Startup means the act of starting something, usually related to companies and companies that are at the beginning of their activities and that seek to explore innovative activities in the market.
Startup companies are young and seek innovation in any area or field of activity, seeking to develop a scalable and repeatable business model.
A business model is how a company generates value for customers. A scalable and repeatable model means that, with the same economic model, the company will achieve a large number of customers and generate profits in a short time, without a significant increase in costs.
The term startup, to designate newly created and profitable companies, began to be popularized in the 1990s, when there was the first big "internet bubble". Many entrepreneurs with innovative and promising ideas, mainly associated with technology, found funding for their projects, which proved to be extremely profitable and sustainable.
At that time, a large part of the explosion of startup companies emerged in Silicon Valley (
Silicon Valley), a region of California, United States, from which companies such as Google, Apple Inc., Facebook, Yahoo!, Microsoft, among others, emerged.All these companies are examples of startups that today are strongly solidified and are leaders in their sectors in the market.
However, entrepreneurs must keep in mind that the initial phase of a startup is always marked by a scenario of uncertainty. Some seemingly profitable ideas may turn out to be inapplicable.
Startup in Brazil
The first companies to follow the startup model began to appear in Brazil at the beginning of the 21st century, and from of 2010 this branch showed a vertiginous growth, according to data from the Brazilian Association of Startups - ABStartups.