Learning the Lingo
As SouthStart 2017 gets underway, there are a lot of first-time professionals wanting to start their venture in the most effective way possible. Although the conference is heavily beneficial when it comes to developing that game plan, there is some terminology that needs to be understood in order to get a bit more of a head start.
So without further a do, behold a list of terms with their definitions that will help a lot if you’re dipping your toe in the realm of startups.
When undertaking a new business venture, chances are that you’re going have to cough up some coins to get things going. Capital refers to the financial assets that an entrepreneur begins with, which is mainly acquired through Venture Capitalists (VCs) or other means of investment. Capital can come in different forms. Firstly, there is bootstrapping, which is a term that refers to starting up with nothing but your own personal resources. Otherwise, raising funds can be accomplished in many different ways, including by credit card, friends and family investments, personal investments, bank loans, VCs , angel investors or seed funding.
An angel investor provides funding for a startup during early stages of its establishment – otherwise known as the seed round. Investments during the seed round is useful when resources are needed to build up a concept or a prototype.
When looking to start up it’s pretty vital that you have some sort of understanding of the ecosystem you’re working with. The startup ecosystem refers to the community of connections that allows you to get started in the best possible way. This can consist of funding organisations, research organisations, service providers, support organisations, universities, big companies, mentors, advisors, incubators, accelerators and co-working spaces. Basically, an ecosystem is a good network of people helping each other to reach their goals.
Incubators are really useful when your startup is in its early stages of development – so they basically help to ensure that you’re setting yourself up for success. Incubators can help with the fundamentals such as building management teams, strategising growth and making plans for effective future trajectories.
Similar to incubators, accelerators are services in place to provide education and guidance within a fixed term for a startup company. They are particularly beneficial if there are specific deadlines you’re working under and prove to really jumpstart your venture and reach your goals at the right time.
Venture Capitalist (VC) funding
Significant funding is needed for many facets of a startup company if don’t have the funds or revenue already in place. A Venture Capital firm consists of investors who fund high-risk, new startup companies to ensure maximum growth is in place. Venture capitalists are experts and often favour particular markets and have a good idea of which companies are worth funding.
So now you have a small foundation of knowledge that will help you climb your way to success. If you can’t get enough of SouthStart 2017, checkout our Facebook, Twitter, Instagram and Snapchat to get the full experience.