What is a Startup?
A startup is not just a small version of a big company. It is a temporary organization designed to search for a repeatable and scalable business model.
Growth Focused
Startups are designed for fast growth. This is the only essential difference between a startup and any other business.
Problem Solvers
Successful startups solve a specific problem for a specific group of people in a way that is significantly better than existing solutions.
Uncertainty
Startups operate in extreme uncertainty. They are experiments testing hypotheses about what customers want and will pay for.
The Startup Journey
Most startups follow a predictable path known as the "J-Curve". It starts with an initial dip in value (spending money/time) before finding product-market fit and scaling.
- 1Valley of Death: The early stage where you burn cash without revenue. Most startups fail here.
- 2Product-Market Fit: The moment when the market pulls the product out of your hands.
- 3Scale: Pouring fuel on the fire. Rapid growth and expansion.
The Investor Connection
Investors are the fuel for the startup engine. They provide more than just money; they are partners in your success.
Capital
Funding to hire talent, build product, and acquire customers before you are profitable.
Resources
Access to legal frameworks, hiring networks, software credits, and operational support.
Mentorship
Guidance from experienced founders and operators who have "been there, done that."
Funding Rounds Explained
Startups typically raise money in "rounds," each with specific goals and valuation milestones.
Pre-Seed / Seed
Proving the idea works. Usually $500k - $3M raised.
Series A
Proving the business model scales. $10M - $20M raised.
Series B+
Scaling to market dominance. $30M+ raised.
The Hard Truths
Failure Rate
Most startups don't make it past year 5.
To IPO
Average time to go public.
Unicorn Status
Reach $1B+ valuation.
First Year Fail
Fail within the first 12 months.