Entrepreneurship 101

Startup; It is a name given to initiatives that use all technological possibilities to produce solutions to problems and respond to needs and develop ideas, products or services with comprehensive R&D studies. In Turkish, the terms "enterprise" or "new venture" are used. The word "startup", which has been adopted all over the world and has become a universal definition, is thought to have originated in Silicon Valley, the popular place of entrepreneurs, in the early 2010s. When we make a literal translation of the word, it means "to begin". In fact, the term "starting" gives a correct idea for the definition of startup. Because startup is universally used for “companies that start from scratch and develop and grow”.

What are the Development Stages of Enterprises?

Startup; It is a name given to initiatives that use all technological possibilities to produce solutions to problems and respond to needs and develop ideas, products or services with comprehensive R&D studies. In Turkish, the terms "enterprise" or "new venture" are used. The word "startup", which has been adopted all over the world and has become a universal definition, is thought to have originated in Silicon Valley, the popular place of entrepreneurs, in the early 2010s.

When we make a literal translation of the word, it means "to begin". In fact, the term "starting" gives a correct idea for the definition of startup. Because startup is universally used for “companies that start from scratch and develop and grow”.

A startup is established to develop an idea that has significant business opportunity and potential for impact. Sometimes the idea is an instant insight, but often it starts with the comprehensive development of an idea or solution for a meaningful problem with an identifiable market.

The evolution of a startup is a continuous process that starts as an idea and goes on until it Exit. It is often difficult to determine exactly where you are in the startup lifecycle because it involves so many factors. The length of each startup phase will vary greatly depending on the running of the business, your industry or your fundraising skills.

Knowing where you are in the process helps you anticipate what's next and prepare accordingly.

Initiatives have 3 main phases. These; Early stage ventures are venture founded (funded by venture capital funds) growth stage ventures and late stage ventures.

Knowing where you are in the process is especially helpful for startups. Your position can help investors, partners, potential employees, and others frame their thoughts about your current growth and potential for success.

Raising investment throughout the process is always a challenge, so you should start with a solid idea, a clear business plan and a strong founding team, increasing the probability of success. An early-stage startup starts with a scalable idea that attracts funding. This phase covers the period before securing your first Series A funding round. There are several imprecise terms used to describe your position at this stage, including seed, pre-seed, post-seed, pre-A, seed elongation, and others. These terms simply refer to points in the often long and difficult phase of gaining interest and growth.

The early stage starts with a potentially identical idea for the product or service targeting a market ready to generate value. You can usually have one or two other people on your team and generally have an uncertain organization. Although there is no formal structure or solid commitment to the concept or business, you and your team are heading in that direction and eagerly laying the groundwork for a launch.

When you are part of a very early stage venture, it should be recognized that your investment of time, money, ideas, rent for physical facilities, supplies and equipment are all at risk. In most cases, startups that are really at an early stage are not companies that can pay compensation and rent at market rate. Now is the time when you define your vision and mission, set important milestones, and develop a program to achieve those goals. Core co-founders with complementary skills are committed to the company and a foundation is being laid to develop your first product or service.

In an initial stage venture, you are expected to have more than an idea. Ideally, you should have a prototype or an actual product. For 5-10% of your equity, a wide range of advisors and experienced entrepreneurs should be reached to help you develop your product, develop your business model and most importantly connect with investors. The goal is to prepare for the day when you will present your idea to potential investors and other interested parties, including the media.

Early stage investors (angel investors and venture capitalists) take too much risk and want to be convinced that you have a solid product, an identifiable market, and a business plan with a strong team to implement it. Because of the advanced risk component, the first phase of fundraising often takes a long time and often involves evaluating a range of financing options. What characterizes the early stage more than anything else is creating an engaging pitch for seed money or Series A funding and correctly listing the evidence and performance metrics you need.

Criteria that show you're in the early stages:

Creating and distributing a product with early customers.

Demonstrate that the market fits your product.

To prove the sales dynamics that will support efficient growth.

Making sure you have an experienced team that can manage the designed business.

Here are the metrics that show you can move on to the next stage (VC-funded growth stage):

Focus on KPI-based measurable growth.

To have a share in the market and to provide a financial view that it can be increased.

The need to expand your customer base and scale production.

Build your team with defined roles and responsibilities.