What is a startup?: our definition

Turns out, despite the focus on them in technology news, there are lots of questions about what exactly a ‘startup‘ is.

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