Definition of a Startup
January 16th, 2008 | Categories: financing, launch, marketing, markets, networks, social media, strategy, trends, wikisYesterday’s post brought up an interesting topic. What is the definition of a “startup”? In other words, when does a startup progress to a “company”?
Is it defined by:
- Time? i.e. Less than a year old?
- Revenues? i.e. Under $10 million in revenues?
- Profitability? (Self explanatory)
- Traffic? i.e. Less than 20 million page views per month?
- Staff size? i.e. Staff size smaller than 50?
This topic is particularly interesting because many believe Flickr, Facebook, MySpace, YouTube, etc… are still startups. I don’t believe so. Facebook, for example, has:
- Been around for 4 years
- Revenues in the hundreds of millions
- Billions of page views per month
- A staff of a couple hundred
Can you still consider it a startup? I’m not convinced…
On an ambiguous note, Wikipedia defines a startup as “a business with a limited operating history”. So basically, I’m no further ahead than when I first visited Wikipedia.
I’ve been thinking about a term to use to describe the aforementioned boundary or limit. I’m not certain whether a given term exists or not, so I’m going to coin one anyways. The startup threshold will now be known as the point when a business transitions from the startup phase to a full-blown company. The exact metric or number has yet to be established, but I’d like to get feedback from readers.
How do you think a startup should be defined? What number(s) do you think are most important? What would you consider the startup threshold?