Description
Learn more about startups, companies, unicorns, business and development.
Study Set Content:
Who was the founder of Fairchild Semiconductor?
William Shockley
How many of Shockley's former employees gave birth to new companies in 20 years?
a mere eight of Shockley’s former employees gave forth 65 new enterprises.
In what year was the spark that set off the boom of Silicon startups?
in 1957
What does startup investing mean?
Startup investing is the action of investing in an early-stage company.
What law made the solicitation of funds for startups easier?
In the United States, the solicitation of funds became easier for startups as a result of the JOBS Act.
What is a form of online investing that has been legalized in several nations?
Before the advent of equity 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 offering (IPO) that typically involved a listing of the startup's securities on a stock exchange.
What are investors most attracted to?
Investors are generally most attracted to those new companies distinguished by their strong co-founding team, a balanced "risk/reward" profile (in which high risk due to the untested, disruptive innovations is balanced out by high potential returns), and "scalability" (the likelihood that a startup can expand its operations by serving more markets or more customers).
Successful startups are typically more scalable than what type of business?
Successful startups are typically more scalable than an established business, in the sense that the startup has the potential to grow rapidly with a limited investment of capital, labor, or land.
Timing has often been the single most important factor for what?
Timing has often been the single most important factor for biggest startup successes, while at the same time it's identified to be one of the hardest things to master by many serial entrepreneurs and investors.
What can revenue-based financing lenders provide to startups?
Revenue-based financing lenders can help startup companies by providing non-dilutive growth capital in exchange for a percentage of monthly revenue.
How do venture capitalists and angel investors help startup companies?
Venture capital firms and angel investors may help startup companies begin operations, exchanging seed money for an equity stake in the firm. Venture capitalists and angel investors provide financing to a range of startups (a portfolio), with the expectation that a very small number of the startups will become viable and make money.
How are many startups initially funded?
many startups are initially funded by the founders themselves using "bootstrapping", in which loans or monetary gifts from friends and family are combined with savings and credit card debt to finance the venture.
How can startups receive funding?
Startups can receive funding via more involved stakeholders, such as startup studios.
How do startup studios support the business?
Startup studios provide funding to support the business through a successful launch, but they also provide extensive operational support, such as HR, finance and accounting, marketing, and product development, to increase the probability of success and propel growth.
What percentage of the value of US public companies is now based on their intellectual property?
The news magazine The Economist estimated that up to 75% of the value of US public companies is now based on their intellectual property (up from 40% in 1980).
How much of a small startup company's value is often based on its intellectual capital?
100% of a small startup company's value is based on its intellectual property. As such, technology-oriented startup companies need to develop a sound strategy for protecting their intellectual capital as early as possible.
What is the first round of a startup called?
The first round is called the seed round.
Who will be the ones participating in the seed round?
angel investors will be the ones participating.
What are the three rounds leading to the IPO?
The seed round, Series A round, and Series B, C, and D rounds.
What is the series A round?
it is the round in which the company already has traction and maybe making revenue. In Series A rounds venture capital firms will be participating alongside angels or super angel investors.
