Workshop : What is a Startup Company? By the Founder of Mangcoding

What is a startup company?” This was the topic presented by the founder of Mangcoding, Mr. Nugraha, at the Capstone Project Exhibition and Presentation on Saturday, January 20, 2023, at the Nusaputra University Auditorium in Sukabumi. Now, let’s dive into the key points of the workshop below!

A startup company is a newly established business entity that focuses on identifying and developing its target market. In other words, a startup is an emerging company still in the development phase.

Since the late 1990s to the 2000s, startups have been closely associated with the internet, applications, and the latest technology.

History of Startup Development

Startups first gained recognition between 1998 and 2000 in the United States. During that time, the internet was at its peak and seen as a promising future industry, leading to the rise of many technology-based companies.

To strengthen their identity, many startups adopted names starting with “E” or ending with “.com”, which eventually led to the dot-com bubble phenomenon in the U.S. This event triggered intense competition among tech companies.

Characteristics of a Startup Company

• Business Age Less Than 3 Years
• Innovative and Disruptive
• Related to Technology
• Flexible with a Relatively Small Team

Types of Startup Companies

1. Lifestyle Start Up

A Lifestyle Startup is created by founders who are passionate about their hobbies and eager to turn their passion into a business.

Example of a Lifestyle Startup : FitLife – A personal fitness app that provides customized training plans and diet recommendations based on users’ lifestyles. It may also include health features and activity tracking.

2. Small Business Startup

A Small Business Startup is a self-funded venture started by entrepreneurs who aim for a stable business, even if growth is not guaranteed. Examples of Small Business Startups : Grocery stores, travel agencies, bakeries, or hair salons.

FreshBites – A small catering business focused on providing healthy and nutritious meals for corporate events, meetings, or individuals looking for a balanced diet.

3. Scalable Startup

A Scalable Startup is typically a tech-based company with high growth potential and a strong chance of attracting investors. These startups expand rapidly and often become global enterprises.
Examples of Scalable Startups : Google, Facebook, Twitter, Uber, idCloudHost, Wise.

4. Social Startup

A Social Startup is built to create positive change and benefit society, not just to generate profit. These businesses aim to make an impact while remaining financially sustainable.
Examples of Social Startups : Kitabisa.com, Edmodo.com (closed).

5. Large Company Startup

A Large Company Startup is an established corporation with a limited lifespan, adapting to changing customer preferences, technology, and competition. These companies often launch startups to reach new audiences and introduce innovative products while attracting investor funding.
Example : HOOQ – A collaboration between Singtel, Sony Pictures, and Warner Bros.

6. Buyable Startup

A Buyable Startup is built with the goal of being acquired by a larger company in the future. This model is common in the software technology industry, where entrepreneurs design businesses specifically for acquisition.

1. Unicorn

The term Unicorn refers to the lowest-tier startup category, with a valuation of $1 billion (approximately Rp. 15.6 trillion). Examples of Unicorn Startups:
Go-Jek, Traveloka, Tokopedia, Bukalapak.

2. Decacorn

A Decacorn is a mid-tier startup with a valuation of $10 billion (approximately Rp. 156 trillion). Examples of Decacorn Startups :
Grab, Pinterest, Dropbox, Xiaomi.

3. Hectocorn

A Hectocorn is a high-tier startup with a valuation of $100 billion (approximately Rp. 1,560 trillion). Examples of Hectocorn Startups : Facebook, Google, Microsoft, Apple.

In general, startups are not much different from conventional companies. However, there are several key aspects that set them apart.

The main differences between a conventional business entity and a startup are :

• Organizational Structure
• Funding Process
• Company Objectives
• Business Life Cycle

How to Build a Startup :

• Find a Good Idea
• Business Plan
• Idea Validation
• Funding (Own money, loan, investor)
• Create a Solid Team
• Development
• Market Strategy
• Legality
• Keep Growing & Analysis
• Be Flexible & Innovative

In Indonesia, there are several venture capital (VC) firms that have backed multiple unicorns. Many of them fund startups from an early stage before they attract global investors with deeper pockets. Some of these VC firms include :

1. East Ventures

East Ventures has a diverse portfolio and claims to be a pioneer in venture capital investments for startups in Indonesia.

2. Alpha JWC Ventures

Alpha JWC is a Southeast Asian venture capital firm focusing on early-stage to growth-stage investments. It debuted in Indonesia in 2016.

3. Intudo Ventures

An Indonesia-exclusive independent VC firm that invests in local companies, with investment sizes ranging from US$1 million to US$20 million.

4. Mandiri Capital

Mandiri Capital Indonesia (MCI) is a subsidiary of Bank Mandiri that invests and collaborates with technology companies.

5. MDI Ventures

MDI Ventures targets funding in Southeast Asia and globally. Its goal is to maximize the VC portfolio value within Telkom Group.

Indonesia is home to numerous startups across various industries. Below are some startups that have made an impact in the country.

The growth of startups worldwide is accelerating, including in Indonesia, which ranks as the sixth-largest country for startups. According to Startup Ranking (https://www.startupranking.com/countries) as of January 17, 2024, Indonesia has a total of 2,566 startups.

In conclusion, a startup company is an emerging business that is still in the development stage. Typically, startups are closely associated with technology, often having a website or even a digital application to make their services easily accessible to customers

That’s the explanation of Workshop : What is a Startup Company? By the Founder of Mangcoding that Mangcoding can share. Hopefully, this article is useful and provides new insights for you. If you have constructive feedback or suggestions, feel free to leave a comment or contact us via email and Mangcoding’s social media.