- It gets funded – no, can’t be because vast majority of them get seed funding.
- It gets customers – no, that can’t be it either
- It gets revenues – no, because customers could be paying for the service
- It becomes profitable – no, because even profitable companies are sometimes called startups.
So it was something that had been bothering me for a while. I have asked others but never got a satisfactory answer. Then couple of weeks back I attended the simulcast of Lean Startup held in San Francisco – beamed to the Microsoft offices in Cambridge. There I heard the definition of a startup from Steve Blank which makes a whole lot of sense – “Startup is a temporary organization designed to search for a scalable and repeatable business model“. That to me gives a very easy criteria to determine when a startup stops being one.
Thoughts? Kindly share your thoughts via comments.
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