Why Startups Succeed — 5 Reasons (Examination)

Today I will make the summary of the popular TEDx “The single biggest reason why start-ups succeed”.

Speaker Bill Gross has worked with more than 100 companies in 20 years and he created a 5 clause reason list about startup success.

1.Idea

2.Team/Execution

3.Timing

4.Business Model

5.Funding

Guess which is the most important clue for success. Bill Gross guessed it was the “idea”. But he understood he was wrong because the idea is in the third place.

1)Timing

According to the talk, the main reason why startups succeed is Timing. The simplest way to explain this is to give examples.

When Airbnb launched most of the investors think that it won't work because no one would want to share their house with a stranger. But the timing was really good, the economy was not that good and people were looking for extra money.

2)Team

As Simon Sinek says you must find coworkers who “believe what you believe”. That's the point!

3)Idea

The idea is what makes the difference between competitors.

For example, there are many car renting companies or taxis in the world even so Uber has 36 million users around the world. So why does this happen? The answer is very easy because Uber has a difference it has an original idea and work method.

4)Business Model

The business model isn't that important a startup can launch without a business model and after when he gets a big audience it can add paid features.

5)Funding

Nowadays finding an investor is very easy. Angel investors are looking for new ideas outside. If your idea worths investing I believe you can find the funding you want.