Is creating a company the same as creating a startup? Because today they are used interchangeably as synonyms, and the truth is that they have nothing to do with management, risk and, above all, financing.
To begin with, many startups are born with a clear objective: to be bought by a foreign company. The reason is very simple: they are born from imported ideas and therefore they want the company that created the idea to take over the new startup in order to continue maintaining its leadership. In phone number in japanese this case, the main objective of the startup is to attract a large number of users in order to attract the attention of potential buyers. As you can understand, it is a dangerous game, and if it drags on for a long time, it can consume a lot of funding.
That is why a real startup is one that seeks to create a new business model that can be scalable and replicable , hence the high profitability expectations of its investors. But given the risk of creating a new business model, and as we say in finance "the greater the risk, the greater the profitability", its financing is usually subscribed by business angels. You might think that creating a company also has a lot of risk, but not as much as a startup.
Most companies are based on existing business models, which are sometimes subject to minor changes, but which do not usually change over the years, even though they may incorporate new technologies. For example, banking, despite the appearance of services such as online banking, its business model has hardly changed in hundreds of years.