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A startup is a company which faces significant risk of its equity going to zero, which has also never had a period in which the risk of its equity going to zero
by maverick-iceman 5y ago
A startup is a company which faces significant risk of its equity going to zero, which has also never had a period in which the risk of its equity going to zero was negligible.
Tesla is still a startup, so is Rivian
Google is not a startup, Bank of America back in 2009 wasn't a startup although risk of equity going to zero was huge, but it had a darn long spell in which the risk was nonexistent.
- sandworm101 5y agoThere are a few startups where that definition needs some flexibility, specifically startups that are based on large assets. A farm might be a startup, even though its key underlying asset (land rights) really will never approach zero. It could still fail without ever getting into net zero equity.
- maverick-iceman 5y agoI mean equity market price, not equity book value. Equity market price embeds every information about the company.