Startup Definition

A startup is a young company founded by one or more individuals that are in the process of developing a unique service or product.

Startups are typically in the early stage of development with often a focus on innovation and an aim for hyper or rapid growth.

They are often high-risk ventures trying to disrupt their respective verticals or industries.

Startups usually start bootstrapped but can rely heavily on outside funding from angel investors or venture capital to dominate their market and to scale quickly.

Despite a 90% failure rate in the first couple of years, it still seems for many people a viable path to claim fame and freedom and possibly earn unicorn status.

Key Differences Between Startups and Small Businesses

  • Startups focus on hyper-growth, whilst small businesses aim for a more boring but steady growth with consistency in mind.
  • One seeks market dominance, whilst the other one serves more of a local community
  • Startups rely on exits through acquisition or IPO whilst small companies prefer to maintain control