The term “startup” was originally coined in the early tech revolution in 1970s, referring to a new breed of small companies with astonishing growth potential.

Despite of the relatively clear etymology of the term, there has never been a real consensus on how to define a startup. The first startup definitions stem from the first Venture Capitalists’ criteria to identify the companies with the best potential for the investor. Whereas now the search for the ultimate definition of “a good startup” is joined by accelerators, corporations and academia – all with their own viewpoints.


Still, there are 5 key characteristics, which are commonly pointed out:

1) Startups focus on growth.

2) Startups consist of more than one person.

3) Startups consist of less than 500 employees.

4) Startups work with technology.

5) Startups are innovative.


The Hub Startup Definition


At the Hub, we have our own criteria for screening the companies wanting to join the platform. This criteria is centered around 3 core themes: commitment, scalability & innovation.


Commitment

The company needs to exist as more than an idea, as a legally registered company. Therefore we expect the startups joining our platform to have:

  • An organisational number: as proof of company registration.
  • Registered company in each country they are applying in.
  • A website as digital footprint for talent and investors to look up.

Scalable

The company needs to showcase ambitions and abilities for growth. Therefore we accept companies that are:

  • Likely to recruit: as opposed to one-person initiatives who are not likely to recruit.
  • Likely to look for funding at some point: likely to scale 10x via external funding as originally planned by VCs when introducing the term in the 1970s.

New Innovations & Tech

As established in the prior, startups are usually new in the market and make use of technology:

  • No more than 10 years of age: Startups are businesses at the beginning of their life.
  • Showcase tech and/or innovation element: As discussed in key characteristics, not all startups have tech at their core. Examples of none-tech heavy startups who are welcome to join: Design, Consumer Goods, E-commerce and Digital Market Places with proven track records as well as scaleable impact startups.


If you think you fit the definition, join us! If you have any questions, feel free to contact us at info@thehub.dk.

Check out the full article here: https://blog.thehub.io/blog/what-is-a-startup-the-hub-definition/