startap/porch.jpg)
A new type of social internet service founded by Ben Silberman in 2008. With it, each user can create their own unique virtual "boards" on which he collects and stores images grouped by various topics. Very quickly, Pinterest has grown into a worldwide directory of ideas and inspiration for a very large global audience of creatives and everyday users. The project is especially popular with women. For example, brides looking for wedding style or young mothers organizing photo shoots for their babies. Of course, it was appreciated by all experts in the artistic field.
It took the startup less than a year to reach its first 10,000 users. Zilberman says that he personally compiled and sent letters of invitation to the first 5 thousand. This figure now represents 70 million per month in the US and 150 million worldwide. The project, to date, has overtaken Twitter in terms of audience size. Financially, it is also very prosperous; since its inception, it has attracted $1.3 billion in investments.
![](https://i0.wp.com/ardma.ru/images/startap/pinterest.jpg)
An extremely successful online service offering mattresses and other sleep accessories. A practical and serious approach even to the most ordinary household items, it turns out, is able to bring the creators both money and fame. The manufacturer and seller of unusual sleep accessories was able to attract the attention of buyers and investors, the latter estimate the project at $550 million.
The authors of this startup approached the matter with a scientific approach and organized a real laboratory in which they empirically established the parameters and characteristics of an ideal mattress. Now they sell one and only kind of it, but in different sizes.
Pleasant bonuses that successfully complement the high quality of Casper:
- Fast shipping
- compact packaging
- the possibility of testing and returning goods
At the same time, the cost of a standard-size mattress starts at $ 500, but the company gives a 10-year warranty on it. The project successfully withstands competition, although the price of their goods is about twice as high as the average.
![](https://i0.wp.com/ardma.ru/images/startap/casper.jpg)
It turns out that startups exist in the field of space technology. One of the most successful projects in this area belongs to Tesla CEO Elon Musk, who decided to create the first private transport company for space cargo transportation. In particular, the creator saw the immediate goal of delivering cargo to Mars during its colonization. The project was successful and now the company is a real space concern.
The first steps in the implementation of this grandiose plan were made in 2002, and after 8 years SpaceX became the first private company to launch a spacecraft. In 2012, one of his unmanned rockets docked with the International Space Station. After that, management signed a contract with the US Air Force and NASA.
SpaceX is considered the most progressive and promising space carrier, while offering one of the lowest prices in the market for such services.
![](https://i2.wp.com/ardma.ru/images/startap/spacex.jpg)
The third most valuable startup in the world is a mobile application that allows you to send messages with attached photos and videos. Created by Evan Spiegel, Bobby Murphy and Frank Brown.
According to statistics, 200 million users of the application send 700 million messages daily. In general, during its existence, the company has raised more than $1 billion and continues to develop rapidly.
The head of the company, Evan Spiegel, is trying to make Snapchat a competitor to Facebook and Twitter. Most likely, he will succeed. An ambitious entrepreneur from the “golden youth” is confidently moving forward. The content of the application continues to be updated and improved, gradually supplemented with new features.
Rapid growth, thoughtful bold marketing and an audience under 30 are the keys to Snapchat's success, which allowed the company to become the third largest startup in the world by capitalization.
![](https://i2.wp.com/ardma.ru/images/startap/snapchat.jpg)
Jibo
The creators of the first family robot, led by MIT professor Cynthia Breazeale, raised money for it using a crowdfunding platform. The project was so successful that in just a few days about 900 thousand dollars were received, although 100 were required.
Now you can buy an electronic friend for all family members and get from him not only practical help in the form of the necessary information, but also a couple of funny stories or anecdotes.
Jibo recognizes people and finds its own approach to everyone. He does not know how to move, but he knows how to speak and show emotions. The first samples are already on sale. The creators of Jibo do not stop there, the design of the robot has already been improved with the investments that the project was able to attract.
![](https://i1.wp.com/ardma.ru/images/startap/jibo.jpg)
One of the fastest growing Internet startups of 2015, based in San Francisco.
The project was created as an Internet service for the delivery of food to private customers from nearby stores. The buyer selects all the necessary goods online from the lists of local supermarkets uploaded to the site, and receives his order by courier very quickly, within an hour.
Instacart is already available in several major US cities and continues to take over the market, with revenues up 15x. Startup development is booming, funds and private investors are confident in the success of Instacart, although competition is growing noticeably every year. The project attracts more and more hundreds of millions of dollars of investments with enviable constancy (see Investments in startups: attraction, rules, important points). The total funding for the service over two years is about $150 million. Investors in the successful startup include Sequoia, Khosla Ventures, Canaan Partners, Horowitz and many more.
![](https://i1.wp.com/ardma.ru/images/startap/instacart.jpg)
A variety of projects are among the best startups in Russia and around the world. Some of them are created by one enthusiast, while several thousand different specialists are working on the development of others. Sometimes it takes a month or two from an idea to a finished product, and sometimes it takes years. Each project has its own secret of popularity and its own fascinating take-off story.
Everyone knows that you can organize your own business. For example, build a hotel on the seashore. Also, everyone knows approximately what needs to be done for this: to acquire a piece of land, draw up a package of documents, create a project, calculate an estimate, start and finish construction, find trained personnel, do not skimp on advertising, and then somewhere in five to ten years, with a successful In the course of business, the invested capital will pay off, and the business will begin to generate income.
This is a classic version of the foundation and development of a business, which requires considerable financial investments, but there is another one: the creators of the famous computer game Angree Birds in a few years they earned almost 56 million euros with an investment of 100 thousand. Or Facebook, the approximate cost of which is 100 billion dollars. United States, and this with a relatively minimal investment.
Many such examples can be cited - these are projects VKontakte, Odnoklassniki and the well-known Google. All of them are similar in that they went through a fast path of successful development, were based on the innovative ideas of their creators and did not require a large start-up capital. These are startups. Projects, ideas, IT-technologies. They cannot be touched, but they can bring billions to their creators.
Important Definitions
A startup (start-up - English) is a company that has just been created and started its activities, usually with limited financial capabilities and a small number of people working in it. Its activities are not necessarily based on IT technologies, as many people mistakenly believe, but on any innovative ideas related to medicine, nanotechnology, the Internet, or any other field. A startup is a firm, organization, any other legal entity. It is extremely incorrect to call this term any Internet service, successful site or project.
A startupper is a person who created a startup and is an employee of the company.
Startup development is impossible without attracting investors. It could be:
- Venture fund- a company that invests in innovative, risky projects that, according to research, can bring good returns later.
- Business angels- individuals who are ready to finance a startup at the development stage and expect to receive long-term interest from profits in the future.
The main distinguishing feature of a startup is its youth. After a few months of work, the company either becomes a fairly successful business, or ceases to exist. The key point is the desire to find and offer a completely new solution to a problem, an unknown service or product. Therefore, first of all, it is creativity and innovation.
And novelty, in turn, is inextricably linked with suspense and uncertainty, as the company has to do everything from scratch. This includes determining the pricing policy, and payment methods, and studying the audience that is interested in their product, and planning a future development strategy, and much more. It is from this that such a feature of a startup as the search for a behavior model in the market follows.
History of occurrence
The English term “start-up” in its current meaning was born in the USA, near San Francisco, in Silicon Valley in 1939. This is the place where almost all companies that were engaged in the development of information technology were gathered. In principle, the success of the valley is inextricably linked with the emergence of the first start-up - when two Stanford graduates William Hewlett and David Packard founded an enterprise that later became the world-famous giant Hewlett-Packard.
Other classic examples of successful startups are:
- Microsoft was founded in 1975 by Bill Gates and Paul Allen.
- Founded in 1976 by Steve Jobs, Steve Wozniak and Ron Wayne, who joined a little later, Apple Computer inc.
- Google was founded in 1998 by Larry Page and Sergey Brin.
Very often in recent years, startups are mistakenly called any well-known company, Internet project or website that is somewhat different from others. For example, among the popular networks Facebook, Odnoklassniki.ru, VKontakte, only the first one is a real startup, and the rest are its successful clones, which are popular mainly in Runet.
Specifics of work in Russia
The young startup market in Russia is now in a stage of rapid growth and development. But it is precisely because of his youth that he experiences great difficulties. Over the fifty years of the existence of this sector in the West, a certain innovative culture, innovation support mechanisms, and investment forms have managed to develop there. There are thousands of venture capital firms and business angels, private investors, and, accordingly, thousands of opportunities for startups. In Russia, this is not yet the case, so it is extremely difficult to find sources of funding. Another distinguishing feature of the Russian company is the time that the company can spend in this stage.
In the classical version, which operates in the West, it is given a time of 6-8 months, after which, if the idea fails, the company dies so as not to waste time and money. In our country, this stage can last for years, which is a mistake.
The fate of the Russian startup, its further existence or development due to the low interest of our large companies in such projects also remains uncertain. Western giants constantly monitor the teams that have appeared in them and buy the most promising ones. We do not have such a practice. That is why foreign investors are increasingly turning their attention to the Russian market.
Creation of a startup
Nowadays, anyone who would like to try himself in this field can found a startup. The easiest way, of course, is to do this in the IT field. Today, having a laptop, a bright head with ideas and a desire to create something unusual can be enough for the first steps in this field.
To facilitate the task, you can follow theses:
- Define the problem you are going to solve. For reliability, it is better to take a real sphere and real consumers who have difficulty in something. You can find out by talking with clients, listening, reading reviews, comments, and making sure that this is a really sore subject, you can try to find ways to solve it and implement the project. The ideal option would be to sign a letter of guarantee with the client who voiced the problem, about his willingness to further cooperate with you and use your product in case of a successful solution to the problem.
- Do not rush to optimize the product, bring it to an ideal state. Your task is to create a trial version as soon as possible and give it to friends, acquaintances, customers for testing. And based on their comments, already refine it, release the next and subsequent versions.
- Don't delay your first sale. It is not worth sitting over the interface for years without trying to implement what is already there. A startup is a business, and business is accelerated. Here you need to understand as soon as possible whether it will be successful, and for this you need sales. And if a raw product is purchased from you, this will be a signal that you are on the right track.
- Don't waste money, especially money you haven't earned yet. If you have invested your own funds in a startup, are at the beginning of the journey, have not yet received a single payment for the product, save on everything - the office, employees, business cards and other things that you can do without.
- Devote as much time to the project as possible. The success of an enterprise is almost 100% dependent on how much work and time is invested in it. If you work on a project for an hour a day, the result is likely to be mediocre.
- Do not rush to look for outside investors. At the initial stage, it is better to manage on your own, attract friends, relatives. In order to create a trial model, not so much money is needed. If the prototype is successful, things have gone well and need to be developed, then you can think about raising additional capital. In addition, it is much easier and more profitable to do this with a ready-made positive result.
- Don't put off ideas for tomorrow. If you are sure of something, do the project immediately. No need to slow down on the search for a team, discussions and other things. Just start. Everything else will catch up in the process. A startup is a matter of the young, impulsive, hot. The older a person becomes, the less he is subject to impulses and belief that at first glance a crazy idea can be successfully implemented.
- Don't be discouraged if you fail. Before giving up on a startup, make sure you've done your best. Or is it enough to tweak a failed product a little to make it sellable?
How to start developing your project - in the video:
The process of turning a startup into a successful enterprise consists of several stages.
Stages of development
- Origin. This stage is characterized by the presence of an idea and sometimes a test sample of the product. There are initiators of the creation of the company, but the process of founding a business has not yet begun.
- Formation. At this stage, the company has already been created, the product has been launched, but it is still raw, not finalized and does not yet generate income. A management team is formed, the documentation of the enterprise is put in order.
- Early development. Gaining momentum, the company gains its first popularity and takes its place in the market, the first profit appears.
- Extension. At this stage, product sales increase, the company reaches a stable profit, it has well consolidated its position in the market and is able to start the development of related projects.
- Maturity. The last stage, at which the company, as a rule, occupies a leading position in its industry and a fairly large share of the market segment, it is highly profitable, all processes have been worked out, and highly qualified specialists work in it. In this position, the company usually starts issuing shares or can be sold to a suitable investor.
Investors and fundraising
In order for the undertaking to be successful, in addition to the idea, a good source of investment is needed. Or several. A startup cannot survive without funding. Ideally, at each stage of development, it should move to a higher level of funding. Sources can be:
- Personal savings.
- Means of friends and family members.
- Crowdfunding. A startupper can make a presentation of his offspring in the Internet environment and ask for money for development. For depositing a certain amount, they usually promise a prize. This type of investment is poorly developed in Russia, and searching on foreign sites is difficult because you need an account in a foreign bank to withdraw funds.
- Credit. Unlike Western countries, where there are programs for concessional lending to start-ups, in Russia, this business can be issued a consumer loan or a small business development loan. A high percentage scares off novice businessmen, making the project deeply unprofitable in the early stages of development.
- A business angel is an investor that every startupper dreams of. For people who have the gift of persuasion and believe in the success of their project, finding such investors is quite feasible even in Russia, where their number is increasing every year.
- State. The budget of any country includes funds for the development of innovative business. If you manage to meet the stringent requirements, you can get stable financial assistance at a low percentage.
- Venture funds. It is quite difficult to get such investments. In order to convince people who have tremendous practical experience in such matters, it is necessary to have a really bright and profitable undertaking.
Decision making also takes quite a long time. Each source of funding has its own nuances and problems, but faith in your work and perseverance in work will help overcome these difficulties.
Business accelerators and incubators
Important elements in the startup system are incubators and accelerators. Their field of activity is the development of companies at the initial stage, turning them into a profitable business. They work simultaneously with a large number of projects, thereby minimizing their risks.
- Incubator– specializes in business development at the idea stage. This, as a rule, is the first structure where a startup can turn after family and friends. The incubator's arsenal includes training programs for project development, theoretical and practical trainings that help to apply the acquired knowledge in practice.
- Accelerator- works with a ready-made company that has its own team and developments, requiring serious investments. The essence of the program is about the same, but at a deeper level, related to the analysis of investment activities and communication with future investors.
If a startup lacks a team or a place to develop an idea, you should contact the incubator. If a company has been established, but needs professional advice on how to take it to a big business, it is an accelerator.
The main activity of the incubator is consulting, so any startup that can pay for services can become its client. In order to become a client of the accelerator, you must pass the selection process. Experts with extensive experience are involved in their work, as well as additional financial resources are attracted. The task of the accelerator is to fashion an investment-attractive product out of a startup in a short period of time. Very often, large accelerators cooperate with venture funds, which can subsequently finance such a company. To become their client, the proposed project must show good promise of success.
Examples of successful projects
There are many companies that have made their projects successful and extremely profitable in a short time. These include:
- Wikipedia- the most extensive online encyclopedia, where the number of articles is increasing every day.
- YouTube- the largest database of video products.
- Of the startups that have become famous in recent years, one can name a manufacturer of gadgets from China - Xiaomi. By setting minimum prices for devices while providing them with decent quality, the company sold 18.7 million units of smartphones last year, and it has other high-demand electronics in its arsenal. The market value of the company is 10 billion dollars. United States with an investment of $507 million
- As a vivid example of a successful startup in the Russian market, we can cite the company "Enter", founded by Maxim Nogotkov. The basis of her activity was the idea of creating a project that includes real and online stores. The company includes more than a hundred points of sale, operates in 40 Russian cities, you can order goods through the website, a special application on your cell phone, landline phone or directly in the store. To date, the range of goods includes more than 35 thousand items.
Startup
Startup or startup company(from English. start-up- run) - a company with a short history of operations. As a rule, such companies were created recently, are in the stage of development or research of promising markets. Term startup became popular during the dot-com bubble, when a large number of Internet companies were created. New projects in high-tech industries are often referred to as high-tech startup. Term startup applies to all sectors of the economy. Using the example of the field of information technology and Internet projects, in IT, startups are called new companies that are just emerging or planned to be created. IT startups are not tied to aggressive marketing and PR methods aimed at quickly promoting the company. IT startups can be created for a long time and with a long time to market (for example, creating a product for two years and only after that entering the market and promoting).
Stages of startup development
The abbreviated classification of startup development stages is most often mentioned, according to which a startup goes through 5 stages in its development: the seed stage ( seed stage), launch stage ( startup stage), growth stage ( growth stage), expansion stage ( expansion stage) and the exit stage ( exit stage).
Sometimes a more extended classification of startup development stages is used:
Initial stage of a startup
- Pre-seed stage
- Sowing stage (seed stage)
- Prototype
- Working prototype
- Alpha version of a project or product (alpha)
- Closed beta version of a project or product (private beta)
- Public beta version of a project or product (public beta)
- Launch, or early startup stage (launch, or early startup stage)
- Startup stage (startup stage)
- Working with first clients, or late startup stage (first clients, or late startup stage)
Post-startup stage
- Growth stage
- expansion stage
- exit stage
- Pre-IPO stage (when exiting through an IPO (Initial Public Offering), or the company's initial placement of its shares on the stock exchange)
- IPO (when entering the IPO)
For example, the pre-seed or seed stage in Y Combinator is:
How much money is invested?
$11,000 + $3,000 for a founder $17,000 for two founders, $20,000 for three or more. Usually invest more. The main goal is to give enough money to release an impressive prototype or version 1, which will attract the next investment.
What does Y Combinator get for this?
Shares in a startup in the amount of 2-10%. Usually 6 or 7%."
Startup Support Infrastructure in Russia
Fund for Assistance to the Development of Small Forms of Enterprises in the Scientific and Technical Sphere
- UMNIK program - financing of projects up to 400 thousand rubles.
- program "Start" - financing of projects up to 3 million rubles.
- industry programs (Soft, Pharma, Energy, Stavka, etc.) - financing of projects up to 15 million rubles.
The application includes a business plan for the project. Business plan form available in the software BP-Start.com.
Often the ideas for successful startups come up by chance. For example, Lotus started off with Mitch Kapor just writing a program for a friend of his. Steve Wozniak, working for Hewlett-Packard, wanted to create computers, but the employer did not let him realize his ideas. This is how Apple was born. And David Filo, who collected links, did not even think that his passion would one day result in a project called Yahoo! ".
Sources
Wikimedia Foundation. 2010 .
Synonyms:See what "Startup" is in other dictionaries:
Exist., number of synonyms: 2 company (88) beginner (22) ASIS synonym dictionary. V.N. Trishin. 2013 ... Synonym dictionary
A young fast growing company. Dictionary of business terms. Akademik.ru. 2001 ... Glossary of business terms
startup
startup- Newcomer company...
startup- Newcomer company... Dictionary of foreign words edited by I. Mostitsky
startup company- (from English start up) 1. economy. start-up company a newly created company, most often an Internet company, dealing with high technologies, the Internet and nanotechnology The management company Skolkovo Foundation has promised to give out more than 36 to start-ups ... ... Universal additional practical explanatory dictionary by I. Mostitsky
startup firm- (from English start up) 1. economy. start-up company a newly created company, most often an Internet company, dealing with high technologies, the Internet and nanotechnology The management company Skolkovo Foundation has promised to give out more than 36 to start-ups ... ... Universal additional practical explanatory dictionary by I. Mostitsky
This article is proposed for deletion. An explanation of the reasons and the corresponding discussion can be found on the Wikipedia page: To be deleted / October 8, 2012. While the discussion process is ... Wikipedia
What is a startup, who is a startup, spheres and tips for opening a Startup, stages of development of a startup. Everything is told in simple terms.
Greetings, dear readers. Over the past few years, many have heard the word startup. Some immediately turned to the search engine and went to the Wikipedia article, where the corresponding definition was published, while others had enough context in which they heard this term.
In fact, both the former and the latter have the correct idea of what a startup is. However, if, suddenly, the meaning of this word is still completely unclear to you, then let's analyze it in detail.
In essence, StartUp is the opening of a new business, which its initiator considers potentially successful. However, such a business may not be, but at the same time it will not cease to be a startup, albeit a failure. But, without which a startup cannot be considered a startup, it is without a short period of achieving its goals.
To make it clear, you need to give specific examples. The most famous and successful startup is Facebook. Mark Zuckerberg had an idea that he brought to life in a few months. Another example is BeatsAudio headphones. They appeared in the wake of the high popularity of rap, in which the beat consists mainly of low-frequency sounds. The corresponding idea quickly attracted the attention of investors, and soon Beats Electronics received huge injections into their business. The money received was immediately put into action (in particular, in marketing), and now almost everyone knows about the Bits.
At the same time, companies such as Gazprom or General Electromotive are not start-ups, as they have been developing for a very long time. And besides, their founders had some capital at the start, while most startups raise money from investors.
In short, Start-Up is a business that becomes famous soon after launch and attracts investments just as quickly.
Startup areas
Having dealt with the question: what is a startup, we can consider the areas in which opening a business can be considered the launch of a start-up.
It is widely believed that StartUp is something from the IT field. It has developed due to the fact that it is various world-famous services that are often called Startups (Evernote, Pinterest, yes the same). However, this is absolutely not the case. A startup can be a business in almost any area, the main thing is that it quickly finds investors.
A startup idea might be in the area of:
It practically does not matter what exactly the company will do, the main thing is that it quickly receives money from investors. In this case, its owner can be considered a startup.
The main stages of startup development
Startup development can be divided into 5 stages.
- The first is the sowing (eng. Pre-Seed), which is characterized by market research, the search for ideas and methods for their implementation, the creation of a business plan, etc. Also at this stage, investors are looking for
- If investments have been found, then a start is made (Eng. Startup). At this stage, the created product must demonstrate its viability in the market.
- If the product has successfully passed the second stage, then growth (Growth) begins. This stage lasts until the entire niche that the startup focuses on is captured.
- The fourth stage is expansion. After going through all the previous stages, the company should already have enough money to implement new ideas that have already appeared in the process of project implementation.
- The fifth stage is exit. When the project reaches notable heights, investors sell their shares to large players in the respective market (for example, it was the case with Instagram or WhatsApp - they were sold to Facebook).
Although the fifth stage may remain unrealized, if it is clearly seen that the company is able to bring profit for a very long time and stably.
Who is a startup
Having dealt with what Startup is, you can consider the question of what a startup is. Simply put: this is a person who has a potentially successful idea and strives to implement it. He does not have to be enterprising (a businessman), because if the idea is really worthwhile, then hired managers will subsequently be able to deal with business issues.However, many startups create projects on their own and manage them up to a certain point.
There is a vivid image of a startup in the mass consciousness. His portrait is usually drawn as follows: a young, ambitious and purposeful person who works not for financial profit, but for the realization of an idea that he has, self-realization, or just for fun.
These are presented by the media and cinema of successful startups. However, of course, a person launching such a business is not at all obliged to correspond to this portrait.
Many startups close after a few months. Therefore, when thinking about launching it, it is necessary to soberly assess the situation and understand whether the idea is really as good as it seems.
If so, then she needs to devote all her time. This is a business, and he will need to give himself up. Therefore, most likely, it will not work out when you come home tired after a hard work to do your project. No, something will come out, but it will be a completely different level, and after some time, someone who has more time will simply steal the idea and implement it more successfully.
Those who are interested in the question: how to create a startup should know that when creating such a company, one should first of all think not about money, but about the benefits that it will bring to people. At the same time, even when it starts to become popular, you should not immediately squeeze the maximum out of it. Let the product be provided for free or cheap at first, but more people will learn about it. In the meantime, the profit does not go, you can focus on finding investors.
Instead of total
In today's world, for quite a few people, a successful startup is the shortest way to take the leap to where the big money and perhaps some fame awaits. For others, it, in turn, can simply become a source of good almost passive income. It all depends on the quality of the idea, its features and, of course, implementation. Dare!
Sincerely, Stein David.