Today, many startups grow to become leading companies in their domains. Would you like to learn some of the startup terms with ELSA?
Startup refers to the action of starting a new business venture, or a new company at the early stage. Neil Blumenthal, co-founder, and co-CEO of Warby Parker define a startup as:
“A startup is a company working to solve a problem where the solution is not obvious and success is not guaranteed,”.
Ex: ELSA is a start-up.
Incubators refer to organizations that support startups, transforming their ideas into tangible products. The primary aim of an incubator is to help startup business grow.
Ex: YCombinator is a famous incubator in the United States.
An investor can be a firm or individual that invests money in return for stock in a company.
Ex: He is one of our biggest investors.
Venture capitalist /ˈvɛntʃəˈkapɪt(ə)lɪst/
Venture capitalists, often referred as VC, invest in later stage startups that already have customers and revenue, and aim to scale up their business. They usually invest in small companies because they can earn an enormous return when these companies are successful.
Ex: He is a veteran businessman, venture capitalist, and founder of the Internet consulting firm the Yankee Group
Crowdfunding is a method startup use to raise money, by collecting small amounts of money from a large number of people.
Ex: Crowdsourcing and crowdfunding could, in theory, occur without the internet, but “it certainly helps to accelerate the process.
There are more interesting terms about startup in the ELSA app. Let start practice with ELSA now!