1. IntroductionStarting newbusiness possesses opportunities however startups are exposed to high risks. Inorder to succeed, startup company should be unique or possess the potential tostand out, among a large number of other companies in the same type of business.Now days, in order to succeed, many factors are contributing to the success andgrowth including web-traffic, social media, networking, marketing campaigns,employees, funding etc. This presentationis based on the report provided by Forbes about the Top 100 (data) AnalyticsStart-ups of 2015, for the companies that develop and sell analytical softwarethrough the B2B model, which was produced by the Mattermark, a research firm providingdata about the venture capital companies. 2. GoalDefine which startups are the best to track and potentiallywork for.
3. ObjectivesExplain the results and provide the conclusion. 4. DATA 4.1 FREQUENCYDISTRIBUTION4.1.1 PopulationSummaryof data displaying all available variables, for the whole population of 100 companies,specifically names, growth score, stage, total funding and location for all 100companies subjected, through categories, source of data and the date isdetailed within Table 1.
4.1.2 SampleSummaryof data displaying variables for the top 10 companies, sorted by the variable”Total funding” is displayed through the Table 2, in descending order. 5. ANALYSIS5.1 Populationi) Location49% of the top 100 companies aresituated in the Bay Area, 11% in New York and 10% in Boston while remaining 30%of the companies are distributed through other locations, as per the Table …..
.. Bay Area:As we cansee from this table the mostpart of companies is situated in the Bay Area. That is because there are a lotof advantages in this area for creating a startup. Bay Area is a part of San Francisco. SanFrancisco is the most attractive ecosystem in the world. You can find somethingfor every stage your company is in.
It allstarts with great accelerators like YCombinator, 500 Startups and Alchemist.They connect you to San Francisco’s best advisors, angel Investors and VCs whoattend the Demo Days of the named programs above where startups pitch theirbusiness plan, month-over-month growth, etc.Additionally,it is easier to get funded in Bay Area than elsewhere because of the proximityto VCs like Andreessen-Horowitz, Social+Capital or SV Angel. The peopleinvolved in these investment firms have decades of experience in building greatstartups and contribute to San Francisco’s maturity which other startup hubsaround the world are still searching for. The SF Bay Area invests a lot ofmoney into startups. Also, thedensity of potential M&A opportunities from BigCos is higher which createsa certain buzz around coming here.Finally, the media coverage of rocketship startups like Uber, Slack, Dropbox orAirbnb can be very inspirational and push you to new height and to achievingamazing things. Also people are just so open to new ideas andventures, versus other parts of the world in Bay Area.
Despitethe increasing prevalence of tech hubs across the country, the Bay Area stilltakes the cake in one area—density. Nowhere else can you find such a concentrationof high-quality talent, founders, and investors.Accordingto the Wall Street Journal (https://www.wsj.com/articles/SB10001424052702303807404577434281019286006?mod=googlenews_wsj),San Francisco now boasts more than 94,000 people employed in tech, a 10 percentincrease from last few years.So, there are advantages and disadvantages of creating astartup in San Francisco/Bay Area.Disadvantages:1) High cost of living –life in Bay Area are expensive: rents are high; products are cost more moneythan in any other areas of the USA.
Despite the high cost of living also thereare potential earnings are higher.2) High competition – highcompetition for funding, high competition for customers and high competitionsfor talent. In Bay Area are situated heavy-weight companies like Facebook,Google and Amazon, so the competition for top talent is really very highbecause early-stage companies cannot compete in terms of salary and brand name;also, you have to have really an unique and innovative product to attractinvestors.3) Really high office rents– because of the nearness of Silicon Valley the office rent increased throughthe roof (for example, the price per square foot for office in 2015was $72.26. 4) High salaries – to hirea top talent in Bay Area is too expensive (you have to spend around $100 000.
00per year for a mid-career employees).5) Less loyalty – peopleare generally more loyal toward those they have existing relationships with,but same loyalty is somewhat less prominent when it comes to maintaining employees(prioritizing employee satisfaction and treating culture) – double standards.6) Bad Time zone – Nine-hour time difference from Bay Area to WesternEurope. Advantages:1) Large Talent Pool – there a lot of product-driven engineers,tech professional and web designers with the best country’s schools nearby.Annually these schools produced a lot of fresh bunches of talents. 2) Active Tech Community – no one does networking like does BayArea, there are a lot of meetings, educational seminars, networking events andetc. Also there is a Silicon Valley’s Tech Community.
3) Access to capital – Bay Area and Silicon Valley are home formany investors who are interested in tech, so there are a lot of prominentventure capital firms, incubators and etc.4) Faster Progress – there are a lot of resources in Bay Area,which could be useful for a startup. New York: New York City has long been known as a hub for finance,ecommerce, and health care startups. But recent years have seen a rise in another breed ofstartups tackling issues ranging from crime to housing, sports to beauty.There is no such accessible tech platform and resources inthe New York City for the startups and there are also very few industries inwhich you can make your startup.
Boston:It is amotherland of such companies as Facebook and Dropbox. There are topuniversities as Harvard and MIT and there is one of the highest rates ofventure capital investment in tech companies. In Boston produced some goodhardware and security software companies, but there just haven’t been a lot ofconsumer (focused companies). Most of the apps for phones weredeveloped in California (where is Bay Area).
It’s a hugely powerful ecosystem,and that doesn’t exist in Boston. So that is why Most of startups are in BayArea. ii) Funding (to fix a histogram)Total funding of the top 100 companies amount to US$7.012.
80billion out of which …..% is in ……, % …… in …….
, % ….. in …… and the remaining………………..
distributed through other locations, as per the Table …. For better understanding of the results, we have calculatedthe Average (mean) of the total funding, of the top 100 companies, which amountsto US$70.13 million (“70.13”), while the median of the total funding is US$35.95million (“35.95”) with standard deviation US$14.97 million (“14.97”) from themedian.
Further to the above, it should be noted that the skewnessis rightward or positive since the mean (70.13) is higher than the median(35.95), Table ……..
specifically, the average of total funding is higher thanthe median (middle) of total funding meaning that there are companies, withinthe top 100, which are outside the range. The outcome of the extreme resultsare displayed though the whiskers on the Box Plot, as per the Table ….. 5.2 Samplei) Location7 out of 10 top startups are located in the Bay Area, 2 in SaltLake City and 1 in New York, as displayed through the Table ….