While startups will vary in niche and purpose, they can also vary in terms of setup and style. In this quick guide, we’ll take you through five of the main types of venture and what you can expect from them. Which of the following types suits your purpose the most?
Startups with a small business focus are those that tend to thrive on being small-scale. While many ventures and their founders strive for growth, some remain local and small in stature. This is entirely a choice - and it does not necessarily mean hunting for funding.
Small business ventures persist and grow purely on their core base. They continue to make money and create products for their niche audience and are happy to do so! Big business ventures, of course, are those much grander in scope. These companies don’t necessarily aim to change the world but to compete - the difference is obvious.
Scalable ventures and companies are perhaps a little more familiar. These are innovations and brands built up with growth as a driving concept. Their aim is to gain funding to grow over time, though their endgames may vary from case to case.
For example, some scalable enterprises may choose to ‘exit’ once they hit a specific value. Others, meanwhile, may prefer to continue running on a venture basis despite large-scale funding. Again, there’s a wealth of choice.
Buyable enterprises are those that seek to sell on their brands once they reach a particular value. Much in the same vein as a property developer, a buyable venture founder will ‘sell’ as an endgame.
For example, they may choose to sell their expertise and products to a more prominent conglomerate. It is, in many ways, a form of saving and investment to sell an asset at a profit.
Social enterprises and ventures strive to help enhance living standards and societal practice. Some may root themselves in green matters or in artificial intelligence to improve lives across the board.
In any case, these innovators primarily don’t have financial goals as endpoints. Some enterprises focus on enhancing the greater good, with profit being a bonus that may accrue along the way.
These enterprises primarily emerge as a result of a hobby or passion project. Many people, such as those working through Etsy, eBay or other online marketplaces, start businesses this way. Again, much like social enterprising, this business iteration revolves less around money and more around the experience.
Lifestyle ventures are very popular with companies and investors looking to harness talent. Creative people and engineers who show a genuine passion for what they do may prove to be lucrative acquisitions! At the very least, they may fast-track themselves into a broader niche.
Startups arrive in many shapes and sizes, and this list is only the beginning. Take a look at live data available through Fundz for blow-by-blow information on growth and funding.