IES SAN CLEMENTE

A startup is a young company that is just beginning to develop. These companies offer a product or service that is not currently being offered elsewhere on the market, or that the founders believe is being offered in an inferior manner.

In the early stages, startup companies' expenses tend to exceed their revenues as they work on developing, testing and marketing their idea. As such, they often require financing. Startups may be funded by traditional small business loans from banks or credit unions, by government-sponsored Small Business Administration loans from local banks, or by grants from nonprofit organizations and state governments. Incubators can provide startups with both capital and advice, while friends and family may also provide loans or gifts. A startup that can prove its potential may be able to attract venture capital financing in exchange for giving up some control and a percentage of company ownership.

Although the term “startup” may refer to new companies in any field, it is normally used for those that have a strong technology component and are related to the world of the Internet and ICT. Because of these features, technological startups usually differentiate from other young companies in their growth prospects and financial needs.

There are many examples of startups, both internationally and in Spain. Google, Twitter, Facebook, Tuenti and Privalia began as startups and over the years have become corporate giants with hundreds of employees and a significant number of revenues and profits. A common debate associated with startups is when they become companies in their own right.

There is no definitive conclusion regarding this issue. Sometimes it is said that in the advanced stages of a startup, the concept becomes linked to the corporate structure, work methods, and the business environment, rather than the aforementioned characteristics.

The vast majority of startups, however, die within months or years. This is unimpressive if you take into account that in most cases, fewer costs are involved when launching a startup.

Interesting Ted Talk on the main important factors that make a startup be succesfull:  https://www.ted.com/talks/bill_gross_the_single_biggest_reason_why_startups_succeed?language=en