What is a Startup? The Definition and Meaning of a Startup Company
What is the proper definition of a startup? First and foremost I'd like to say that the word "startup" can be quite cliché. You hear this world all the time from longstanding companies to be cool or even companies that are around 2 or 3 years. I think if I were to define a startup or the true definition of a startup is a team that's been formed within about 18 months. They're still in that 18-month cycle in which they've at least tested their product, put together their team and tried to execute within an 18-month period from the start of creating an LOC, creating an Inc. corp, however you want to create it, to about 18 months. I like to think of it as an 18-month window.
Number 2 is the definition of a startup is one in which a team of people that have never created a company. That means that you don't have veterans of the industry. Maybe they've worked at big companies, Fortune 500 companies before, but the majority of the founding team is new to starting their own company. What that means is that you have some experience but no experience creating your own company.
That's your very boiler plate definition, a company that's been created within 18 months and then a team that at least the majority of them have never created a company, baseline.
Third is what makes a great company, what makes a great startup? That's one in which the founding team has created a company that's going to change an industry, and startups are not your typical status quo. They're hopefully a group of people that want to create something so different or so transformative that they've impacted an entire industry.