Defining a startup...

**KyleXY** · 07-12-2010 07:54 PM

I'm interested in everyone's opinion on what their definition of a startup is. Many would consider Facebook today, still a startup. I can't say I agree but several sources do view it that way.

For me, a startup is a newly formed company and is an early stage growing company. When I think of startup, I typically think of a company with less than 50 employees and is still growing. While Facebook certainly still fits the growing part of my definition and it isn't public or anything of that nature, it's hard to consider a company with over $700M in funding and several hundreds to thousands of employees doing over $1B in revenue to be considered a startup by any measure (personal opinion of course).

So with that said, I'd like to hear the YE community's thoughts on what their own definition of a startup is. This is purely for fun of course.

**akula** · 07-12-2010 09:05 PM

ahhhh....the definitions I go by are the same ones used by venture capitalists.
so for example, according to NVCA's survey, in Q1 2010 there were; 78 Startup/Seed, 221 Early Stage, 224 Expansion and 158 Later Stage deals completed
what counts a deal as either a "Startup/Seed" rather than "Early Stage" for statistical purposes?
it's the funding sequence...if the firm has taken money before from institutional investors, for NVCA purposes, it's not a startup anymore, it's counted as "Early Stage".
from my perspective, for everyone to be on the same page, I think these definitions are sufficient.
they might not be "right" or "wrong"...but nontheless they are sufficient for the sake of definitions

**youternmark** · 07-14-2010 10:22 AM

Great timing...ReadWriteWeb just did an interesting blog on this subject. Not allowed to post a link here, but google 'How Do You Define "Startup"' and you'll find it with no problem. Be sure to read through to the comments for insights and variations.

**KyleXY** · 07-14-2010 07:24 PM

Just read the post but it didn't give a definition.

**Prova** · 07-21-2010 02:15 PM

Hi,

I'd define it as a company that's just starting. A company that's in the early growing stages. 1-2 years old (They say it takes 2 years to make a profit). I suppose it could stretch out longer than 2 years if the company is starting real slow. Once a company has hit that point where they're "successful" or "working" it would be hard to label them a startup, for me. There's no way I would call Facebook a startup. They're well past the starting phase & on to the growing phase.

Those are my thoughts, but are probably different from the mass, if they think FB is still a startup.

-David

**generationy** · 08-19-2010 07:24 PM

Hey great question man! For me, a startup is any business that hasn't reach profitability and is currently developing its products or services. Soon after it reaches its break-even point, its basically like any other business. Startups, if you break it down, is any business that has just "started UP" and is going through a growth phase. Right?

Hope that helps. Interesting questions!