A startup company or startup is an enterprise or new business started as a company, partnership or temporary organization in search of a repeatable and scalable business model. India has emerged as a ‘hotspot‘ for startups. In 2021 alone, Indian startups have raised over $23 billion, have engaged in over 1,000 deals and 33 Indian startups have entered the prestigious ‘Unicorn Club’. So far in the year 2022, 13 more startups have joined the Unicorn Club. So, Introduction Startup India is a flagship initiative of the Government of India, which aims to create a strong ecosystem for startups and innovative ideas in the country, which will lead to economic development of the country and generate employment opportunities on a large scale. A startup company or startup is called an organization that is designed to achieve a large scalable and repeatable business model.
What is the startup company meaning in India?
Startup Company is basically very different from traditional business, that’s why I have mentioned about some important points below which will help you to understand about Startup companies. Whenever we talk about traditional business, then there is less scalability for growth, but startup is different because these companies grow very quickly and in a very short time they capture a huge market in the whole country. If you are selling software in a small market, then you will not be called a startup company. There is always a need for innovation in startups and which have high scalability.
Funding For Business
Funding is required in both Traditional Business and StartUps to run your business. Traditional Business has only one option for money which is Bank’s Loan. At the same time, there are many ways in StartUps for funding such as Angel Investor or Venture Capitalist etc. Those who give you money in exchange for shares or equity, here they do not ask you for any security. Here the investors are looking for high scalability and growth companies which provide them high returns. Therefore, the StartUps in which these investors invest their money, they also provide them mentor-ship to run the business.
Exit strategy in the beginning
If you lose business in Traditional Business, then you can close it and choose another business because the ownership is under you here. Whereas in StartUp, since the funding is done by Angel Investor or Venture Capitalist, in the beginning itself you have Exit Strategy like merge with another company, acquisition by another big company or IPO. Therefore, here the investor can easily sell his shares to other companies or people and exit in exchange for good returns.
Working Culture
Traditional business has a traditional working culture in India, but there is something else about startups, where employees are taken special care of. Here their offices are made attractive with which good perks are also available. Some startup companies also provide shares along with salary to their employees at low prices so that the motivation of the employees is always maintained.
I hope basic fundamental of “What is Startup & condition in India” is clear. Please give your comment about this article and if you have any query then please post.
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