Brand names are important for startups

domainking131

Forum Leader
Staff member
This may seem like it should be obvious to people who operate startup businesses, but brand names are important. This is especially true for startups that are seeking outside funding to grow their business. Not only does this seem intuitive, but there is a study that shows the importance of choosing a brand name.

According to an article on Business Insider:

"As if having an awesome product isn’t hard enough: A study published in the peer-reviewed academic journal Venture Capital has found that a startup’s name can seriously affect how a company is perceived by investors.

Names are are easily pronounced, such as Uber and Lyft, are preferred by both early and late stage investors. They tend to be offered more money, whether its through crowd funders, angel investors, VCs or IPO investors.

Uniqueness is also virtue, but only with early-stage investors. The study found that since very little is known about a company in the early stages, unique names give the impression there is something special about the company.
"


Read the complete article here
 

Kimla

Member
This is an interesting article. I have always been aware of the fact that the name of a brand and/or business is important. However, I never realize how important it was.
 
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