What is Your Definition of a Startup?

1 min read  What is Your Definition of a Startup?

I work with funds, entrepreneurs, and startups of all kinds across the state of Texas. I was recently talking with an international fund manager looking to invest in Texas deals. He said his investment group wanted to invest in startups. I asked him,

“What is your definition of a startup?”

He looked a little surprised at the question as he like most people assume that everyone shares the same definition.

I’ve learned over the years that where you are in the world molds your definition of what counts as a startup.

In Austin, if you have a great idea, and two people working on it, then you’re a startup.

In Dallas, if you have $1M of revenue, then you’re a startup. If you have less than $1M, then you don’t exist.

In Shanghai, if you have $10M of revenue, then you are a startup.

I once heard a fund manager refer to a $20M company as a startup.

What makes entrepreneur communities vibrant is their inclusion of all players in the ecosystem, not just those with substantial traction. Startups without significant revenue can bring innovation, ideas, support, and other essential drivers for the community. I welcome the broader definition of a startup as it creates a larger community within which to share ideas and foster innovation.

So ask yourself: what is your definition of a startup?

Make sure your own definition is clear before you consider investing, and always keep these 5 key principles in mind:

1. It always takes longer than you think.

2. It costs more than you thought.

3. There’s always a better idea.

4. The journey is the reward.

5. The team is what you will remember.

Read More TEN Capital Education Here

Hall T. Martin is the founder and CEO of the TEN Capital Network. TEN Capital has been connecting startups with investors for over ten years. You can connect with Hall about fundraising, business growth, and emerging technologies via LinkedIn or email: hallmartin@tencapital.group

, , ,
Previous Post
How to Raise Funding at Every Stage of the Business
Next Post
Why we need to Rethink Investor Recognition

Related Posts

Are you Ready for a Series A Fundraise?

1 min read Are you considering launching a Series A fundraise? For startups not requiring FDA, you will need the following before starting a Series A: A product with revenue preferably above $500K/year A growth plan to reach $10M annual…

Guide To Startup Ecosystems

2 min read If you are a serial entrepreneur or are otherwise serious about startups, building a startup ecosystem may be an attractive option to you. Startup ecosystems provide built-in connections and ongoing support, making the growth of a startup…

Understanding Impact Investing

2 min read Impact investing seeks to fund startups with social or environmental benefits. Impact companies have the intent of providing social or environmental aid and solutions with measurable results. The investment must provide a benefit that is more than…