What is a startup?
A startup is a young company founded by one or more entrepreneurs with the intention of developing a unique product or service and launching it on the market. A typical startup is started with a little money and the limited initial funding often comes from the founders or their friends and families.
Growth is important for all companies. Start-ups need growth to survive during the first months. When you start a business, it is necessary with financing and to acquire customers and then you need to reach your target group, which you can do digitally.
Start ups that have managed to become scale-ups with flash scaling
What are Scale-ups?
One term used in Silicon Valley is scale-ups where the philosophy is to quickly scale up a company's business. There is a lecture series on Youtube with Reid Hoffman at Stanford about how the big giants like Apple, Facebook, Uber, Palantir and Google have managed to scale up their business with a method he calls Blitzscaling.
Make sure the SEO works for your startup
For a startup to survive and succeed in the media noise, it is easier to use SEO and optimize your site for keywords to appear on Google.
SEO ie how the company appears on Google is important for start-ups. Be sure to learn the basics around SEO and onsite optimization, focus on keywords which has search volume on Google and create high quality content. Finally, also make sure that you creates external links to the site. Nothing is more important than getting the first customers, without customers it is difficult to be profitable.
Search engine optimization (SEO) is the process of getting your website visible in organic search on search engines like Google and Bing. When someone searches for a product or service on Google that you offer, you increase your chances of being seen.
Taking the top spots takes time and a lot of work. Search engines rank their results in order from best to worst results so to get a good position you need to write good content.
Swedish companies that used SEO early on are primarily Spotify, where the founder Daniel Ek very early on used the power of search engine optimization to be seen on relevant concepts in the music industry. Catenas Media, Blocket and Zalando are also examples of companies that have successfully used SEO and growth hacking to reach the market.
Use growth hacking methods
Be sure to use different types of growth hacks to tactically reach the market as:
read more about growth hacking.
Do you know the concepts?
In the startup world, there are some concepts to define where they stand in their development and how attractive they are to venture capitalists and financiers.
Companies that are younger than 5 years and that have an annual growth of 20% over a three-year period.
Venture capitalist Aileen Lee defined the term unicorn (Swedish unicorns) in 2013 for startups worth a billion dollars or more, and since then many private-equity companies have been obsessed with finding the next unicorn.
Since the corona crisis, many companies have been forced to lay off staff. A new trend is that they have started looking for camel companies.
CAMELS is an international credit rating system used by regulators and financial companies to rate them according to 6 factors.
- Capital adequacy (Capital adequacy, ie the amount that must be set aside to ensure the business's ability to live up to its commitments.) The capital adequacy ratio is calculated by dividing the capital base by the risk-weighted assets.
- Asset quality A measure of the price at which a bank or other financial institution can sell a loan or lease to a third party.
- Management (Lead)
- Earnings (Result)
- Liquidity (liquidity) ie short-term solvency.
A rating of one is considered the best, and a rating of five is considered the worst for each factor.
Sweden ranks high in the startup world
Stockholm is high up and is ranked 10th in Crunchbase Startup Genome Report 2020. The ecosystem that ranks highest in the startup world is Silicon Valley, followed by New York and London. Beijing comes in fourth place and Boston pinches 5th place followed by Tel Aviv and Los Angeles.