These include wanting to keep abreast of current developments in a particular business arena, mentoring another generation of entrepreneurs, and making use of their experience and networks on a less than full-time basis. Because innovations tend to be produced by outsiders and founders in startups, rather than existing organizations, angel investors provide, in addition to funds, feedback, advice and contacts.
angel investorsangel investmentbusiness angel
private-equityequityPrivate equity investor
Because innovations tend to be produced by outsiders and founders in startups, rather than existing organizations, private equity targets startups to create value by overcoming agency costs and better aligning the incentives of corporate managers with those of their shareholders. This means a greater share of firm retained earnings is taken out of the firm to distribute to shareholders than is reinvested in the firm's workforce or equipment. When private equity purchases a very small startup it can behave like venture capital and help the small firm reach a wider market.
Eventually, these founders left to start their own companies based on their own, unique, latest ideas, and then leading employees started their own firms. Over the next 20 years, this snowball process launched the momentous startup-company explosion of information-technology firms. Essentially, Silicon Valley began as 65 new enterprises born out of Shockley's eight former employees. Since then, hubs of innovation have sprung up globally with similar metonyms, including Silicon Alley encompassing New York City.
seed fundingseed roundseed capital
Investors can be the founders themselves, using savings and loans. They can be family members and friends of the founders. Investors can also be outside angel investors, venture capitalists, accredited investors, equity crowdfunding investors or government programs. Seed capital can be distinguished from venture capital in that venture capital investments tend to come from institutional investors, involve significantly more money, are arm's length transactions, and involve much greater complexity in the contracts and corporate structure accompanying the investment.
MITMassachusetts Institute of Technology (MIT)M.I.T.
Analog Devices, 1965, co-founders Ray Stata, (B.S., M.S.) and Matthew Lorber (B.S). BlackRock, 1988, co-founder Bennett Golub, (B.S., M.S., PhD). Bose Corporation, 1964, founder Amar Bose (B.S., PhD). Buzzfeed, 2006, co-founder Jonah Peretti (M.S). Dropbox, 2007, founders Drew Houston (B.S) and Arash Ferdowsi (drop-out). E*Trade, 1982, co-founder William A. Porter (M.B.A). Hewlett-Packard, 1939, co-founder William R. Hewlett (M.S). HuffPost, 2005, co-founder Jonah Peretti (M.S). Intel, 1968, co-founder Robert Noyce (PhD). Koch Industries, 1940, founder Fred C. Koch (B.S). Qualcomm, 1985, co-founders Irwin M. Jacobs (M.S., PhD) and Andrew Viterbi (B.S, M.S).
seed acceleratoracceleratorbusiness accelerator
Y Combinator and TechStars have application acceptance rates between 1% and 3%. 2) A seed investment in the startups is usually made, in exchange for equity. Typically, the investment is between US$20000 and US$50000 (or GB£10000 and GB£50000 in Europe ). 3) The focus is on small teams, not on individual founders. Accelerators consider that one person is insufficient to handle all the work associated with a startup. 4) The startups must "graduate" by a given deadline, typically after 3 months. During this time, they receive intensive mentoring and training, and they are expected to iterate rapidly.
Cash-strapped entrepreneurs get creative in BBC News.
business modelsmodeloperating model
Business Model Discovery by Technology Entrepreneurs. Technology Innovation Management Review, April 2012, pp. 5–16. S. Muegge, C. Haw, and Sir T. Matthews, Business Models for Entrepreneurs and Startups, Best of TIM Review, Book 2, Talent First Network, 2013. Alex Osterwalder et al. Business Model Generation, Co-authored with Yves Pigneur, Alan Smith, and 470 practitioners from 45 countries, self-published, 2009. O. Peterovic and C. Kittl et al., Developing Business Models for eBusiness., International Conference on Electronic Commerce 2001, 2001. Alt, Rainer; Zimmermann, Hans-Dieter: Introduction to Special Section – Business Models.
leveraged buyoutsLBOleveraged finance
Bootstrap funding. Divisional buyout. Envy ratio. History of private equity and venture capital. List of private equity firms. Vulture capitalist. LCD Loan Market Primer: LBOs – What are leveraged loans used for?. Investopedia definition – Leveraged Buyout.
incubatorbusiness incubatorsbusiness incubation
A business incubator is a company that helps new and startup companies to develop by providing services such as management training or office space. The National Business Incubation Association (NBIA) defines business incubators as a catalyst tool for either regional or national economic development. NBIA categorizes their members’ incubators by the following five incubator types: academic institutions; non-profit development corporations; for-profit property development ventures; venture capital firms, and combination of the above. Business incubators differ from research and technology parks in their dedication to startup and early-stage companies.
StanfordLeland Stanford Junior UniversityStanford Cardinal
In February 2015, Elise Clougherty filed a sexual assault and harassment lawsuit against venture capitalist Joe Lonsdale. Lonsdale and Clougherty entered into a relationship in the spring of 2012 when she was a junior and he was her mentor in a Stanford entrepreneurship course. By the spring of 2013 Clougherty had broken off the relationship and filed charges at Stanford that Lonsdale had broken the Stanford policy against consensual relationships between students and faculty and that he had sexually assaulted and harassed her, which resulted in Lonsdale being banned from Stanford for 10 years.
venture fundingSeries Bventure capital
Venture capital financing is a type of financing by venture capital. It is private equity capital provided as seed funding to early-stage, high-potential, growth companies (startup companies) or more often it is after the seed funding round as a growth funding round (also referred to as series A round). It is provided in the interest of generating a return on investment through an eventual realization event such as an IPO or trade sale of the company. To start a new startup company or to bring a new product to the market, the venture needs to attract funding. There are several categories of financing possibilities.
Business Plansbusinessbusiness goal
Startup company funding. Venture capital. Internal use. Management by objectives (MBO) is a process of agreeing upon objectives (as can be detailed within business plans) within an organization so that management and employees agree to the objectives and understand what they are in the organization. Strategic planning is an organization's process of defining its strategy, or direction, and making decisions on allocating its resources to pursue this strategy, including its capital and people. Business plans can help decision makers see how specific projects relate to the organization's strategic plan.
small businessesmom and popsmall business owner
In contrast, startups aim for growth and often offer an innovative product, process or service, and the entrepreneurs of startups typically aim to scale up the company by adding employees, seeking international sales, and so on, a process which is financed by venture capital and angel investments. Successful entrepreneurs have the ability to lead a business in a positive direction by proper planning, to adapt to changing environments and understand their own strengths and weakness. Spectacular success stories stem from startups that expanded in growth. Examples would be Microsoft, Genentech, and Federal Express which all embody the sense of new venture creation on small business.
high technology ecosystemhigh technology and entrepreneurship ecosystem
Startup ecosystem. Business cluster. Economies of agglomeration. Collaborative innovation network. Coworking. Innovation system. Venture capital. Babson Entrepreneurship Ecosystem Program. Babson Global. The Dutch Entrepreneurial Ecosystem. MIT Entrepreneurship Center. The Development of University-Based Entrepreneurship Ecosystems: Global Practices. New Orleans start-ups and all that jazz. Where Israeli Entrepreneurship Really Came From. President Obama Can Make Start-Up America Succeed. Dear President Medvedev: Stop Emulating Silicon Valley.
Crowdfunding Equity-based crowdfundingequity funding
Venture capital financing.
Startup Business Model Evaluators. Business Angel Networks. Venture capital companies. Equity Crowdfunding portals. Corporates (telcos, banking, health, food, etc.). Other funding providers (loans, grants etc.). Start-up blogs and social networks. Other facilitators. A Beginner's Guide to the Nordic Startup Ecosystem - Forbes. Knowledge Commercialization and Valorization in Regional Economic Development. Startup Weekend: How to Take a Company From Concept to Creation in 54 Hours - Marc Nager, Clint Nelsen, Franck Nouyrigat.
angel fundssuper angel investor
Super angel (or "super-angel") investors are a group of serial investors in early stage ventures in Silicon Valley, California, and other technology centers who are particularly sophisticated, insightful, or well-connected in the startup business community. Super angels share some characteristics of traditional angel investors, and venture capitalists, and have been described as a hybrid of the two models. According to Fast Company, super angels "raise funds like venture capitalists but invest early like angels and in sums between the two, on average from $250,000 to $500,000."
CEOmanaging directorchief executive
The chief executive officer (CEO), or just chief executive (CE), is the most senior corporate, executive, or administrative officer in charge of managing an organization especially an independent legal entity such as a company or nonprofit institution. CEOs lead a range of organizations, including public and private corporations, non-profit organizations and even some government organizations (e.g., Crown corporations). The CEO of a corporation or company typically reports to the board of directors and is charged with maximizing the value of the entity, which may include maximizing the share price, market share, revenues, or another element.
New YorkNew York, New YorkNew York City, New York
Silicon Alley, centered in Manhattan, has evolved into a metonym for the sphere encompassing the New York City metropolitan region's high technology industries involving the Internet, new media, telecommunications, digital media, software development, biotechnology, game design, financial technology ("FinTech"), and other fields within information technology that are supported by its entrepreneurship ecosystem and venture capital investments. In 2015, Silicon Alley generated over US$7.3 billion in venture capital investment across a broad spectrum of high technology enterprises, most based in Manhattan, with others in Brooklyn, Queens, and elsewhere in the region.
intellectual property rightsIPintellectual properties
Entrepreneur and politician Rickard Falkvinge and hacker Alexandre Oliva have independently compared George Orwell's fictional dialect Newspeak to the terminology used by intellectual property supporters as a linguistic weapon to shape public opinion regarding copyright debate and DRM. In civil law jurisdictions, intellectual property has often been referred to as intellectual rights, traditionally a somewhat broader concept that has included moral rights and other personal protections that cannot be bought or sold. Use of the term intellectual rights has declined since the early 1980s, as use of the term intellectual property has increased.
A third usual source of capital for startup companies has been venture capital. This source remains largely available today, but the maximum statistical amount that the venture company firms in aggregate will invest in any one company is not limitless (it was approximately $15 million in 2001 for a biotechnology company). A fourth alternative source of cash for a private company is a corporate partner, usually an established multinational company, which provides capital for the smaller company in return for marketing rights, patent rights, or equity. Corporate partnerships have been used successfully in a large number of cases.
This is different from being an apprentice; a business mentor provides guidance to a business owner or an entrepreneur on the entrepreneur's business. An apprentice learns a trade by working on the job with the "employer". A 2012 literature review by EPS-PEAKS investigated the practice of business mentoring, with a focus on the Middle-East and North Africa region.
Online shopping has grown exponentially both for major retailers and small businesses and entrepreneurs, as it enables firms to extend their "brick and mortar" presence to serve a larger market or even sell goods and services entirely online. Business-to-business and financial services on the Internet affect supply chains across entire industries. The Internet has no centralized governance in either technological implementation or policies for access and usage; each constituent network sets its own policies.
Economic development is the process by which a nation improves the economic, political, and social well-being of its people. The term has been used frequently by economists, politicians, and others in the 20th and 21st centuries. The concept, however, has been in existence in the West for centuries. "Modernization, "westernization", and especially "industrialization" are other terms often used while discussing economic development. Economic development has a direct relationship with the environment and environmental issues. Economic development is very often confused with industrial development, even in some academic sources.