A few weeks ago we saw what a startup was, its characteristics and the difference between these and SMEs. 

In this opportunity, we will talk about the different types of startups.

1. Scalable: Are possibly the most popular type among these businesses. They are characterized by having an idea that they can exploit at a low cost and reproduce it in different contexts. These startups are generally in the technology sector, since with modest resources they can reach the whole world and offer the same service everywhere. and offer the same service everywhere.
2. Social startups: While all startups aim to scale and grow in the global market, the reality is that many of these companies do not aim to make large profits, but rather to offer a quality service or product to as many consumers as possible. These startups are distinguished by focusing their attention on the scalability of a business model without considering a large volume of profits, despite the fact that the proposal must be profitable and generate the necessary resources for its survival and reproducibility. This type of startups are an example of how to do business with a focus on social responsibility.
3. Buyable startups: Many ideas arise with the goal of materializing into a real project and, generally, it is the creators of a business who hope to live the dream of owning a company and generating profits from it. However, there are some entrepreneurs whose sole purpose is to generate business ideas to be sold to other people. Buyable startups are business projects that seek to be attractive to a larger buyer or that prove to be profitable enough to convince someone to acquire it and integrate it into their organization.
4. Primary startups: As opposed to buyable startups, primary startups can be defined as. those that arise from an interest on the part of the developer, entrepreneurs and investors as a life project. These companies do not seek to be bought by other companies, but to consolidate themselves in the market and have their own identity. These startups are also known as passionate or lifestyle startups. This is because they arise from an emotional interest or the search for a solution to an everyday problem. This passion is transformed into a business idea that can be useful to thousands or millions of people.
5. Secondary startups: A third type of startup that has to do with who creates it and its objective are secondary startups. These business units are characterized by not being the main project of a company, but act as laboratories of ideas. Some developers work in them or even compete for the generation of innovative platforms, solutions or software that can be injected with capital if they prove their usefulness. Large companies are constantly funding such startups in order to adopt their solutions as soon as their profitability becomes evident. Therefore, they do not arise from an interest on the part of their creators, but as a service to other entrepreneurs.

More and more entrepreneurs are joining the startup ecosystem, where the focus is on innovation. innovationand we can also find startups dedicated to many different things, always with the technological component that characterizes them.

For more than three years, at Fynsa AGF we have been meeting with more than 80 Latin American startups.t Fynsa AGF we have met with more than 80 Latin American startups, with whom we have developed different debt-for-asset financing strategies.

If you are interested in learning more about these alternatives, you can write to us at [email protected]

Fynsa Private Debt Team