The Silicon Review - Best Business Review Magazine 10 Best Startups of the Year 2019 Asia | Page 8

Paving the Way for Technological
A
ny person familiar with
technological advances
would surely have heard of
the term “startups”. As the name
probably is self-explanatory, a
startup is nothing but a company
that has recently been launched,
or started. Whenever we hear of a
large corporation, we often imagine
a sprawling headquarters with
thousands of employees working in
different shifts.
What most people fail to fathom
is the that any large corporation
from any sector, whether it is
telecommunications, software,
real estate, hospitality or even if
it is from the entertainment and
transportation sector, was once
started by a handful of individuals
with a common vision in a small
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JANUARY 2019
room and grew to mammoth sizes.
With the recent boom in the IT
industry, there are a number
of venture capitalists willing to
support technology startups with
large sums of money, and other
valuable resources like an office,
servers, website domain and
so on. For those people that are
unaware, Venture Capitalists (VC)
are professionals who assess an
idea brought forth by a budding
entrepreneur and determine if it is
investment worthy. If it is, then the
VC will pour money and even extend
a line of credit to the founders to
help them grow their company.
Later on, as the company grows and
makes it big, the investment also
grows and when the company goes
public, the investors can cash in
their investment, with gains which
are often many times the size
of their invested amount.
Angel Investments
When we look at large
corporations today, it is to be
understood that the founding
members of the company had
access to money in order to
launch and run their show. While
some entrepreneurs risk it all
by mortgaging their own house
or physical assets, some are
willing to part with a portion of
their company’s ownership by
bringing onboard an angel investor.
Such investors funnel money
and provide different forms of
expertise, in return for a percentage
of ownership of the company.
Several angel investors have raked
in billions of dollars when the