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The Silicon Valley definition of startup is "company designed to grow fast"[1]. It's perfectly OK to use a different definition, and it's perfectly admirable to
by paulsutter 9y ago
The Silicon Valley definition of startup is "company designed to grow fast"[1]. It's perfectly OK to use a different definition, and it's perfectly admirable to start a company with a different goal. If so, you should ignore all the advice about raising VC money because you really don't want to do that if growth is not your central goal.
[1] http://www.paulgraham.com/growth.html http://www.paulgraham.com/growth.html
"There's a distinct word, "startup," for companies designed to grow fast. If all companies were essentially similar, but some through luck or the efforts of their founders ended up growing very fast, we wouldn't need a separate word. We could just talk about super-successful companies and less successful ones. But in fact startups do have a different sort of DNA from other businesses. Google is not just a barbershop whose founders were unusually lucky and hard-working. Google was different from the beginning."
- jacquesm 9y ago> The Silicon Valley definition of startup is "company designed to grow fast"[1]. No, that's the Paul Graham definition.
- SkyMarshal 9y agoIt's also the Steve Blank definition. https://steveblank.com/2010/01/25/whats-a-startup-first-principles/ https://steveblank.com/2010/01/25/whats-a-startup-first-prin...
- wpietri 9y agoThat is definitely not Steve Blank's definition. His is: "an organization formed to search for a repeatable and scalable business model." You can have a rapidly growing company with an old business model. Look at McDonald's, for example. The business model, selling hamburgers, wasn't particularly different. But they took great advantage of the rise of car culture and TV advertising. Or look at the Android phone market. Selling phones is a pretty well understood business model, but companies there have grown rapidly by continual incremental improvement.
- paulsutter 9y agoRepeatable and scalable sound like ingredients for fast growth. To demonstrate that Steve Blanks definition is materially different from Paul Graham's, perhaps you could name a few successful startups which found a scalable/repeatable business model, but that were not designed to grow fast?
- wpietri 9y agoSeriously? I already demonstrated that it was materially different by showing that some-fast growing companies were not formed to search for business models. All successful startups grow fast, because that's how we define business success. Not all fast-growing companies are startups, though.
- paulsutter 9y agoOk great, Steve Blank excludes companies that already have a scalable repeatable model? Somehow I doubt that's his intention EDIT: Most ecommerce startups would fall into your "proven business model" category, and yet they, like McDonalds before them, do extensive experimentation to find the path to rapid growth. Which is why Steve Blank underscores that the search is never finished.
- wpietri 9y agoNot quite. His definition is about what the organization was formed to do. If a company was formed to search for a scalable, repeatable business model, then he's still interested in it when they have found it. Then they're in the growth stage. But if a company was formed, as most companies are, intending to use a proven business model, then it's not in his definition of a startup. No matter how fast it grows.
- throwawayknecht 9y ago> But if a company was formed, as most companies are, intending to use a proven business model, then it's not in his definition of a startup. This would seem to exclude virtually all delivery service, cleaning service, car service, etc. companies, which are usually considered the prototypical SV startups.
- jacquesm 9y agoDo you honestly believe nobody used the term 'start-up' before Steve Blank or Paul Graham used it? https://www.merriam-webster.com/dictionary/start-up https://www.merriam-webster.com/dictionary/start-up "A Fledgling Business Enterprise" That's exactly what it means, no more, no less. Keep in mind that outside of the HN crowd absolutely nobody would know who either Steve Blank of Paul Graham are and neither of them get to redefine the English language.
- paulsutter 9y agoNobody suggested they originated the term. Paul Graham's definition for "startup" is exactly right for Silicon Valley, and the Merriam Webster definition is incorrect, for Silicon Valley. It's true that lots of people use the word startup to mean fledgling business, and that's perfectly OK and cool, but if you use the term "startup", in Silicon Valley, to refer to a lifestyle business, people will view it as self-aggrandizement or delusion. This is also true in any venture capital context anywhere in the world.
- SkyMarshal 9y ago>Do you honestly believe nobody used the term 'start-up' before Steve Blank or Paul Graham used it? Did I say that somewhere or are you just straw manning me? My post and paulsutter's are clearly referring to the Silicon Valley idea of a startup, not the general idea. The difference is one of intent, so it is useful to distinguish between the two. Someone who opens a diner or a watch repair shop or a Kinko's franchise with the intent of servicing their locale is certainly doing "a fledgling business enterprise" and thus may technically be doing a startup. But SV is specifically interested in greenfield endeavors that can leverage the web or other new tech to find a large customer base and rapidly scale to billion dollar+ valuations. Given your long history on HN I know you know this so why are we bickering over semantics?
- jmilloy 9y agoThis is only a useful comment if it includes an alternative (and also widely used) definition, or at least a critique of the definition provided. In fact, the wikipedia article on startups includes the grow fast component, suggesting to me that that is the most common usage: > "an entrepreneurial venture which is typically a newly emerged, fast-growing business that aims to meet a marketplace need by developing a viable business model around an innovative product, service, process or a platform. A startup is usually a company designed to effectively develop and validate a scalable business model."