What's a Startup?

2014-05-06 09:10:11 admin Startups 0 Comments

Since BuiltinPerl launched, we received a variety of startup submissions ranging from education and health services to search engines and games. However, the diverse nature of startup submissions made us take another look at the meaning of the word “startup” and how it may be perceived by our community. 
Some say that being a startup is a state of mind, a certain organizational culture; but, a business cannot be called a startup forever. 

So what is really the definition of a startup? And what does it take for a startup to leave the "startupsphere"?

We asked around and we've heard (and read) many reasonable opinions defining a startup based on some or more of the following criteria: number of employees, less than n years old, revenue generated, profit, self-sustaining, "exit" events (merger, acquisition, IPO), business model found, etc. The issue with the aforementioned metrics is that they can't always be known or measured. 

So, here is a simple set of characteristics to define a startup, which we can all agree upon:

  • "Not every newly founded company is a startup."
  • A startup is a business designed for growth, in search of a repeatable, highly scalable business model. "The only essential thing is growth. Everything else we associate with startups follows from growth."
  • A startup may stop referring to itself as a "startup" company once they found and validated the scalable business model or once they passed the rapid growth period.

(Quotes by Paul Graham)

Applying this simple definition to the startups listed on BuiltinPerl, we want to create a new category to accommodate businesses who believe they passed the startup phase. The "Startups" category will still be maintained, but some of the current listings may be moved into the new category.   

We're still brainstorming for a name for this new category. If you have a suggestion, we’d love to get your thoughts, so, be sure to leave a comment below!

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