A startup ecosystem is a combination of people and organization creating infrastructure for startups to succeed, it is a source for resources needed to support startups funding and provide pool for talent. It can exist in physical world where different organization and people come together to support startups or it can be organized virtual where different resources are connected through the internet. Startup ecosystem is driven by the force of like-minded people, the force aligns elements of startup ecosystem together and each element falls on its right place to support the startup.
Startup ecosystem requires organizing different elements together. Without these elements it would be challenging to create a new company. Well organized ecosystem support the growth of startups by providing much needed help to entrepreneurs.
A thriving startup ecosystem becomes a virtuous cycle for entrepreneurs to explore their ideas, research and invent new systems, implement ideas and innovation and grow the startup through various stages. A thriving startup ecosystem has at least 6 elements which are,
Talent – Beside the entrepreneurs starting company, other skills are needed to make the startup a success. Diverse pool of skills will ensure an entrepreneur can tap required skill to execute the strategy.
Events and networks – When people of like-minded meet, the ideas flourish and new companies are started. Investors, entrepreneurs and educators are brought together to nature new ideas to viable companies
Education – Universities support research and provide a pool of talent from the graduates. Universities and institution of higher learning train entrepreneurs and create programs which promote entrepreneurship
Advisors and Mentors – Experienced entrepreneurs and advisors coach entrepreneurs into the process of executing the idea to a successful business. Mentors and advisors help entrepreneurs avoid costly mistakes.
Incubators and Accelerators – Incubators and accelerators combine talents, education, mentors and financiers under one location to help entrepreneurs bring their ideas into the market. They are great place for navigating young companies and validating ideas for startups in the right directions.
Funding – Most new ventures requires funding to reach profitability. There are different sources of funding and a startup ecosystem is a source for entrepreneurs to tap the right funding for the startup. Risk appetite for investors varies, and depending with startup stage, entrepreneurs can tap the source of funding according to investors risk appetite.