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A start-up isn't somebody making money on the Internet, or somebody using e-commerce. It is a technology company founded by a small group of people that, were i
by frossie 18y ago
A start-up isn't somebody making money on the Internet, or somebody using e-commerce. It is a technology company founded by a small group of people that, were its technological product prove popular, presents an opportunity for spectacular growth.
It is the potential huge return that makes start-ups of interests to VCs (and if you believe PG's thesis, of potential large economic impact). If I had an Internet business idea that would make me $250,000 for life guaranteed but fixed, that's a great business idea for me - but not for an investor.
- kragen 18y agoYeah, if you use an unduly narrow definition of "start-up", you can get some small number in the few thousands. But if you use a more normal definition (like the one at the top of http://en.wikipedia.org/wiki/Startup_company http://en.wikipedia.org/wiki/Startup_company — “A startup company or start-up is a company with a limited operating history. These companies, generally newly created, are in a phase of development and research for markets,” or my usual rule of thumb, “A startup is a company that has not yet become profitable,”) you get a much larger number, perhaps in the millions.