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What is the Idea of a Startup?
It’s fair to say that the difference between a startup and other companies is not apparent to everyone. Usually, the word “startup” is associated with a super-successful project developed from scratch into a multi-million-dollar business. What’s missing from this picture is that at the heart of every startup, whether successful or not, is the business idea that everything revolves around.
However, not every business idea is suitable for building a startup. It’s almost always about an invention, a new product, a new technology, or an innovative approach. Moreover, there should be excellent business potential. In other words, introducing such an invention, launching a product on the market, or implementing a new methodology or innovative approach should bring significant profit to its developers, participants, and investors.
The Main Differences Between a Startup and Other Companies
A startup, unlike a regular business, always has the following stages of its formation and development:
- Finding an innovative startup idea good enough to become a business project.
- The startup founders should secure their rights to the innovation through a patent, copyright, know-how agreement, etc.
- The startup is usually registered as a Delaware C-Corporation.
- The startup business plan and presentations aim to attract the investors necessary to implement the startup project.
- A startup usually has its exit point, either selling the company or bringing it to an IPO.
In What Areas of Business Are Startups Usually Created?
Startups are usually associated with IT companies. However, recently this started to change. Even though IT projects still attract significant investments and are the focus of attention of investors and the press, the scope of startups covers almost all areas of business and human life. Inventions and innovations enter all areas of the economy and human communication.
Therefore, although IT startups still claim a large share of venture capital, new business startups are being created almost everywhere. And the public interest in this kind of business is consistently growing. America loves startups. Many young people often choose startups as their employers . Many states have special programs to support startups. See, for instance, New York State Tax Credit and Academic Partnership Program .
Why Does It Make Sense to Set up a Startup in the USA?
Although you can set up a startup in any country, the USA is the best place for that . The USA has the best conditions for creating, financing and developing startups in any field. These conditions are primarily due to the stable US political system, the world’s largest economy focused on private business and innovation, and the most capital-intensive venture capital markets. In addition, the world’s largest stock exchanges, the NYSE and the NASDAQ, are also in America.
Our law firm FESENKO, P. C. pays special attention to cooperation with founders and managers of startups from other countries. We will be happy to provide you with legal and consulting assistance at any stage of your startup development: from its registration up to its successful launch on the market through an IPO. Contact us to find out how we can help your startup grow successfully in the USA.