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What is a startup?

Here’s a quick guide to what we mean by different terms that you might come across on Dealroom.

 

Entities


Startup

Dealroom qualifies startups based on the following qualifying characteristics:

  1. Innovative by design: the product and/or business model are innovative. In most cases, the company is tech-enabled: proprietary tech/software or business processes heavily enabled by tech.
  2. Rapidly scaling/scalable: as a result of #1, this means that the company can achieve high growth by leveraging its platform.

In other words, these are venture-backable companies.

Scaleup

A startup in its growing phase (growing revenue and over 51 employees)

Corporate

A company having reached the mature stage of its life cycle, through its development, expansion, or  acquisition of other companies

Investor

An entity or individual investing capital in companies

Service Provider

A company providing services to other companies on a project basis

 

Client Focus


B2B (Business)

Companies whose customers are mainly or only other businesses

B2C (Consumer)

Companies whose customers are mainly or only individual consumers

 

Business Model


eCommerce & Marketplace

A place connecting a buyer(s) and seller(s) where goods or services are bought, sold or exchanged

Manufacturing

The making of goods by hand or by machine that upon completion the business sells to a customer

SaaS

Software-as-a-Service, a method of software delivery and licensing in which software is accessed online via a subscription, rather than bought and installed on individual computers

 

Income Stream


Advertising

Monetary income that individuals and businesses earn from displaying paid advertisements on their websites, social media channels, or other platforms surrounding their internet-based content

Commission

Refers to fees earned in making a sale or closing a deal

Subscription

(monthly, quarterly or yearly) a periodic fee paid by the customer to access a service or product

Websites with a pricing page are usually subscription-based. Ex: SaaS businesses, membership fee