Important to know startups because we deal with a lot of them especially on the open source team and the ui/ux/mobile team but eventually the other teams could be dealing with them as well
- Startup is a company, a partnership or temporary organization designed to search for a repeatable and scalable business model. These companies, generally newly created, are in a phase of development and research for markets. The term became popular internationally during the dot-com bubble when a great number of dot-com companies were founded.
- Venture Capital- is financial capital provided to early-stage, high-potential, high risk, growth startup companies. The venture capital fund makes money by owning equity in the companies it invests in, which usually have a novel technology or business model in high technology industries.
- Self funded-usually people who started the company
- Very beginning of outside funding-friends/family-couple thousand here or there
- Small Investments by private individual-usually Wealthy
i. Series A
- Grow Company
- Major Investments from Venture Capitalist–Series A rounds are a critical stage in the funding of new companies. A typical Series A round is in the range of $2 million to $10 million, purchases 20% to 40% of the company, and is intended to capitalize the company for 6 months to 2 years as it develops its products, performs initial marketing and branding, hires its initial employees, and otherwise undertakes early stage business operations.
- Depends on the Burn rate
i. Ex funded 1 million-burn rate is 500k a month—out of money after two months
ii. Series B
- Grow Product- at this point, the idea has been transformed into a product
- Gets its first real taste against competition
- Tends to show if it will make it or not
iii. Series C
- Stage is seen as the expansion/maturity phase of the previous stage.
- Done by selling more product or adding a marketing team
iv. Can go public at any point this is just how it usually works
- Could never go public as well
- IPO-Initial Public Offering
- Company becomes publicly traded
- Investors can receive a return
- Company gets acquired
- Company acquihired-acquires team/talent
i. Google is notorious for this
- Risk of Loss
i. Seed Stage-66.2%
ii. Series A-53%
iii. Series B-33.7%
iv. Series C-20.1%
v. Bridge Stage/ IPO-20.9%
III. Why is this important to be up to date on?
- Great Source Material-easy to find out what companies are being funded
- Great Pitch/Entry Point
- They have to hire because they are growing and have money to burn
- Series C funding-5.3 million
IV. Talener and Startups
- We tend to want to work with after series A funding
i. More Stability
ii. Hiring People
iii. Have the capital
- How many of you guys worked with startups so far?
- Have you ever been burned-DC
- Whats the risk of working with startup vs company
- Control the process
- Quicker hire
- Better communication
- Very picky of who the hire
-Mayor Bloomburg –Made in NY Digital Map
–shows all tech startups hiring(324) and their investors in the five boroughs- They have over 500 start ups shown–Bloomsburg plan is to make NYC the Next Tech Hub
Why we should know and care about startup culture?
-A lot of start ups in manhattan
-Most are using some form of tech
-The have capital
-Sound intelligent to clients/potential clients
-CA’s ask about it-want to know how stable a company is
They also believe that due to the “two way communication” nature of NFC technology, they will continuously beam back coupons and advertisements for their products etc. when a purchase is made, which will draw in more revenue
If NFC technologies become as widespread as research suggests, it would definitely empty out our bags and pockets
(No house keys, no credit cards, licenses, store loyalty cards, subway pass, concert/play/movie/plane tickets, passport, etc.)
Mobile development to financial companies could become a much bigger industry
Talener in general should be looking out for new trends and technology such as NFC. We want to know what’s going on and to be relevant in current technologies when we speak with our hiring managers.
Engineers like to build new technologies – there will be more and more engineers wanting to use it