Start-ups
476,000
new businesses are started
every month in the US
A start-up is a new business in the early stages of development and operation,
during which an entrepreneur or founding group comes up with an idea for
a product or service, researches it, develops a business plan, raises funds,
and launches with the goal of rapid growth. Registering intellectual property
(IP)—a unique creation, not just an idea—to protect it is an important stage of
the start-up process. Protection includes trademarks, patents, and copyright.
The term ”start-up” became
commonplace during the dot.com
boom of the late 1990s, when
thousands of entrepreneurs with
web-based products and services
found funding, many on the
strength of their intellectual
property alone. Giants Google
and Amazon both started up at
that time. Since then, technology
businesses have become one of the
most talked-about start-up types.
Their value is often based 100
percent on intellectual property.
INTELLECTUAL PROPERTY (IP) vALUE
The early days
Before a company is fully developed,
with a working business model, it
is known as a start-up. The start-up
evolves from an entrepreneur, or
group of entrepreneurs, with an
idea or invention. It can take a
few years to turn the initial concept
or prototype into a viable, profitable
venture, so the start-up founder
tries to attract support and financial
backing to achieve rapid growth.
During this phase, which can take
anything from a few months to several
years, the business changes quickly.
Internal start-ups Start-ups
that originate from inside a large
organization
Patent trolls Companies or
individuals who buy up the patents
of failed start-ups and attempt to
collect licensing fees from potential
infringers of the patent
NEEd TO kNOw
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HOW COMPANIES WORK
Start-ups
40%
the sales growth
achieved by online
start-ups in France,
in 2011–2012
Choose a
start-up type?
With a social conscience?
Primed to grow big?
To fit lifestyle?
See pp.30–31.
Seek help
Join a business
accelerator
Enter a business
incubator
Go it alone
Find an investor
See pp.38–39.
Make a
business plan
Explain how the
business will make money
Describe the unique
aspects of the business
Set out how much money
the business will need and
how much it will make
See pp.32–33.
Consider
the IP
Register IP
Find a name
Buy a domain
Research market
Find funding
Invest savings
Ask friends
and family
Take out a bank loan
Seek venture capital
Try crowdfunding
See pp.34–37.
Prepare to launch
Plan a marketing campaign
Run a test launch and refine
message and offer
See pp.196–197.
Launch
Win? Lose?
Research indicates
that, in most Western
countries, 80–90 percent
of start-ups fail.
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