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“Startup” implies VC-backed company.

And VC’s invest in companies to get a 100x return.

Which almost by definition means, if you run a startup - you need to get it to become a unicorn for it to be successful.

Otherwise, why take VC money … and just bootstrap it instead.



I think there are two common definitions of startup, and neither require VCs to be involved.

One (seen elsewhere in these comments) is any small business. I personally don't like that definition because there is a pretty big difference between a local coffee shop and the thing we all mean when we say "startup".

The other one which is more common here is a company that is currently small, but the business model involves getting much much larger. There's a blurry line between a small business and a startup with this definition, but it seems to be a "you know it when you see it" type of thing.

Companies like Mailchimp and Atlassian (in their early days) clearly qualified as startups even though they hadn't raised VC. You might say they're outliers, but so are the VC-backed companies that reach that level of success. If a small company is growing quickly and on pace to become a multi-billion dollar company, it seems weird to say they're not a startup just because they didn't raise money from the right people.


>Companies like Mailchimp and Atlassian (in their early days) clearly qualified as startups even though they hadn't raised VC.

Even the Paul Graham essay defining "startups" the way he saw it said "VC funding" wasn't required: https://www.paulgraham.com/growth.html

It's just that many mentally associate "startups" with VCs and software tech because that's often how rocket-ship growth happens.


I’m by no means an expert on this, but I never assumed “startup” implies VC-backed. I thought “VC-backed startup” meant that and “bootstrapped startup” meant not.

That “startup” was an indicator of not being an incumbent in the space and using technology to disrupt things.

But in an increasingly tech-first world, it does beg the question what separates a tech first SMB from a startup.


Most venture capital is invested into companies with traditional business models, not extreme growth ventures.

Most startups are still traditional business model. Every company was once a startup.

My local supermarket was funded by the people living in the community, each buying a few shares. I don't think any of them expected 100x return.


> Every company was once a startup.

I disagree.

Would you consider your neighborhood restaurant a "startup".

Startup for many people implies "high growth".


> Would you consider your neighborhood restaurant a "startup".

Of course, they started at one point, didn't they?


My 8-year child will be excited to know their lemonade stand is a "startup".

I'll have to put that on their college application form as an achievement.




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