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A startup and a business aren't the same thing in the eyes of YC. https://www.paulgraham.com/growth.html https://www.paulgraham.com/growth.html A business is

by s_dev 11d ago

A startup and a business aren't the same thing in the eyes of YC. https://www.paulgraham.com/growth.html https://www.paulgraham.com/growth.html A business is web store selling coffee cups where the bottom line governs it's continuation. A startup is ambitious project where a growth rate governs it's continuation. The end result of a business is a lemonade stand or a barber or donut shop, the end result of a startup is OpenAI or Google.

quirkot 11d ago
a business makes money selling a product or service. a startup makes money selling the startup
- podocarp 10d ago
  That's a good way of putting it But this is also the set of incentives that produces spaghetti code because "we're gonna get acquired in two years"
  - quirkot 10d ago
    it's also the set of incentives that produces not-technically-illegal pump and dump schemes when the startup is sold to the market via IPO
falsemyrmidon 11d ago
> The end result of a business is a lemonade stand or a barber or donut shop, the end result of a startup is OpenAI or Google. That's a bit disingenuous. The more comparable end result for a coffee shop is Starbucks. Or Amazon if you want to talk about books
- s_dev 11d ago
  pg would argue Starbucks the Umbrella group is startup as it's an franchise operation focussed on growth. A single instance of Starbucks is a business focussed on turning a profit. In fact even the name YC is YCombinator, which in programming is a "function that produces functions" and YC is supposed to be a startup that produces startups. Here Starbucks (Umbrella) is a startup that produces coffee shops (Starbucks). You can define startup or business however you like it's not a legally protected term. Just around these parts that's what it means and I personally find the distinction useful when reasoning about what does and doesn't have high growth potential.
iwontberude 11d ago
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by s_dev 11d ago

quirkot 11d ago

a business makes money selling a product or service. a startup makes money selling the startup

podocarp 10d ago
That's a good way of putting it But this is also the set of incentives that produces spaghetti code because "we're gonna get acquired in two years"
- quirkot 10d ago
  it's also the set of incentives that produces not-technically-illegal pump and dump schemes when the startup is sold to the market via IPO

falsemyrmidon 11d ago

> The end result of a business is a lemonade stand or a barber or donut shop, the end result of a startup is OpenAI or Google. That's a bit disingenuous. The more comparable end result for a coffee shop is Starbucks. Or Amazon if you want to talk about books

s_dev 11d ago
pg would argue Starbucks the Umbrella group is startup as it's an franchise operation focussed on growth. A single instance of Starbucks is a business focussed on turning a profit. In fact even the name YC is YCombinator, which in programming is a "function that produces functions" and YC is supposed to be a startup that produces startups. Here Starbucks (Umbrella) is a startup that produces coffee shops (Starbucks). You can define startup or business however you like it's not a legally protected term. Just around these parts that's what it means and I personally find the distinction useful when reasoning about what does and doesn't have high growth potential.

iwontberude 11d ago

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