cloud network hunting note: everyone has his own definition of startups, but almost everyone’s definition is wrong.
if you often read technology article, I will not worry to tell you that you may have a wrong understanding on “entrepreneurship”. Many startups are those of human eye is small but very fast growth of the company, and is expected to replace those dying, try very hard to maintain and couldn’t stop himself into the decline and fall of companies.
so, in the true sense of startups do what? I will have such a question because there are many company itself as the startup, but completely don’t deserve. Uber is a start-up company? Of course not. Your crazy uncle that entrepreneurship by gang sticky rocket toys accessories co., LTD. Is a venture company? No, this is just a hopeless period.
that is made up of 14 people, was established only a year of science and technology company, raised $437000, then by burning money every month to maintain their consecutive quarter of growth, the company is a start-up? B: yes.
of course, it is a grey area the definition of the scope, so I’m going to explain.
each of us has our own definition of startups, but almost everyone’s definition is wrong. Recently, I send this question to a lot of people, then get a lot of answers: what use it to define the “startup” company, profit? Fixed number of year? Management structure?
I asked some venture capitalist ideas, Christopher Calder, Epic investment adviser, addressed the issue of management structure; Kleiner Perkins Matt Murphy mentioned point of profitability; Charles River of Rafael Corrales, focus on ability to grow it.
if so, amazon lost a lot of money, Uber has been set up for many years, even there are a lot of startups at startup management team structure, it is very funny. As a result, the VCS have given advice is not reliable.
I think we can use 50, 100 or 500 principle, this principle put forward by me. Here are explained in detail: if your company meet the following conditions, it is a startup. And you should be aware that it is a technology company looking for or should actively avoid IPO:
5000 million ($50 millions) revenue funds rate (12 months) before operation;
within 100 employees;
company valuations within the $500 million millions (” 500 “).
so, if your company is worth $4.99 billion and has 99 employees, with $49 million and are in motion, so to celebrate, your company or a startup (in fact, if you have startups, that means that in the future you will have more than 10 times the revenue and millions of dollars in profits).
let’s give some interesting examples. Mattermark and Buffer are start-up companies. Mattermark recently published investment valuation, operating income and the number of employees — $25 million, 25 million annual income, and 27 worker – these are consistent with our standards. Buffer, valued at $6000 in the previous round of funding, average annual income of $4.8 million and has 30 employees. All meet.
but millet, Uber and other emerging technology industry companies are already no longer is the startup. They are emerging companies. What is the new company? Those success stories in 2010, green shoots in the loose economic policy and low interest rates environment, be boring vc firms with high growth potential as an excuse to packaging listed company (is). Moreover, they are worth $1 billion or more.
but emerging companies are already on the market, they are no longer the startups.
in the end, who thinks that a company has $40 billion would be a startup? Usually for the scale of the listed company (market value) definition:
small companies: $300 million to $2 billion.
medium-sized companies: $2 billion to $10 billion.
large companies: more than $10 billion.
so, generally speaking, the open market statistics show that not only Uber overvalued for $40 billion. There are a lot of company growth quickly, but are not all start-ups.
before you go to sleep tonight, please lie down on the bed silently and 50, 100, 100. You will understand it.