What is a Startup?
The term ‘startup’ usually refers to a technology or technology-enabled company. Typically, these companies are newly-formed businesses that are in the stage of figuring out how it will repeatably make money. It is important to note that most startups are small businesses (which refer to a company’s size and revenue). But not all small businesses are startups. Startups are or have intentions to become high-growth and scalable companies. For example, a new catering company may be considered a small business and not a startup. This is because the company’s growth is directly tied to its ability to handle demand. A catering company with 3 employees may not be able to service more than 10 events per day. Their ability to handle demand is directly tied to its number of employees. A counter example is a new mobile gaming company with 3 employees. The cost to make a mobile game will cost the same whether 1 person or 1 million people download the app.