Today startups are a hot thing. Everyone is founding company x or y and the media makes it seem as if there is another Instagram every other week. However, this is not the case and Instagram is the exception and not the rule. The startup infrastructure is a complex system to navigate but successful navigation results in potentially lucrative and/or celebrity status.
Most people think startups are a simple thing: have a great idea, and if you build it and have a good enough an idea users will come flocking to the product. However in between the bottom layer of having a great idea and the top layer of having users flocking to use your product is a complex process that can take years to navigate and reach the top layer. We can refer to this complex process between the bottom layer and the top layer as the middleware of a startup.
Once you have an idea people just think that you should go build it. But that’s an enormous waste of time because how do you know if people want it to begin with and how do you know you are building a product that will ultimately generate revenue and profit. Once you know that people want the product or service and that it has the potential to start generating revenue, you have to put together the team, a business model for potential investors, and actually start to build the project. Now these sound like simple things but take an enormous amount of time, energy, and determination to accomplish. Once the product is built you have to acquire users and continue product iterations and updates. Incorporating a startup sounds like a simple process right? But how do you know if you want a C-Corp or an S-Corp? Or should you incorporate in your State or in Delaware where taxes are lower? These all seem like simple questions, but are not as straight forward as they actually seem.
The middleware of creating a successful startup is a complex process that is very difficult to navigate. The middleware of starting a startup is constantly changing based on the time period. For example, 15 years ago a technology startup would need to raise millions of dollars just to pay for the server space of their application, something that a startup does not need to do today. Furthermore, because the startup infrastructure is comprised of humans, perhaps the most vital component of the startup infrastructure, it is changing based on the people who are involved in the system. Being able to manage and navigate the middleware that comprises the startup infrastructure determines whether a startup will succeed or fail.