The word “startup” is heard today at every turn, especially among young people. Although the beginnings of so-called “startup companies” or start-ups date back to the time of the organised economy, the trend of “startups” has increased sharply in the era of the “dot-com bubble”. This is a speculative bubble that occurred in the years from about 1997 to 2000. During this period, the stock markets of industrialised countries have seen huge growth in corporate securities in internet sectors and related areas. It all went on in the United States, where there was a mentality in those days that it was easier to create a job than to get it.
There are no defined and uniform indicators that would allo you different from others. I cite as an example Uber Inc., which, according to the latest data, has earned $1.2 billion in investment money at the company’s market value of $17 billion and still holds it a “startup company.” Today, many companies, even if they are engaged in service activities, self-call itself as a “startup company” in order to make it more attractive to investors and business partners. One of the essential features that distinguishes a start-up from the rest is the ability to achieve rapid economic growth. We do not see this with companies that trade in service activities and therefore, in my opinion, the placement of such companies as a ‘startup company’ is inappropriate. For example, a newly opened restaurant in Ljubljana or a newly created company with a business consultancy business can’t bear the title “startup company”. We also mention that in 2018 the adopted Investment Promotion Act tried to define an innovative start-up: start-up is an independent company thatdevelops or markets an innovative product, service or business model with high potential. The same law also lays down the conditions for when a company can be registered in the register of start-ups.
For starters, I might quote a quote from a business angel and one of the co-founders of the successful Slovenian company Mimovrste d.o.o., Jugoslav Petkovič, who wrote: “A start-up, my dear mine, is just a sexy word for a very unsymity period of entrepreneurial story when everything can go wrong.” And that is exactly what sums up the main thought of this introduction; companies should not focus on intemental in the world of “startups” but should focus on creating better, innovative and competitive products. After all, even the good sound of the word “startup” doesn’t bring results to a company if they have a product on the market that no one wants and doesn’t need.
What legal form should you choose when the company is set up? – Soon…
What are the legal problems facing startups? – Soon…
How much does a lawyer for startups cost? – Soon…