- Young company is looking for a business man and a business man. Start-ups usually address a young or not yet existing market and must therefore first find a scalable, repeatable, profitable business model. This means that it is not a start-up company or a start-up company.
Business Model (Business Model)
- Describes the logic according to which a company works. The most important components are (1) the value proposition, which is the value created for customers, (2) the revenue model, how and what revenues a company Generate
- The business plan is a written company concept. It describes the business model, the business model as well as all the measures that the founders plan to implement the start-up project.
Risk and failure
- Start-ups are exposed to multiple risks. Due to the high degree of innovation at the time of the foundation, it is not clear whether the product can be developed. As a result, the success rate of start-ups is rather low: from ten, on average of seven to eight, one or two fail, but without reaching the expected growth, and only one is sustainably successful. The three main reasons for the failure are: (1) (1) (1)
- The term incubator (incubator) originally comes from medicine. (Business) incubators meet a similar function for start-ups. They provide the necessary infrastructure (office, laboratory) in the (pre) start-up phase at a favorable price, provide advice and coaching as well as management training and help as an intermediary in the capital search. Particularly valuable for start-ups, the network contacts can be both within the incubator (eg exchange of experiences with other founders) ).
- An accelerator helps start-ups through coaching to develop faster. The objectives and activities of an accelerator are very similar in many respects to those of an incubator. The most important differences are the "Accelerator" programs are usually organized as a "bootcamp" for start-ups and are limited to a short period (usually a few months).
- In their early development, start-ups are mostly dependent on external financing and go through successive financing phases with ever higher amounts. The first funding comes from the founders ("Bootstrapping") and later from the Families and Families (FFF: Family, Friends, and Fools) as well as from public subsidies. The first formal funding round is, as far as the seed round, in which private entrepreneurs (business angels) usually participate in the start-up. The further growth is financed by affiliated companies (à venture capital). The participation in a start-up is associated with high-risk, which can lead to the total loss of the capital employed. At the same time, however, very high returns are possible with a success.
- Crowdfunding is a relatively new form of finance. The shareholders can already participate in the event of a business success. In the case of equity-based equity, the crowd invests in the company and is involved in profit / loss or development of the company's value.
- Business angels are wealthy private investors, often even successful entrepreneurs or top managers. They are already involved in a very early phase. The amount of the investment is between EUR 50,000 and EUR 250,000 in the first round of investments. In addition to this, the entrepreneur is the only one who has the right to do so.
Venture capital (risk capital)
- Capital provided by an investment company to participate in start-ups. The objective of the equity investment is not dividends or interest payments, but the profit from the sale of the investment (à exit). VC companies are usually specialized in certain industries and usually. Their engagement is usually limited to a specific development phase (eg Early Stage, Expansion Stage).
- Phantomacties are a modern form of employee participation. Employees are paid with imaginary securities depending on the performance. They do not receive real, but only fictitious shares. In this way, non-listed companies can also use this form of remuneration.
- Start-up jargon for large companies and corporations.
- Includes the early start-up phase, starting from the (ideas) development, research and product conception, the establishment of the company and the commencement of business operations. Financing from sales is only possible to a limited extent in these phases.
- Exit means the founders (or investors / investors) sell their company shares and get out of the company as partners.
- Acronym for "Family, Friends, and Fools", which are often the first external donors for start-ups.
- Lean start-up describes a relatively young approach to the company's founding. Key elements are short product development cycles and the early retrieving of customer feedback. The feedback flows into the further product development. This iterative approach between product and market development is designed to prevent products being developed by the market.
- A pitch is a letter and concise presentation of a business idea (usually in front of an investor). The term "Elevator Pitch" comes from the fact that founders should be able to convincingly communicate their business ideas at any time, even in the short time of an elevator ride.
- A Pivot is a fundamental change in the business model (eg new customer segments, sales channels, price models). After the start of the year, the company will be the first company in the world.
- Signs the first significant financing round with à venture capital.
- One of the most important locations for IT and high-tech companies and the parade example for a successful start-up ecosystem worldwide. Companies like Apple, Google, Facebook or Tesla emerged from the Valley of San Francisco. Currently, there are between 14,000 and 19,000 start-ups as well as more than 10,000 business angels in Silicon Valley.
- Scalability describes the growth capability of a company.
- Identifies the organization of an organization (eg university or company).
- Unicorns (unicorns) are unicorns. At the end of January 2016, there are 152 Unicorns worldwide, which is currently highest-rated start-up "Uber" ($ 51 billion).