Startup & Innovation
August 10, 2009
Innovation, Invention, Creativity, and Experimentation
Creativity is the ability to think and act in ways that are. In our minds, there are two kinds of creativity,
Innovation is thinking creatively about something that already exists (e.g., the tape recorder, Walkman, and CD player are all innovations on the phonograph).
Invention is creating something that did not exist before (e.g. the phonograph).
Experimentation is the process by which people become creative. When you experiment, you don’t know the outcome. You can only guess. Often, experimentation leads to a surprise — something you didn’t expect. This is the power of creativity.
What is Startup Company?
A startup company is a business with a limited operating history.
Many startups are initially funded by the founders themselves.
While slow-growth businesses may be startups, investors are most attracted to those new companies distinguished by their risk/reward profile and scalability.
That is, they have lower bootstrapping costs, higher risk, and higher potential return on investment. Successful startups are typically more scalable than an established business, in the sense that they can potentially grow rapidly with limited investment of capital, labor.
A company may cease to be a startup as it passes various milestones, such as becoming profitable, or becoming publicly traded in an IPO, or ceasing to exist as an independent entity via a merger.
The Internet bubble of the late 1990s was associated with huge numbers of internet startup companies, some selling the technology to provide internet access, others using the internet to provide services.
What is the need of Startup Company?
The investors are most attracted to those new companies distinguished by their risk/reward profile and scalability. That is, they have lower bootstrapping costs, higher risk, and higher potential return on investment. Successful startups are typically more scalable than an established business.
How far the new technology will helpful to Startup Company?
Startup companies, particularly those associated with new technology, sometimes produce huge returns to their creators and investors – a recent example of such was Google, whose creators are now billionaires through their share ownership. However, the failure rate of startup companies is very high.