Definition: A Startup in India is an entrepreneurial venture which is typically a newly formed business with particular momentum behind it, based on perceived demand for its product or service.
What is a Startup in India?
A Startup is a young company beginning to develop. Startups are usually small and initially financed and operated by a handful of founders or one individual.
Startup in India have a high rate of failure. Therefore, only a few companies could make to that high level and become a large and influential. The size and maturity of startup is based on the place where it is launched and grow. This have an effect on the volume and success of the startups.
Funding for Startups In India:
Startups have several options for funding. ‘Venture Capital’ firms and ‘Angel Investors’ may help startup companies begin operations, exchanging ‘seed money’ for an equity stake in the firm.
Venture Capitalist and Angel Investors provide funding to a range of startups. Having an expectation of how they are performing at present and what would be the future prospect of the startup. Other funding opportunities include various forms of ‘Crowdfunding’, in which the startup seeks funding from a large number of individuals. Typically just by pitching an idea on the Internet or in front of some reputed companies.
Many startups work as an “Incubators”. Where work space and financial support is provided by Non-Profit or Government Organizations. Where as there are many other institutions which take responsibility to help them grow the business. As well as Startups can also choose to stay private. By using their accumulated profits to reinvest in the enterprise and to provide pay to the founders and employees. An IPO gives you a way of raising cash quickly. The other option is to sell your company to a competitor, or perhaps a private equity firm, to take it to the next stage of its journey.
A startup is a registered business entity. So, the unregistered entity is just a work in progress or simply an idea. A startup has an organizational structure no matter how horizontal it may be. It can have employees on payrolls and have shares divided among shareholders.