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Define a startup
- brudgers 10y agoIn popular culture every new business is often called a "startup". Yet to me, the key feature defining a startup in the "Silicon Valley sense" is a capital structure optimized for: 1. growth of equity value as the primary "payday" for the founders 2. receiving investment in exchange for equity based on a similar "payday" for the investors 3. non-linear growth of equity value. Technology tends to facilitate this organizational optimization, but it can also facilitate business optimized for the generation of regular cash returns to investors.