Re:Fitbit Raises $43 Million
by antr on Tuesday August 13, 2013 @03:46PM
(#6207828)
The term "startup" is many times used for:
- Marketing: you get plenty of free press if you are a "startup" vs a medium sized business.
- Hiring: new hires and many hardworking people want to work in a cool and hip company. The use of "startup" creates that halo.
- Capital structure and financial discipline: there is nothing wrong if a "startup" isn't generating revenue and/or profits, because "we are in the growth stage". A medium sized business which isn't generating any revenue and/or profits isn't financeable and a shipwreck waiting to happen.
- Marketing: you get plenty of free press if you are a "startup" vs a medium sized business.
- Hiring: new hires and many hardworking people want to work in a cool and hip company. The use of "startup" creates that halo.
- Capital structure and financial discipline: there is nothing wrong if a "startup" isn't generating revenue and/or profits, because "we are in the growth stage". A medium sized business which isn't generating any revenue and/or profits isn't financeable and a shipwreck waiting to happen.