What does Startup mean?

Startup is the name given to  innovative companies with rapid growth  and whose business models can be replicated.

A startup’s business model is based on innovation, and  one of the main objectives is to grow at a rapid rate  , conquering the market through the creation of a product or service.

The startup concept is also related to the existence of the company, indicating a relatively recent company. There is no specified time limit for a company to stop being considered a startup, and according to some authors, a company with 5 years of existence can still be classified as such.

Not all newly created small businesses are startups, because this type of company is designed to achieve rapid growth. To this end, methodologies such as growth piracy are adopted   , which aim to encourage the company to grow quickly and sustainably.

This term (which in English means to start something) appeared in the 1990s, when technology companies developed thanks to the Internet bubble. Some of the best-known startups are: Über, Airbnb, Dropbox, Snapchat, Pinterest, Spotify.

When does a company stop being considered a startup?

There are no clear and objective metrics that define what a startup is and when it no longer has this designation. Despite this, some authors indicate that it is no longer considered a startup when:

  • achieves great growth and expands (has more than one office);
  • achieves high income and profit;
  • it has a large number of hired employees (more than 80);
  • it is bought by a bigger company.