what is a Startup and What are Startup Levels?

The rapid development of technology makes business competition increasingly fierce. Innovation and creativity are the keys to success to compete in this digital era. In Indonesia, young people are starting to contribute by building startups and with various business models that may not have been thought of before.

The presence of startups has made a real contribution to economic and technological development in Indonesia. In Indonesia, there are various types of startups with different levels. And some of them have reached the unicorn level. So what exactly is a startup?, what is its history?, and what are the stages?

Definition of Startup

If translated into Indonesian, startup means starting, or pioneering. So, it can be said that a startup is a company that has just started operations, or has just been started. It can also refer to a company that may still be in the analysis stage, or the research stage, or in the product development stage to find a suitable market.

Startup History

Things that may also be understood today, when we hear the word startup, which is a company engaged in technology. It became popular in 1998 to 2000, when many websites began to appear, one of which was google.com. Website at that time became the main thing to start a business. This era is also known as the dot-com bubble era, an era where websites began to appear.

Startup Rank

Within the startup itself, there are special terms that describe the level that has been reached by a startup. Each level describes how valuable a startup is. Here are 6 startup levels and their explanations.

1. Cockroach Level

Cockroach is the first level in the startup world. Pinned to companies whose total valuation is under 10 million dollars or under 140 billion rupiahs. Even though they are still cockroaches, companies at this level are very actively looking for investors to fund their businesses and expand their market coverage.

2. Ponies Level

Ponies are second level in the startup world. Pinned to companies whose total valuation has exceeded 10 million dollars or an average of 140 billion rupiahs. Companies like this are usually successful in finding investors, maintaining business and getting the right market. When at this stage, companies will find it easier to convince other investors to inject funds into their companies.

3. Centaurus Level

Centaurus is the third level in the startup world. Centaurus itself is a Greek mythological creature in the form of a horse with a half human body. When the company is in this position, it means that the company is strong enough, because the total valuation has reached 100 million dollars or equivalent to 1.40 trillion rupiah.

At this level too, the company has been truly recognized, the ease of finding investors is the main thing. At this level, the company has begun to be known by the wider community, but it is still on a national scale.

4. Unicorn Levels

Unicorn is the fourth level in the startup world. Companies of this level are really strong companies in many ways, and also very experienced. Companies at this level have reached a total valuation of 1 billion dollars or the equivalent of 14 trillion rupiah.

In the world, there are more than 3000 startups that have unicorn status. And in Indonesia alone, there are 4 startups that have entered this level, namely OVO, Tokopedia, Bukalapak and Traveloka. Companies at this level are really familiar to the public, even these companies are already known abroad and are starting to expand there.

5. Decacorn Level

Next is decacorn, decacorn is the fifth level in the startup world. Companies with this level have managed to achieve a total valuation of 10 billion dollars, equivalent to 140 trillion rupiah. From a financial point of view, companies at this level are already quite well established, and can even acquire other companies. In addition to the total valuation, companies will find it very difficult to find investors with funds above the company's total valuation.

In Indonesia, there is 1 company that has decacorn status, namely Gojek. Gojek has reached this level with the total valuation I mentioned above. Gojek has also expanded to several countries in Southeast Asia.

6. Hectocorn Level

Hectocorn is the last level of startup. Companies that have this status are world-class companies. The total valuation of this company is 100 billion dollars or around 1,400 trillion rupiah. Examples of these companies are Google, Microsoft, Facebook, Apple etc.

A few explanations about startups, a brief history and stages of startups according to their total value. Hopefully this article is useful and don't forget to comment and share with your friends! See you in another cool tutorial.