Life​ ​Cycle​ ​Analysis​ ​of​ ​Startups 

Summary:
To​ ​study​ ​different​ ​lifecycle​ ​stages​ ​of​ ​startups​ ​and​ ​work​ ​out​ ​critical​ ​success​ ​factors​ ​in​ ​each​ ​life​ ​stage.​ ​Three
different​ ​startup​ ​types​ ​were​ ​selected​ ​for​ ​study​ ​-​ ​food,​ ​app​ ​analytics​ ​and​ ​social​ ​startups.
Task​ ​out​ ​the​ ​factors​ ​that​ ​are​ ​important​ ​from​ ​success​ ​point​ ​of​ ​view​ ​in​ ​each​ ​lifestyle​ ​stage​ ​by​ ​going​ ​under​ ​the
background​ ​theories​ ​related​ ​to​ ​these​ ​context.
Next​ ​phase​ ​was​ ​creation​ ​of​ ​Success​ ​Factor​ ​Scorecard,​ ​where​ ​surveys​ ​and​ ​questionnaire​ ​were​ ​conducted​ ​to
get​ ​response​ ​from​ ​different​ ​startups​ ​and​ ​use​ ​these​ ​valuable​ ​inputs​ ​to​ ​give​ ​the​ ​final​ ​framework.​ ​The​ ​Scorecard
model​ ​compromises​ ​the​ ​critical​ ​success​ ​factors​ ​for​ ​each​ ​stage​ ​through​ ​key​ ​performance​ ​indexes.​ ​After​ ​that,
Statistical​ ​technique​ ​like​ ​factor​ ​analysis​ ​was​ ​done​ ​to​ ​validate​ ​the​ ​hypothesis.​ ​Cluster​ ​analysis​ ​was​ ​also
performed​ ​to​ ​group​ ​startups​ ​together​ ​on​ ​the​ ​basis​ ​of​ ​their​ ​similarities.​ ​Observations​ ​from​ ​both​ ​facts​ ​and
analysis​ ​presented​ ​were​ ​part​ ​for​ ​recommendations.

Different​ ​Startups:
1. SME​ ​Niwas​ ​-​ ​Financial​ ​Service/Solutions
2. Airpix​ ​-​ ​Drone​ ​solution​ ​provider
3. iKen​ ​Solutions​ ​-​ ​Hybrid​ ​artificial​ ​intelligence​ ​techniques
4. JSK​ ​Explorers​ ​-​ ​Platform​ ​for​ ​internships,​ ​recruitment​ ​projects​ ​etc.
5. Energized​ ​Solutions​ ​-​ ​Lighting​ ​solutions
6. Swarajya​ ​Infotech​ ​-​ ​IT​ ​solutions​ ​and​ ​consultancy
7. Mapicle​ ​-​ ​News​ ​summarising​ ​app
8. Coinn​ ​-​ ​Payments​ ​app
9. MedPrime​ ​-​ ​Medical​ ​device​ ​company
10. Wegilant​ ​-​ ​Security​ ​and​ ​vulnerability​ ​in​ ​mobile​ ​apps
11. BriefKase​ ​-​ ​Digital​ ​marketing​ ​solutions
12. Kernl​ ​-​ ​Online​ ​crowdfunding​ ​platform
13. MovinCart​ ​-​ ​On​ ​demand​ ​delivery​ ​service
14. BoiBanit​ ​-​ ​Food​ ​ordering​ ​marketplace
15. Trakstar​ ​Product​ ​Innovation​ ​-​ ​Attendance​ ​management​ ​for​ ​educational​ ​institutions
16. Tracxn​ ​-​ ​Data​ ​analytics​ ​for​ ​VC​ ​firms,​ ​private​ ​equity​ ​firms​ ​etc.
17. Inayo​ ​-​ ​Online​ ​medical​ ​shops

Life​ ​Cycle​ ​Stages:

1. Concept​ ​and​ ​Seed​ ​Stage​ ​-​ ​4​ ​critical​ ​factors​ ​with​ ​10​ ​KPI
2. Early​ ​Stage​ ​-​ ​6​ ​critical​ ​factors​ ​with​ ​11​ ​KPI
3. Growth​ ​Stage​ ​-​ ​3​ ​critical​ ​factors​ ​with​ ​12​ ​KPI
4. Exit​ ​Stage​ ​-​ ​2​ ​critical​ ​factors​ ​with​ ​6​ ​KPI

Framework​ ​Hypothesis:
In​ ​this​ ​framework​ ​is​ ​that​ ​critical​ ​success​ ​factors​ ​considered​ ​in​ ​each​ ​stage​ ​are​ ​only​ ​important​ ​in​ ​its​ ​respective
stage,​ ​any​ ​of​ ​the​ ​critical​ ​success​ ​factor​ ​cannot​ ​be​ ​important​ ​in​ ​any​ ​other​ ​lifecycle​ ​stage.

Conclusions:
❏ Critical​ ​success​ ​factors​ ​considered​ ​in​ ​each​ ​stage​ ​are​ ​only​ ​important​ ​in​ ​its​ ​respective​ ​stage,​ ​any​ ​of​ ​the
critical​ ​success​ ​factor​ ​cannot​ ​be​ ​important​ ​in​ ​any​ ​other​ ​lifecycle​ ​stage.
❏ All​ ​Critical​ ​Success​ ​Factors​ ​are​ ​highly​ ​positive​ ​correlated​ ​with​ ​the​ ​probability​ ​of​ ​success​ ​in​ ​all​ ​startup
stages​ ​except​ ​the​ ​Critical​ ​Factors​ ​i.e.​ ​Resources​ ​and​ ​Marketing​ ​that​ ​have​ ​negative​ ​correlation​ ​with​ ​the
probability​ ​of​ ​success​ ​in​ ​an​ ​exit​ ​stage.
❏ Summary​ ​of​ ​dominant​ ​KPIs​ ​for​ ​Critical​ ​Success​ ​Factors:
​ ​Entrepreneur​ ​-​ ​Industry​ ​Experience,​ ​Technocrat​ ​and​ ​Risk​ ​Appetite
​ ​Product/Services​ ​–​ ​Product​ ​Differentiation
​ ​Legal​ ​Agreements​ ​-​ ​Equity​ ​Arrangements​ ​and​ ​IP​ ​ownership
​ ​Expert​ ​Guidance​ ​-​ ​Incubators​ ​and​ ​Accelerators​ ​,​ ​Mentors​ ​-Technical​ ​Consultants
​ ​Marketing​ ​Capability​ ​-​ ​Customer​ ​Service​ ​and​ ​Distribution​ ​Network
​ ​Corporate​ ​Governance​ ​–​ ​Financial​ ​Accounting
​ ​Management​ ​Strategy​ ​-​ ​Target​ ​Business​ ​Goals,​ ​Business​ ​Partners,​ ​Market
Position​ ​and​ ​Comprehensive​ ​Communication
​ ​External​ ​Environment​ ​-​ ​Location​ ​and​ ​Competitive​ ​Forces
​ ​External​ ​Factors​ ​-​ ​Macroeconomic​ ​and​ ​Micro-economic​ ​factor
​ ​Internal​ ​Factors​ ​-​ ​People​ ​Management​ ​and​ ​Capital​ ​Constraint
❏ Concept​ ​/​ ​Seed​ ​Stage​ ​-​ ​Product/Service​ ​is​ ​the​ ​most​ ​important​ ​factor​ ​amongst​ ​the​ ​rest.​ ​Others​ ​are​ ​not
equally​ ​important.
❏ Early​ ​Stage​ ​-​ ​Marketing​ ​Capability​ ​is​ ​the​ ​most​ ​important​ ​factor​ ​amongst​ ​the​ ​rest.​ ​Others​ ​are​ ​almost
equally​ ​important.
❏ Growth​ ​Stage​ ​-​ ​Management​ ​Strategy​ ​and​ ​External​ ​environment​ ​are​ ​the​ ​most​ ​important​ ​factor​ ​amongst
the​ ​rest.​ ​Others​ ​are​ ​not​ ​equally​ ​important.
❏ Exit​ ​Stage​ ​-​ ​All​ ​are​ ​equally​ ​important.
Critical​ ​Success​ ​Factors​ ​of​ ​the​ ​survival​ ​of​ ​startups​ ​with​ ​Radical​ ​Innovation 

Summary:
The​ ​purpose​ ​is​ ​to​ ​determine​ ​which​ ​factors​ ​are​ ​most​ ​important​ ​for​ ​the​ ​success​ ​of​ ​a​ ​startup​ ​with​ ​a​ ​radical
innovation​ ​in​ ​the​ ​first​ ​three​ ​years.​ ​A​ ​conceptual​ ​model​ ​is​ ​designed​ ​in​ ​which​ ​three​ ​main​ ​factors​ ​determine​ ​the
success​ ​of​ ​growth:​ ​the​ ​uniqueness​ ​of​ ​the​ ​advantages​ ​of​ ​the​ ​innovation,​ ​the​ ​startup​ ​organization​ ​characteristics
and​ ​the​ ​person​ ​of​ ​the​ ​entrepreneur.​ ​A​ ​survey​ ​was​ ​setup​ ​with​ ​startup​ ​companies​ ​which​ ​are​ ​not​ ​older​ ​than
fifteen​ ​years​ ​and​ ​which​ ​are​ ​active​ ​in​ ​a​ ​diversity​ ​of​ ​segments.​ ​Growth​ ​was​ ​operationalised​ ​in​ ​two​ ​ways:​ ​the
growth​ ​in​ ​turnover​ ​and​ ​the​ ​growth​ ​in​ ​employment.

Innovation:
Innovation​ ​is​ ​a​ ​process​ ​that​ ​delivers​ ​added​ ​value​ ​and​ ​newness​ ​to​ ​an​ ​organization,​ ​suppliers​ ​and​ ​customers​ ​by
the​ ​development​ ​of​ ​new​ ​processes,​ ​procedures,​ ​solutions,​ ​products,​ ​services,​ ​new​ ​methods​ ​of
commercialization​ ​and/or​ ​business​ ​model​ ​by​ ​a​ ​small​ ​entrepreneurial​ ​or​ ​large​ ​established​ ​firm​ ​in​ ​an​ ​open​ ​or
closed​ ​system.

Radical​ ​Innovation:
A​ ​radical​ ​innovation​ ​is​ ​an​ ​innovation​ ​with​ ​a​ ​unique​ ​and​ ​original​ ​product​ ​,​ ​system​ ​or​ ​business​ ​model,​ ​that​ ​will
make​ ​other​ ​already​ ​existing​ ​ones​ ​unnecessary​ ​or​ ​obsolete​ ​and​ ​has​ ​a​ ​high​ ​uncertainty​ ​of​ ​success​ ​because​ ​of
the​ ​level​ ​of​ ​newness​ ​and​ ​obscurity​ ​of​ ​the​ ​needed​ ​design​ ​effort,​ ​technology,​ ​knowledge​ ​and​ ​market.

Critical​ ​Success​ ​Factors:

1. Character​ ​of​ ​innovation​ ​-​ ​degree​ ​in​ ​which​ ​the​ ​radical​ ​innovation​ ​offers​ ​a​ ​unique​ ​advantage​ ​compared​ ​to
the​ ​existing​ ​possibilities
2. Character​ ​of​ ​entrepreneur​ ​-​ ​technological​ ​skills,​ ​market​ ​insight,​ ​willingness​ ​to​ ​take​ ​risk​ ​etc.
3. Organizational​ ​level​ ​-​ ​high​ ​speed​ ​capital,​ ​business​ ​plan,​ ​market​ ​focus​ ​etc.

Results:
❏ Turnover​ ​Success
❏ Innovation​ ​-​ ​Unique​ ​advantage
❏ Organization​ ​-​ ​business​ ​plan,​ ​proactive​ ​customer​ ​approach,​ ​75000​ ​euro​ ​seed​ ​capital,​ ​multiple
owners
❏ Entrepreneur​ ​-​ ​years​ ​of​ ​industry​ ​exp,​ ​relevant​ ​social​ ​network,​ ​number​ ​of​ ​previous​ ​jobs,​ ​years​ ​of
working​ ​exp.
❏ Employment​ ​Success
❏ Innovation​ ​-​ ​none
❏ Organizational​ ​-​ ​business​ ​plan,​ ​use​ ​of​ ​external​ ​advice​ ​and​ ​knowledge,​ ​75000​ ​euro​ ​seed​ ​capital,
use​ ​of​ ​investors​ ​money
❏ Entrepreneur​ ​-​ ​none
Start​ ​Up​ ​Companies​ ​:​ ​Life​ ​Cycle​ ​and​ ​Challenges 

Summary:
The​ ​paper​ ​tries​ ​to​ ​conceptualize​ ​the​ ​phenomenon​ ​of​ ​startups​ ​and​ ​recognize​ ​the​ ​challenges​ ​they​ ​might​ ​face.
Due​ ​to​ ​several​ ​reasons,​ ​studying​ ​these​ ​areas​ ​is​ ​of​ ​prime​ ​importance.​ ​First,​ ​many​ ​startups​ ​fail​ ​in​ ​the​ ​very​ ​early
stages​ ​and​ ​less​ ​than​ ​one​ ​third​ ​of​ ​them​ ​turn​ ​into​ ​companies-​ ​“high​ ​rate​ ​of​ ​failure”.​ ​Second,​ ​failure​ ​occurs​ ​due​ ​to
several​ ​reasons,​ ​such​ ​as​ ​lack​ ​of​ ​finance,​ ​team​ ​management​ ​problems,​ ​lack​ ​of​ ​enough​ ​business​ ​knowledge,
technology​ ​lag,​ ​etc.-“startup​ ​problems”. ​ ​Third,​ ​most​ ​of​ ​startups​ ​that​ ​survive​ ​might​ ​turn​ ​into
successful​ ​companies​ ​which​ ​play​ ​a​ ​significant​ ​role​ ​in​ ​economies-​ ​“success​ ​stories”.​ ​There​ ​is​ ​a​ ​black​ ​box​ ​called
“valley​ ​of​ ​death”​ ​which​ ​is​ ​a​ ​part​ ​of​ ​the​ ​early​ ​stage​ ​when​ ​startups​ ​face​ ​challenges.​ ​The​ ​paper​ ​attempts​ ​to
explain​ ​startups​ ​and​ ​recognize​ ​the​ ​challenges​ ​they​ ​might​ ​face​ ​in​ ​the​ ​valley.

Main​ ​Startups​ ​Theories:

1. Organisational​ ​Theories​ ​:
Argues​ ​the​ ​condition​ ​under​ ​which​ ​an​ ​organisation​ ​is​ ​planned​ ​and​ ​the​ ​processes​ ​followed​ ​in​ ​its​ ​initial
development​ ​have​ ​important​ ​consequences​ ​on​ ​its​ ​structure​ ​and​ ​performance​ ​in​ ​later​ ​life”.
2. ​ ​Management​ ​Theories:
They​ ​are​ ​either​ ​“perspectives”​ ​or​ ​“descriptions”​ ​of​ ​the​ ​relationships​ ​among​ ​“organizational
characteristics”.​ ​They​ ​have​ ​less​ ​to​ ​do​ ​with​ ​startups​ ​in​ ​an​ ​organizational​ ​sense​ ​and​ ​have​ ​more​ ​to​ ​do​ ​with
those​ ​entities​ ​as​ ​individuals/teams​ ​that​ ​coordinate​ ​their​ ​efforts​ ​toward​ ​some​ ​common​ ​goals.
3. Entrepreneurship​ ​Theories:​ ​(Most​ ​Dominant​ ​for​ ​early​ ​stage​ ​Startups)
Argues​ ​the​ ​characteristics​ ​of​ ​the​ ​founder​ ​and​ ​promoter​ ​of​ ​a​ ​new​ ​organization.​ ​It​ ​deals​ ​with​ ​idea,
creativity,​ ​innovation,​ ​new​ ​product​ ​or​ ​service​ ​development,​ ​opportunity,​ ​and​ ​the​ ​like.​ ​They​ ​are​ ​more
prone​ ​to​ ​be​ ​considered​ ​in​ ​the​ ​early​ ​stages​ ​of​ ​any​ ​business​ ​or​ ​organization​ ​.​ ​Going​ ​beyond
entrepreneurship​ ​theories,​ ​theories​ ​of​ ​organization​ ​and​ ​management​ ​will​ ​emerge,​ ​which​ ​deal​ ​with
managing​ ​people​ ​and​ ​organizations.

Lifecycle​ ​of​ ​Startups:

1.​ ​Bootstrapping​ ​Stage 2.​ ​Seed​ ​Stage 3.​ ​Creation​ ​Stage

Individual​ ​Efforts Team​ ​work Organizational​ ​Arrangements

Family​ ​and​ ​Friends Valuation Corporate​ ​finance

Low​ ​Investment Avg.​ ​Investment High​ ​Investment

Angel​ ​Investors Accelerators,​ ​Incubators Venture​ ​Capital

Challenges:
❏ Financial
❏ Human​ ​Resources
❏ Support​ ​Mechanisms
❏ Environmental​ ​Elements