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Kavii SuriTop Contributor
GEEK | Content Writing Intern | Pursuing CS | Exploring ML and Data Science
Asked a question 3 years ago

How can startups be classified without going too deep?

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Kavii SuriTop Contributor
GEEK | Content Writing Intern | Pursuing CS | Exploring ML and Data Science

Sometimes it seems that the trendiest word today is a “startup”. While the popular definition of a startup as a "tech company with less than 100 people" isn't wrong, it fails to explain its' entire philosophy.

Let’s explore the definition of a startup according to the Silicon Valley legend Steve Blank. 

Six Types of Startups by Steve Blank

1. Lifestyle Startups: Self-employed folks

Lifestyle entrepreneurs are living their preferred lives while working for no one, but themselves. In Silicon Valley, such professionals are freelance coders or web designers, who love their jobs, because of passion.

2. Small Business Startups: Feeding the Family

Small businesses are grocery stores, hairdressers, bakers, travel agents, carpenters, electricians, etc. They are those, who runs his/her own business to feed the family.

3. Scalable Startups: Born to Be Big

Google, Uber, Facebook, Twitter are just the latest examples of scalable startups. From the very beginning, the founders believe that they are going to change the world.

Such startups hire the best and the brightest. They always search for a repeatable and scalable business model.

4. Buyable Startups: Born to be bought

During the last five years, startups that offer Web and mobile app solutions, are sold to larger companies. This tendency becomes more and more popular. Their goal is not to build a billion-dollar company, but to be sold to a larger company for pretty cash.

5. Large Company Startups: Innovate or die

Large companies have a finite life duration. Changes in customer preferences, new technologies, legislation issues, new competitors create pressure, forcing large companies to create new innovative products for new customers in new markets (for example - Google and Android).

6. Social Startups: Mission - Difference

They are passionate and driven to make an impact. However, unlike scalable startups, their mission is to make the world a better place, not for wealth's sake, but for an idea.