While explaining a term, i found that i had to explain the meaning of the term startups before proceeding. So, what is a startup? What is the startup definition?
I will try to explain in short concise sentences. Will provide comparison to make sure you get the difference between a startup and other type of tech businesses.
I am ranking from highest to lowest priority, as sometimes the lines might get blurred, rendering differentiation harder.
1- Startups are tech focused. They offer a tech focused solution to a problem, or a tech focused answer to a need.
2- Startups are usually global solutions. They might be launched in a city /country, but end goal is almost always national or international.
3- They grow very fast. When you need to reach a wide market, hence you need to grow fast before competition come into play.
4- Startups usually focus on an innovative approach, or innovative solutions.
5- They are young companies. Tech companies older than 5-6 year, in essence might no longer be considered startup.
From these points, we understand that the average startup is a young tech company offering a tech service for the wide public with international domination as a goal.
Let’s end this with some examples. To make sure the startup definition is well understood. To make sure you would be able to answer the question “what is a startup?” if asked.
|Google/Facebook/Twitter/Amazon/Uber||Not startups. Already old company.|
|An Uber competitor launched a year ago||Yes a startup.|
|An application to order food launched 4 years ago||Yes a startup.|
|An application belonging to fast food restaurant||Not a startup, it is a communication tool.|
|A company that installs computer programs||Not a startup, a service company.|