What is the different between a Starup and a Normal Company ?

[James Viker]

What is the different between a Starup and a Normal Company ?
What's your opinion ?

 

[Adieu]

What is the different between a Starup and a Normal Company ?
What's your opinion ?

One just started and the other one didn't?

 

[Carlos X]

What is the different between a Starup and a Normal Company ?
What's your opinion ?

There are many meanings for it. Many people have different ideas of what it is...

For me, a startup is two factors: They just started their company 2 to 5 years ago. This is normally a company that is in the idea stage of the company's concept. The startup graduates to a "growing company" when the company is firmly established, with revenue, a strong team, and whatnot.

Wikipedia's definition of 'startup' is as follows...

"A startup company (startup or start-up) is an entrepreneurial venture which is typically a newly emerged, fast-growing business that aims to meet a marketplace need by developing or offering an innovative product, process or service. A startup is usually a company such as a small business, a partnership or an organization designed to rapidly develop scalable business model."

To put this in perspective, Facebook was a startup as "The Facebook." The company's operations were right inside Harvard's dorm rooms. To put it another way: Apple's origins was in a garage. Those were startups.

The Small Business Administration (SBA) sees "Small Business" companies, "partnership" companies as startups because of the legality of the structure. A sole proprietor is at the bottom of this exact totem pole; it's the lowest denominator of the classification of a "startup."

A corporation isn't a corporation until it's strong enough. It's still a startup until it's completely stable. Everyone sees you as a startup until you've successfully graduated from the whole "get to market" scale.

 

[Cosmic]

Usually a startup will rely primarily on funds from investors, while non-startups receive income from customers.

 

[Carlos X]

Usually a startup will rely primarily on funds from investors, while non-startups receive income from customers.

BOTH can do either. It's the legal structure you need to worry about.

LLC's and LLP's are usually "self-funded," managed by their own employes/officers, and gain profits from customers.
Corporations are funded by investors, managed by C.E.O's/Execs., and gain profits from customers.
Sole Proprietors are usually "self-funded," and gain profits from customers, but is taxed as an individual.

A non-profit can be seen as a company or corporation.

 

[Cosmic]

Usually a startup will rely primarily on funds from investors, while non-startups receive income from customers.

BOTH can do either. It's the legal structure you need to worry about.

LLC's and LLP's are usually "self-funded," managed by their own employes/officers, and gain profits from customers.
Corporations are funded by investors, managed by C.E.O's/Execs., and gain profits from customers.
Sole Proprietors are usually "self-funded," and gain profits from customers, but is taxed as an individual.

A non-profit can be seen as a company or corporation.

Legal entity type is pretty much irrelevant as to whether a company is a "startup" or not. Both LLCs and corporations have their own mechanisms for allocating ownership to investors. Most companies that plan to IPO file as a Corporation though, so they don't have to restructure before they go public. I own an LLC, so I think I know about this stuff. 😛

 

[Carlos X]

Usually a startup will rely primarily on funds from investors, while non-startups receive income from customers.

BOTH can do either. It's the legal structure you need to worry about.

LLC's and LLP's are usually "self-funded," managed by their own employes/officers, and gain profits from customers.
Corporations are funded by investors, managed by C.E.O's/Execs., and gain profits from customers.
Sole Proprietors are usually "self-funded," and gain profits from customers, but is taxed as an individual.

A non-profit can be seen as a company or corporation.

Legal entity type is pretty much irrelevant as to whether a company is a "startup" or not. Both LLCs and corporations have their own mechanisms for allocating ownership to investors. Most companies that plan to IPO file as a Corporation though, so they don't have to restructure before they go public. I own an LLC, so I think I know about this stuff. 😛

*facepalm* Okay, let's do a google search on this on since I already wikipedia'd this already. Hasn't even swayed you...

I think that we can instead rely on the 50, 100 or 500 rule, which I just made up. Here’s the term sheet: If your company has, or is any of the following, you have to hang up your Startup Uniform, and realize that you are just another technology company either hunting for or actively avoiding an IPO:

• $50 million revenue run rate (forward 12 months);
• 100 or more employees;
• Worth more than $500 million, on paper or otherwise.

That is from search query on Google on Page 1, Rank #4 for the keyword "What is a startup?". And this is a reliable source: TechCrunch. Techcrunch runs the Startup Battlefield, which is a startup event meant to connect startups with either investors or acquirers. Microsoft acquired Twitch-competitor called Beam Interactive.

I am a C.E.O. of a startup, even though it's a corporation. Why? I haven't met any one of the above criterias. Until then, I am not leaving the startup "label."

But yes, you're right, most companies that plan to go IPO, set up as a corporation structure so they don't have to restructure later, like you LLC's do.

 

[Cosmic]

Usually a startup will rely primarily on funds from investors, while non-startups receive income from customers.

BOTH can do either. It's the legal structure you need to worry about.

LLC's and LLP's are usually "self-funded," managed by their own employes/officers, and gain profits from customers.
Corporations are funded by investors, managed by C.E.O's/Execs., and gain profits from customers.
Sole Proprietors are usually "self-funded," and gain profits from customers, but is taxed as an individual.

A non-profit can be seen as a company or corporation.

Legal entity type is pretty much irrelevant as to whether a company is a "startup" or not. Both LLCs and corporations have their own mechanisms for allocating ownership to investors. Most companies that plan to IPO file as a Corporation though, so they don't have to restructure before they go public. I own an LLC, so I think I know about this stuff. 😛

*facepalm* Okay, let's do a google search on this on since I already wikipedia'd this already. Hasn't even swayed you...

I think that we can instead rely on the 50, 100 or 500 rule, which I just made up. Here’s the term sheet: If your company has, or is any of the following, you have to hang up your Startup Uniform, and realize that you are just another technology company either hunting for or actively avoiding an IPO:

• $50 million revenue run rate (forward 12 months);
• 100 or more employees;
• Worth more than $500 million, on paper or otherwise.

That is from search query on Google on Page 1, Rank #4 for the keyword "What is a startup?". And this is a reliable source: TechCrunch. Techcrunch runs the Startup Battlefield, which is a startup event meant to connect startups with either investors or acquirers. Microsoft acquired Twitch-competitor called Beam Interactive.

I am a C.E.O. of a startup, even though it's a corporation. Why? I haven't met any one of the above criterias. Until then, I am not leaving the startup "label."

But yes, you're right, most companies that plan to go IPO, set up as a corporation structure so they don't have to restructure later, like you LLC's do.

Chill out, dude. It's just a word, you can define it however you want to define it, and so can I. You can go off and quote a dictionary if you want to but it doesn't really matter. The term "Start up" means so many different things to so many different people.

 

[Carlos X]

Usually a startup will rely primarily on funds from investors, while non-startups receive income from customers.

BOTH can do either. It's the legal structure you need to worry about.

LLC's and LLP's are usually "self-funded," managed by their own employes/officers, and gain profits from customers.
Corporations are funded by investors, managed by C.E.O's/Execs., and gain profits from customers.
Sole Proprietors are usually "self-funded," and gain profits from customers, but is taxed as an individual.

A non-profit can be seen as a company or corporation.

Legal entity type is pretty much irrelevant as to whether a company is a "startup" or not. Both LLCs and corporations have their own mechanisms for allocating ownership to investors. Most companies that plan to IPO file as a Corporation though, so they don't have to restructure before they go public. I own an LLC, so I think I know about this stuff. 😛

*facepalm* Okay, let's do a google search on this on since I already wikipedia'd this already. Hasn't even swayed you...

I think that we can instead rely on the 50, 100 or 500 rule, which I just made up. Here’s the term sheet: If your company has, or is any of the following, you have to hang up your Startup Uniform, and realize that you are just another technology company either hunting for or actively avoiding an IPO:

• $50 million revenue run rate (forward 12 months);
• 100 or more employees;
• Worth more than $500 million, on paper or otherwise.

That is from search query on Google on Page 1, Rank #4 for the keyword "What is a startup?". And this is a reliable source: TechCrunch. Techcrunch runs the Startup Battlefield, which is a startup event meant to connect startups with either investors or acquirers. Microsoft acquired Twitch-competitor called Beam Interactive.

I am a C.E.O. of a startup, even though it's a corporation. Why? I haven't met any one of the above criterias. Until then, I am not leaving the startup "label."

But yes, you're right, most companies that plan to go IPO, set up as a corporation structure so they don't have to restructure later, like you LLC's do.

Chill out, dude. It's just a word, you can define it however you want to define it, and so can I. You can go off and quote a dictionary if you want to but it doesn't really matter. The term "Start up" means so many different things to so many different people.

I was calm until you rebut my post with a response that felt like a challenge to my comments. Then you pass it off as fact throughout the whole post. A startup is a company that is just starting out. Nothing more, nothing less. That's what it is, and that's what the Startup world thinks, based on the Wikipedia post, and the Techcrunch post. I'd rather go by Techcrunch's word than Wikipedia's, though. Because Techcruch is at the top of the totem pole when it comes to startup events. When those people tell you a start up is a company that's NOT past a milestone, such as 100 employees, worth more than $500 Million. Listen.

Yes, "startup" means a lot of things to different people, but there is a loud consensus of what it is. The consensus is that it's a company that hasn't matured to a level where it can call themselves a "company." And leave the "Startup" label behind.

When you made that last post, it sounds like you're trying your best to negate my comments, and whatnot. Read your post from an outsider's perspective, see how it comes off. Now, I am sorry that I came off as rough, or whatever, but it felt like you were trying your best to be a bit condescending by not understanding what I meant.

Yes, "Startup" is word, yes, it's not a big thing to argue about, but the way you presented your post was a bit condescending. Just a little bit. When people don't understand what I am trying to say, it frustrates me, even though I present proof or quotes, or if it is in plain, straightforward language.

But eh, it is what it is.

 

[James Viker]

Oh, i got it. Thanks for sharing

 

[lunorian]

I'd say it's a company who starts a whole new market and is innovative and introduces interest in investors.

 

[James Viker]

Good idea !