What Is An Online Startup? Introduction, Types & Funding

An online startup is a disruptive business model that works on new innovative ideas.

Types of Online Business Startups: Startups are born from disruptive innovations so they mostly create new categories, new market and value network; eventually disrupting an existing market and displacing established markets & alliances. To make it easy for you, online startups are categorized into:

  1. Media & Publishing startups like WordPress & Tumblr
  2. Social & Networking startups like Pinterest & Instagram
  3. eCommerce & eShopping startups like Amazon & eBay
  4. Online Tools, Utilities & Web-services startups like Free SMS, Payment getway providers and taxi, private hire, ridesharing apps etc

Essential Features of an Startup includes:

  1. Continuity, Profit, Growth & Expansion
  2. Better dealings in products & services
  3. Better production & exchange methods
  4. Possibility of incurring loss & Risk Element

Investment & Funding: Many online startups are initially funded by founders themselves. Other unique funding options include venture capital firms, angel investors, exchanging seed money, factoring finance and crowdfunding like Indiegogo.com & Kickstarter.com.


Online advertising agencies like Google Adsense etc can also help you in this regard, but only when your website starts to receive a nice amount of traffic.

Continue your reading to Essential products to startup online.

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