Start Up Companies

Startup Company:

Company with a limited operating history is at her startup stage. Newly established companies are at the research and development stage for markets. Internationally the term becomes popular during the dot-com bubble when large number of dot-com companies came into existence. Startup Company in High tech industry is known as High Tech Startup Company.

Evolution of the startup company:

The phrase startup company is associated with high growth and technology oriented companies. Those newly established companies mostly attract the investors as these companies are distinguished by their risk/reward profile and scalability. Because of this, they have lower bootstrapping costs, higher potential return, and higher risk involvement. Startup businesses have potential of rapid growth with limited investment, that’s why they are more scalable. Conducting research is a critical task in order to validate and develop the business concepts with the addition of opportunities to establish deeper understanding of the business’s commercial potential of growth. Intellectual property Protection is important for the company which is based on its technology. Up to 75% of the value of US public companies is based on their intellectual property, estimated by the newsmagazine the Economist sound strategy should be developed by startup companies which are technology oriented for the protection of their intellectual capital.

The failure rate of these types of companies is very high but the companies associated with new technology, most of the time produces huge returns to their creators and investors and Google is the best example of it. Around the globe, some locations are specific for the startup businesses. Association of internet bubble of the late 1990s and huge number of internet startup companies, selling technology to serve internet access, and other are busy in using the internet to provide services. Mostly startup activity is situated in Silicon Valley,...