[Must-see for entrepreneurs and investors] A thorough explanation of the differences between startups and ventures!
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Startups and venture companies: The key to Japan's growth
Startups and venture companies are attracting attention in the Japanese business world, but these two terms are often confused. Both start as "new companies," but in fact there are major differences in the direction they aim for and the growth process . This time, let's dig deeper into the differences and consider the future of startups and the emergence of unicorn companies.
What is a startup? 🌱
Startups are companies that use innovative ideas and the latest technology to innovate in the market. It refers to a company originating in Silicon Valley and pursuing rapid growth and new business models. Startups aim to grow rapidly in a short period of time and create social value, and will evolve with the support of venture capital (VCs) and angel investors.
What is a venture company? 💼
On the other hand, venture companies are companies that develop new services and businesses based on original ideas and technologies, but are not aiming for the rapid growth of startups. Rather, it is characterized by focusing on solid, long-term growth and continuing to grow while ensuring stable revenue.
Startup vs Small Business 🔄
Startups and small businesses are often confused, but the difference is huge. Startups aim to open up new markets based on innovative ideas and technologies, with the goal of M&A and IPOs (IPOs). On the other hand, small businesses are companies that seek stable revenue in a way that meets the apparent needs.
item | Startup | Small Business |
---|---|---|
Business Model | Create new markets based on innovative ideas | Creating businesses based on existing business models |
goal | Exit via M&A or IPO | Stable revenue and long-term growth |
Time axis | Aiming for a short-term exit, emphasizing speed | Building a balanced organization with long-term growth goals |
Growing startups and the emergence of unicorn companies 🐯
Now, more and more startups are growing rapidly to become unicorn companies (unlisted companies with a valuation of over $1 billion). In particular, startup funding is becoming more active in Japan, and many companies are raising large funds to provide new technologies and services. This will quickly increase the value of a company and become a global attention.
Differences from overseas 🌏
The American startup ecosystem, such as Silicon Valley, is dominating the world. Although Japan is not yet on that scale, it has been growing rapidly in recent years, and has been providing a wealth of support from the government and private sectors. In particular, "open innovation" is attracting attention, where startups collaborate with operating companies and create new innovations.
Future startups and unicorn companies
Startups will become an important force that will lead Japan's economy in the future. In particular, the increase in unicorn companies is expected to accelerate new business trends and bring innovation to society. With an ecosystem in place to support startups in place, I can't wait to see what's going on in the future.
Let's take a look at the trends of startups and unicorn companies and we will work together to watch the future of the Japanese economy! 🌟
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