The typical startup
I talk about the reasons why I set up Mirai Inc in this article but today I thought this would be a good opportunity to talk a bit about how the company has progressed nearly a year after startup.
*Most* startups follow the same pattern:-
- 1. A need is identified and a company/site is created to fulfill that need by creating a service or product. The end goal is to gain value by fulfilling that need and then sell the company.
- 2. Venture capital is acquired from investors.
- 3. Capital is used to hire staff (engineers/marketing/product managers etc). Capital is also used to buy/rent office, furniture and equipment needed for daily operations.
- 4. Company either sinks or swims - if it sinks, the owners will probably try to sell it off.
- 5. Company is swimming rather well and is acquiring value regardless of whether its making money. A web company can be valued at the amount of registered users it has for example.
- 6. Company is valued at 10 million dollars - the owner sells.
[li] 7. Repeat steps 1 through 6.