Relationship between Entrepreneurship, Innovation and Performance - Assignment Example

Entrepreneurship & Innovation Name Professor Institution Course Date Entrepreneurship & Innovation Introduction The entrepreneurship and innovation have widely flourished and grown in the recent years (Parnell and Lester 2007, p.75). The face of entrepreneurship has changed as companies do not just involve in entrepreneurial activities, but also funds startups and individuals entrepreneurs who have the potential for success. Therefore, drawing from Crunchbase and other literatures, this paper will identify and review of 10 venture-capital backed startups that are pursuing high potential leading-edge entrepreneurial opportunities in the marketplace. Some of the startups that will be discussed include WhatsApp, Business Insider, Google Ventures, TransGaming, LinkedIn, Otto, Sequoia Capital, Triangle Peak Partners, True Ventures and CrunchFund. WhatsApp Description of the business and the funding secured by the venture CrunchBase described WhatsApp Messenger as the cross-platform, freeware, and an instant messaging app that is developed for smartphones (AlAbdullah, Paivenen & Kline 2016). However, WhatsApp now works on desktops. Statt (2016) pointed out that WhatsApp Inc is a company that was started in 2009 in California, US, and has grown significantly and now has more than one billion subscribers. In 2014, WhatsApp Inc was bought by Facebook Inc for roughly US$19.4 billion. As a start up, the venture secured funding from one investor worth $60.25M (AlAbdullah, Paivenen & Kline 2016). Sequoia Capital which was the lead investor agreed to fund WhatsApp project in three rounds. Market opportunity Despite internet messaging existing in other platforms like Facebook and twitter, no company has developed instant messaging where people could communicate real time. Therefore, WhatsApp was created to fill the gap in the market (Brem 2011, p.7). Target Market WhatsApp Inc has a large target market. However, the company highly segments its market based demographic and Psychographic factors. Demographic is based on population, age, social class and family size. Whatsapp targets young people. The research has found out that people who highly use WhatsApp are in the age between 18 and 34 years (Page 2015). This group is highly interested in Smartphones and internet. Psychographic segmentation is based on interest; lifestyle and behavior have played part in WhatsApp success. The segment is also tech-savvy and is embracing social media. Mahmood (2013, p.79) posited that large section of young people are interested in technology because they want to stay connected to their friends and families. Companies now use WhatsApp group platform to communicate to their employees. Why customers are going to buy/use the product/services The customers are likely to buy the service because it enables them to communicate with friends, their clients and families (Statt, 2016). Customers are likely to buy WhatsApp services because it enables them to send instant message which has not been possible with other social media platforms. Customers are considerably embracing WhatsApp because of its opening ratio. Statt (2016) claimed that Research has demonstrated that Whatsapps hold a higher opening ratio compared to emails. WhatsApp is also preferred by customers because it’s easier and cheaper to send message via this platform than send an email or call. Also, customers are going to buy WhatsApp because SMS is pricey (Page 2015). How the company is going to make money Although WhatsApp allows consumers send message and upload files at no cost, it still makes money. Page (2015) argued that in some nations, it costs approximately 1 US dollar to download the app. In other countries, the cost of downloading it for the first time is free. However, in the subsequent years, the interested customers will download it at a cost of $1. WhatsApp now has over I billion active subscribers and nearly one million new customers each day. In fact, researchers estimate that the company has annual revenue of $700 million (Page 2015). Business Insider The description of the business and the funding secured by the venture Business Insider is a company which was established in New York, US in 2007 by Henry Blodget and Kevin Ryan. CrunchBase described Business Insider as an online firm which offers news about business, technology and celebrity across America (Braz, Fawkes & Bettenhauser 2016). The online business also covers politics, finance and sports among other news. Due to its potential in terms of growth, the company was bought in 2015 by Axel Springer. The potential for growth nature for the business enabled it to secure funding worth $55.6M from the 13 investors including Axel Springer and Bezos Expeditions (Braz, Fawkes & Bettenhauser 2016). The market opportunity Competition and advancement of technology has created a situation where consumers now prefer online news compared to TV and newspaper news. Salman et al. (2011, p.3) asserted that consumers now want to news which they can read in any part of the world using their portable technological devices such as smartphones, tablets or laptops. Similarly, online users want news that runs continuously which is hardly provided by physical newspapers and TV (Salman et al. 2011, p.5). Therefore, Business Insider came in to capitalize on such market opportunity. The target market The company segment its market into different categories such business enthusiasts, political consumers, sports fanatics and entertainment (Braz, Fawkes & Bettenhauser 2016). As such, it provides its news in such categories. The company also segments its market based on demographic and Psychographic factors. Why customers are going to buy/use the product/services Customers are going to use business insider because they can access it in any part of the world provided there is a presence of internet. Customers are likely to buy Business Insider because its post new stories and breaking news continuously compared to print newspaper which is circulated once in a day (Salman et al. 2011, p.5). Customers are also likely to buy the services because it is a trend and more people now want to access news online on their technological gadgets. How the company is going to make money The company will make money by making its users to subscribe it news updates which they pay on a weekly, monthly or yearly basis. With high quality content, the company is likely to increase the number of subscription into its packages hence more revenues. Salman et al. (2011, p.4) claimed that the company also makes money by running ads which earns some funds per click. Google Ventures Description of the business and the funding secured by the venture Google Ventures now known as VC is regarded as a venture capital business and a branch of Alphabet Inc (Schonfeld 2009). The company offers venture, seed, and growth funding to the companies which operates in the technology industry. Klich (2015) contended that the company works separately from Google Inc. and aspires to fund startup firms in different sectors including Internet, hardware, software, cyber security and artificial intelligence among others. The company secured their funding by selling IPOs. The company also secured funds from investors. The research has shown that Google Ventures secured funding of up to $462 from Google, Alphabet Inc. and other investors (Klich 2015). The market opportunity There are several market opportunities in information technology that is currently available to companies and individuals. However, market opportunities are pointing towards software industry. The competition is in the new application, and companies which develop such product or services stand a chance of having a competitive advantage. Therefore, Google Ventures invest in software with an aim that there is return in new and innovation applications (Klich 2015). The target market The company majorly targets young adults in the age of 18 and 35 years. The age group is attracted to technology such as smartphones and new apps. The age group also contains young adults who are employed and have a high income to purchase smartphone and new phone applications (Schonfeld, 2009). Another target market for Google Ventures is the companies. Companies now use various applications for accounting, information processing, communication and file transfer and storage. Why customers are going to buy/use the product/services The customers such are going to buy the product because they enhance process such as entertainment, file transfer, storage, and access of some file formats. Individuals use some software such as files-share to share a folder containing music with friends. Companies also need software which can compress files so that they can store several files within a small capacity. How the company going to make money The company will make money by selling downloadable software to customers who are interested. The company is also going to make money by selling software in DVD to companies and individuals. The company also makes money by advertising strong brands on its website. TransGaming Description of the business and the funding secured by the venture Crunchbase depicted TransGaming Inc. as a company which deals in interactive entertainment such as games (Crunchbase Staff 2016). TransGaming Inc was established in 2001 in Toronto, Canada and has grown to become the leading company development of the interactive entertainment. Crunchbase Staff (2016) opined that the company develops games that are incorporated into Mac computers, Linux platforms and Television set-top boxes. In 2015, Nvidia saw the growth potential in TransGaming and acquired it. The company secured funding from both Nvidia and Intel. As the lead investors, Intel pumped in equity funding worth $500, 0000 (Crunchbase Staff 2016). The market opportunity Gaming apps is one of the trendy products in the technology industry. TransGaming entered into the market to fill the gap by developing innovative games. The company was the first to launch cloud gamming app in 2016 hence having a competitive edge in the market (Crunchbase Staff 2016). The Target Market TransGaming target market is the children and young adults. In particular, the company’s target customer is between the age of 8 and 35 years. Wesolowski (2014, p.34) posited that these are millennial who were born in the age of technology and great enthusiasm about computer and TV games, and general gaming. The company also targets middle class people who have disposable income to buy luxurious products such as game consoles (Kotler & Armstrong 2014, p. 112). Why customers are going to buy/use the product/services The customer is going to buy TransGaming’s products because they are associated with strong brands, Nvidia and Intel (Crunchbase Staff 2016). Also, customers will buy the company products because they have proved to be innovative by venturing into gaming in different platforms such gaming for cloud, for Smart TV, Linux platforms and Mac computers (Crunchbase Staff 2016). How the company is going to make money The company will make money by selling gaming software to Smart TV making companies. The company will also sell gaming software to Apple Inc and to companies making Linux platforms tom incorporate into their computers. The company can also make money by selling gaming consoles to individual companies. LinkedIn Description of the business and the funding secured by the venture LinkedIn is described as a specialized networking site which enables its users to develop business links, discover potential clients and search for the jobs (Zadeh et al. 2016). The company provides LinkedIn mobile across different languages and platforms such as Windows Mobile, Android, iOS, Blackberry, Nokia Asha and website which enable the developers to incorporate its services and content into their personal applications. Zadeh et al. (2016) postulated that the company is funded by Microsoft which acquired it in 2016. The company secured funding from Bain Capital Ventures, Bessemer Venture Partners and Sequoia Capital (Zadeh et al. 2016). The market opportunity Job market has moved from physical searching of job to looking for work on the online platforms. Even though many job websites now exist, many post random jobs which may not necessarily related to one’s area of specialization. However, LinkedIn moved it to create networking to fill the gap of posting jobs related to their careers and also allowing potential companies to view profiles of job seekers and contact them (Zadeh et al. 2016). The Target Market LinkedIn targets job seekers who are often from the age of 18years. The company also targets companies who are looking for employees and business which are looking for clients. Why customers are going to buy/use the product/services The customers are going to purchase LinkedIn’s service because it enables them to connect with potential companies seeking for employees. The number of unemployed people is quite high and jobs are on demand. How the company is going to make money The company makes money through per click terms. Every subscriber who clicks LinkedIn, money is sent the company’s account. The company also makes money through advertisements. Zadeh et al. (2016) argued that LinkedIn permits professional organizations and enterprises to advertise jobs on their website at a fee. The company has also tailored subscription packages which member can enter and pay monthly, quarterly or yearly. The company also makes money by partnering with advertisers who promotes other brands (Zadeh et al. 2016). Otto Description of the business and the funding secured by the venture Waldthausen, Waurick and Salk (2016) claimed that Otto is a startup firm that was started and founded in 2016 in San Francisco, California. Otto is described as independent startup which focuses on making of self-driving device for the trucks (Waldthausen, Waurick & Salk 2016). The firm develops technology, which allows drivers to permit their motor vehicle steer itself on particular sections of the road. Furthermore, Otto offers solutions which are fitted onto motor vehicles, hence supporting to take naps, have lunch as the vehicle steers itself and still have the safer trips. Due to its growth potential, Uber acquired Otto in August 2016 and funds its operation (Waldthausen, Waurick & Salk 2016). The market opportunity Although there could be attempts to develop them, but there has been no self-steering vehicles in the market. As such, investing in the area provide a competitive edge in the market. Otto will be boosted by the fact it is the first company to develop such technological device. The Target Market The target market for a self-steering device for a vehicle is the middle class and the upper class. Peng (2012, p. 127) asserted that consumers who belong to middle class and the upper class have high income to spend on luxurious products such as self-steering device. Why customers are going to buy/use the product/services The customer is likely to buy the product because it enables them to go to long distant journeys without becoming tired. The customer will also buy the product for prestige. Ndubisi and Iftikhar (2012, p.217) held that people who belong to middle class and upper class like to test new innovative and luxurious products which identifies with their social life. The product made by Otto also reduces the cost of hiring a driver. How the company is going to make money The company will make money by selling the self-steering device to individual customers. In addition, Otto will make money by selling the product to tourism companies who wants to reduce the operation cost, especially the cost of hiring more drivers. Sequoia Capital Description of the business and the funding secured by the venture Sequoia Capital is venture-capital backed startup which was set up in 2012 in California, US. Klich (2015) posited that Sequoia Capital deals in software, semiconductors, networking and communication, commercial services, biotechnology and pharmaceuticals, hotels, restaurants and leisure. According to Klich (2015), the company secured its funding worth $650.34 from different investors during the early growth stage. The market opportunity Sequoia Capital deals in several product and service portfolios hence numerous market opportunities. Software for business processes and mobile phones have a great opportunity in the market as the trend points towards that direction. There is also market opportunity for companies which develops product for online shopping, tourism and business analytics tools. Klich (2015) argued that since its establishment, Sequoia Capital has been contracted by Beijing Peak Technology to develop an online platform for evaluation and sale of the second hand cars. The company also made business analytics platform called aloom which is first of its kind (Klich 2015). The Target Market The company has a varied target, including hotels, hospitality companies, hospitals, computer and TV manufacturing companies and communication companies. The company develops website and platforms which shopping for events, holidays and wedding (Klich 2015). Sequoia Capital also manufactures pharmaceuticals which they sell to hospitals. In addition, the startup develops semiconductors which they sell to computer and TV manufacturing companies. Why customers are going to buy/use the product/services The customers are likely to buy the product because they enhance process such as shopping and event organization. Chathoth (2007, 397) reported that there is growth in international hotel and tourism industry and companies dealing in the sector aspire to improve their services through automation. Companies making Smart TV and computers are also going to buy the semiconductors because there is a considerable growth in TV sector signified by high sales in the recent years. How the company is going to make money The company is going to make money through B2B model. The company makes products which they sell to other companies to integrate into their products. For instance, semi-conductors can be sold to Dell, Acer, Lenovo and Apple. On the other hand, pharmaceutical can be sold to hospitals and pharmacies. Triangle Peak Partners Description of the business and the funding secured by the venture Triangle Peak Partners is a venture-capital backed startup business that was established in 2013 in Carmel, California (Klich 2015). The company operates in the technology sector and develops software. Klich (2015) opined that triangle Peak Partners has developed car-sharing platform which allows car proprietors to rent out their vehicle. The company also developed software for business analytics particularly one which evaluated prices for rental estate in different neighbors. The company secured funding worth $535 million from different investors in early stage (Klich 2015). The market opportunity Euromonitor (2013) pointed out that car rental has since become a marketable enterprise within the different cities due to increase of business activities and leisure. The California is one of the cities that are considered to be growing in terms of car rental needs. California has also grown in terms of real estate due to high population and economic growth. With more people moving to work and stay in the city, there has been changing prices in houses. Therefore, real estate owners and buyers have been in need of software of determining prices. The Target Market Triangle Peak Partners’ target market is middle class and the rich who lives in California. The target group has high disposable income to rent car for leisure or business activities in the city and beyond (Kotler & Armstrong 2014). California is one of the cities with high population of millionaires which prefers to buy properties. Why customers are going to buy/use the product/services More people and companies have since joined the car rental business due high population of tourism and students who come to the city (Euromonitor 2013). Therefore, there are likely to buy the software to efficiently manage their cars. The prices of the houses also keep in various neighbors within California hence great need to have a system that can evaluate and determine the price. Thus, the real estate developers are likely to buy software for the process. How the company is going to make money The company is going to make money through selling of software to car owners and real estate managers. The software can be paid daily, monthly, weekly or yearly. True Ventures Description of the business and the funding secured by the venture True Ventures was established in 2005 in California, US. Crunchbase described True Ventures as a venture capital Company based in a Silicon Valley-based which funds early-stage startups (Vrcek et al. 2016). The company provides financing to the talented entrepreneurs in market hence creating jobs. Also, True deals in healthcare systems, software and insurance. Vrcek et al. (2016) affirmed that during its early stages, the company gets funds worth $217 million from investors to run its operations. The market opportunity With the population increasing and new diseases emerging there is a great need for healthcare systems for research, treatment and recording keeping (Abdallah 2014 p.166). As such, True Ventures have the opportunity to capitalize and provide a solution to the problem. Software for various processes is the trendy product currently in the market. Developing new software or partnering with individual software developers is likely to improve True Ventures’ image and revenues. The Target Market The target market for True Ventures is hospitals and individuals. Vrcek et al. (2016) postulated that the company deals in products such as the healthcare system and insurance which used in hospitals. Another target market is individuals which high income. The company targets middle income earners with its Software and insurance products. People with high income can willingly pay for new software and insurance policies. Why customers are going to buy/use the product/services The customers are going to purchase the company product and services because they are of high quality. The company funds the most talented people to develop its products such as software and healthcare systems (Vrcek et al. 2016). How the company is going to make money The company gets its money by selling healthcare systems, insurance policies and software. True Ventures also make it money by getting share of the profits from the startups firms it funds. CrunchFund Description of the business and the funding secured by the venture CrunchFund is a venture capital company that is in its early stage. The company was formed in 2011 and has its headquarters in San Francisco (Klich 2015). The company operates in information technology field, but majorly on early and seed stage investments. In its early stages, the company secured funds from companies and investors. Crunchbase (2016) claimed that during its inauguration in 2011, CrunchFund, the company raised up a funding worth $27 million. Some of the investors who contributed towards funding include AOL, Marc Andreessen, Ron Conway, Austin Ventures, Accel Partners, Redpoint Ventures and Greylock Partners (Klich 2015). The market opportunity CrunchFund focuses mobile technology, information security, software, curated web, Bitcoin, SaaS and social networking (Crunchbase, 2016). Innovation in mobile technology provides new platform for competition. Consumer new looks for mobile phones with unique features include camera resolution, operating system, battery life, storage capacity and the speed of the browser. Similarly, with the many challenges of cyber attacks, CrunchFund finds the opportunity to develop innovative products which will eradicate the problem. The Target Market CrunchFund segments its market into two; individuals or companies. Furthermore the company segments its market based on age and income. Crunchbase (2016) posited that the company sells its product such as mobile technology, software, Bitcon, SaaS and social networking to either individual or companies with an interest in technology. Software like SaaS is often used by companies for management, accounting and information processing processes. On the other hand, the company target young adults in the age of 18 to 35 years. These target market contain people who were born in technology era and have a great interest in technological devices and social media (Wesolowski 2014, p.34). Why customers are going to buy/use the product/services Customers are going to buy CrunchFund services since the company makes products that solve some of the great problems such as cyber attacks. In addition, the customers are going to buy CrunchFund products because they improve operations and efficiency in firms. For Instance, SaaS software made by CrunchFund is used for accounting and supply chain management. How the company is going to make money The company is going is going to make money by sharing profits with startups they currently funds (Crunchbase 2016). The company currently invests in companies such as Airbnb, Uber, DigitalOcean, Cruise, Mesosphere, Path and Redfin among others (Crunchbase 2016). The company also fund individual entrepreneurs and gets a share of the profits if their products or projects grows. CrunchFund will also make money by selling Bitcon, SaaS, mobile technology and other software. Conclusion In the current competitive environment, companies are challenged to inculcate innovation and entrepreneurship culture to have a competitive advantage. With competition increasing, entrepreneurship field companies have devised a new way to tap new talents and draw them to their side. Companies now fund some of the startups which show potential for growth. The strategy not only increases companies’ revenues, but also improve their image particularly if the start up becomes a success. Some of the startups discussed in this paper have been funded through venture capital and have grown to support others too. As business environment becomes competitive in the 21st century, venture-capital will prove to be the new strategy in entrepreneurship field. References Abdallah, A 2014, Implementing quality initiatives in healthcare organizations: drivers and challenges, International Journal of Health Care Quality Assurance, vol.27, no.3, pp.166 – 181. AlAbdullah, A., Paivenen, P & Kline, A 2016, WhatsApp, Crunchbase. Braz, I., Fawkes, P & Bettenhauser, C 2016, Business Insider, Crunchbase. Brem, A 2011, Linking innovation and entrepreneurship; literature overview and introduction of a process-oriented framework, International Journal of Entrepreneurship and Innovation Management Vol.14, pp.6-15. Chathoth, P. 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