Any new business might use the word as an adjective, but we at Technically Philly think we need a philosophy for what exactly constitutes a technology startup when we categorize and cover their work in the Philadelphia region.
Here’s our definition. Tell us what we’re missing.
- Broadly, a startup is a new business that is testing plans for scalable revenue.
Though not always, a technology startup typically has these common traits (ultimately, the ‘startup’ concept is, particularly today, a state of mind that is driven by those who self-identify with that culture):
- Fewer than 20 employees
- Younger than three years
- Seeking or have secured early-stage investment, especially angel and Series A.
- Looking at scale of a product, rather than growth of a service
- Led by initial founders who describe themselves as entrepreneurs
- Focusing on disrupting existing processes through greater efficiencies
- Often involves technology solutions to create efficiencies through product over service