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I get what you are saying but I don't agree with your pigeonholing of the definition of "startup". I really don't think all startups are high growth at all. I t
by optimuspaul 8y ago
I get what you are saying but I don't agree with your pigeonholing of the definition of "startup". I really don't think all startups are high growth at all. I think that high growth startups are definitely a niche, but I don't think that they are what define startups and startup culture.
- sonnyblarney 8y agoEven though I see where you are coming from, my view is a little bit more reality based: startup culture is very intertwined with VC and such kinds of investment - and 'by the numbers' - they must be high growth. Put another way - there is so, so much risk with VC (and such) investment - that the kind of 'regular to medium growth' businesses are actually economic failures for most VC's. So imagine you have a 'startup' that you grew over 10 years to 100 employees and profitability - even if you made your investors 'some return' - it actually may not be enough return to justify the implicit risk. So when you adjust for risk ... it's actually not a win. This is something that a lot of founders struggle with understanding. Anyhow - so my view is - startup = high growth as a matter of pragmatism. But yes, bootstrapped, mid-growth tech companies don't really fit with the 'small business' profile (aka contractors, cafes) as well so you have a point either way.
- gamblor956 8y ago"Startup culture" is entwined with VC culture because the notion of businesses wanting to remain in an unprofitable state in perpetuity (i.e., in perpetual "startup state") was unheard of in the past. Most businesses try to move past the startup phase in their first few months or weeks of operation.