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Define a startup

2 pointsby kylorenabout 9 years ago

1 comment

brudgersabout 9 years ago
In popular culture every new business is often called a &quot;startup&quot;. Yet to me, the key feature defining a startup in the &quot;Silicon Valley sense&quot; is a capital structure optimized for:<p>1. growth of equity value as the primary &quot;payday&quot; for the founders<p>2. receiving investment in exchange for equity based on a similar &quot;payday&quot; for the investors<p>3. non-linear growth of equity value.<p>Technology tends to facilitate this organizational optimization, but it can also facilitate business optimized for the generation of regular cash returns to investors.
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