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Ask HN: What is Not a startup?
Is a game development shop a startup? Is a pillow store a startup? are web development firms startups too? It seems everyone is labeling themselves as one. What types of companies should or shouldn't be called a startup?
- alex1 17y agoI think a "startup" is an innovative company that has existed for a short period of time. If it's software, it's probably still in beta. A startup is probably in early research and development stages. A startup is probably looking for some outside funding and the founders have some exit strategy in mind (Acquisition or IPO). A pillow store is none of the above things so it's most probably not considered a startup. A game development shop can be a startup if it meets some or all of these things. Web development firms can be startups when they make web applications for the public or businesses to use (like 37signals). Just my 2 cents.
- tyrelb 17y agoAt startup has these characteristics (only): 1. Is a business that makes money. 2. See point 1. above Everything else is considered either art (as in artist) or hobby. Examples of non-startups: 1. A iPhone developer with 1 app, no revenue 2. A web development shop with no customers - or no significant growth potential (that's a hobby). Especially if you work for someone else. 3. You make no money - this is a "non-profit organization" or "charity" - or a "research institute". You often have to do other jobs on the side to eat, live. Example of a startup: 37 signals build software for internal purposes (eg: Basecamp). This would initially lead you to believe this is a not a startup, but then the started charging for it on a mass level, providing good for other people, etc. This is a startup. Once you mature the revenue, you are no longer a startup.
- alex1 17y agoWhat do you mean by a "business that makes money"? A lot of startups operate at a loss for their first year or two. I think more often than not, instead of a young startup having positive net income, they either have (a) some kind of funding, seed, angel, or VC, or (b) they have some great revenue generation opportunities they can take advantage of (which would also up their valuation).
- tyrelb 17y agoCorrect - losses during the startup period are good so as long as the revenue potential down the line is there.
- pg 17y agoA startup is a business designed to scale dramatically. That excludes most individual retail stores and service businesses.
- twidlit 17y agoMy definition of a startup is a company that exist in a new and fairly volatile vertical. Startups are primarily defined by an innovative product, service or business model with an emphasis on scalability.
- dnsworks 17y agoA start-up is any business that some douche-bag VC doesn't call a "lifestyle business".