Investors are people who invest in different alternatives to maximize their returns. Investors have different strategies which influence their investment behavior. Some investors prefer investing in startups while some prefer established companies over startups.
All the major differences between startup and an established company have been briefly discussed in the following lines:
· Startup develops products or renders services under an unknown brand name whereas an established company does the same thing using a well known brand.
· Startups work with a small team usually performing all the tasks relating to marketing, finance, Human resources collectively whereas established companies have many people who only work on their predefined tasks.
· Startups encourage innovation whereas established companies limit innovative ideas because an employee at an established company is required to perform only the tasks which is been assigned to him/her.
· Startup is more flexible while an established company is rigid. An established organization is prone to bureaucracy.
· Decision flow is faster in a startup as compared to an established company
· Startups have a ton of room for growth whereas an established company is always limited to expansion because their growth becomes stagnant when the product reaches maturity stage in the product life cycle.
· There is more room to grow and learn working in a startup. One day, you’re learning about SEO and the next day, you are working on redesigning a product or service for customers. Exactly the opposite is true for an established company as it asks only limited output from its employees based on their field of expertise.
· Startups help its members grow along with it. It is a great platform for people who want to grow their career exponentially. Whereas an established company will also help its members grow at a lower pace.
· Investment wise if a startup turns out to be successful it can give multifold returns to its investors whereas in an established company the returns are usually limited.
Investing in startups is one hundred percent risky but it also has great rewards. Some investors like taking risks if they find that the product which a startup is offering has a potential. We at Convey Connect have a dream to revolutionize the startup ecosystem by connecting early startups with High Networth Individuals (HNIs). So if you are aspiring to raise funds for your startup or you’re willing to invest in these early startups then contact us ASAP.