When Does a StartUp Stop Being a StartUp?

This morning David posted this:

“Ask what’s hot in Berlin’s startup circles, and you’ll hear one name over and over: SoundCloud.”

The quote struck me as odd. Because I don’t think of SoundCloud as a StartUp. I’m not saying that to be a dick. The exact opposite in fact. I think SoundCloud is an amazing and successful company. One of the best out there. I’m a huge fan. I don’t know the stats, though I’d wager they have 50 to 60 full-time employees now. Maybe more. It wouldn’t surprise me. They have serious capital in their coiffeurs. Top-notch investors. Proliferation across the web. And, of course, lots of happy paying customers (aka users). So when does one remove the mantle of StartUp and start calling yourself a business? I’m asking in earnest. 

You can substitute virtually any tech company in the last three years for SoundCloud. Behemoths like Foursquare, Tumblr, and heck even Twitter. Are they all StartUps still?

Is it simply because they are not public? Is it because a StartUp isn’t necessarily profitable? Is it because they haven’t achieved the much ballyhooed “product-market fit” I really want to know. Look, I work for a StartUp. We’re seven really hard working people in a little room in SoHo. I love it. Though at some point I want to be a company. Sooner than later.

Maybe it’s different for the tech-space. I’m new to it that’s for sure. Though in my head if I took out a loan, had a lease, hired a few people and opened a bakery, I’m a small business not a StartUp. Why the differentiation in Tech?

Don’t get me wrong – I’m all for the StartUp mentality. It leads to great things. Stay lean, be hungry, disrupt, build, iteriate, challenge, have fun, all that. That should never change. Ever. Though hiding behind or using the label StartUp too long could also have detrimental effects as well like not finding a pressing need to actually start making money so you can stay around forever.

As I started this post, I’m not trying to be a dick here. I really want to know. 

14 Notes/ Hide
  1. jonfreeze answered: Check out what wikipedia has on this word. It really helps distinguish what a startup is as opposed to just a company. Hope this help. :)
  2. toddwickersty answered: My company is still small (5 employees), but has been around 6 years so I consider it less and less a StartUp due to our survival
  3. uvmann reblogged this from kirklove and added:
    Good question! Who has an answer?...already grown-up startup-companies just like
  4. david-noel said: Also: maybe a fitting analogy: As of when were you grown up? I’d say as soon as you have to depend on yourself
  5. david-noel answered: Don’t think there is one defining moment, but several. Timing also a factor, sustained profitability, mainstream adoption, etc
  6. kirklove posted this