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Startups and Unicorns in India

What Is a Startup?

A startup is a young company built to grow fast by solving a problem with a new product or business model, usually with outside funding.

A startup is a new business designed to grow quickly, often using technology to reach many customers at low extra cost.

Startup versus small business

A neighbourhood shop is a small business. A startup aims for rapid growth by serving many customers with a scalable product or service.

Official definition

In India, the government recognises startups through the DPIIT if they are young, innovative and below certain turnover limits.

Risk

Most startups fail. The few that succeed can be very valuable, which is why investors accept the high risk.

An app idea

A founder builds an app to book home repairs, and after early success raises money to expand to more cities.

Thinking every new business is a startup

Growth ambition and scalability distinguish startups.

Key takeaways
  • Startups aim for rapid scalable growth.
  • DPIIT recognises eligible startups.
  • Most fail.
  • Investors bet on a few big winners.
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