What Makes a Start-up a Start-up? Different Definitions

Some industry experts state that Facebook, Google and Uber are still start-ups. Given that these companies are already well-established and successful, it seems it can be difficult to determine whether or not a company has already left its start-up status behind. Today, Connecticut Business Centers, the leading choice for local office space, will discuss the different definitions of what a start-up is:


  • State of Mind – Some believe start-up status is primarily a state of mind. You are a start-up company if your business focuses on working hard and fast to change the way people work or live. Start-up companies embrace flexibility and believe that doing so gives them an edge. This can translate to a less rigid company culture, a focus on distributed workforces and flexible working hours.

  • Metrics – Others believe that metrics like revenue or office space can determine whether or not a company is a start-up. Alex Wilhelm from TechCrunch puts forward the 50-100-500 rule. The rule states that if a company meets or exceeds certain criteria, then they are not a startup. Criteria include a $50 million revenue run rate (forward 12 months), 100 or more employees and a net worth of more than $500 million.

  • Growth – For many people, however, a start-up is characterized by growth. The founder of Y Combinator, Paul Graham, states that a start-up is a company that’s designed to grow fast. A startup is not merely a fledgeling company but it is instead a company that’s focused on growth. The company must have high growth potential. To have that potential, a company must make something that many people want and they must have the capacity to serve all these people.

Our office space services can assist start-ups, large companies, home-based businesses, contractors and on-the-go professionals. We can provide you with customized virtual office plans, video conferencing, furnished office space and team rooms and more. All of our services also come with flexible terms and immediate availability, allowing you to get to work as soon as possible. We are the leading name in our industry in Stamford and Westport, CT. Call us at (203) 359-5600 to learn more about start-ups and our services.