In popular culture every new business is often called a "startup". Yet to me, the key feature defining a startup in the "Silicon Valley sense" is a capital structure optimized for:
1. growth of equity value as the primary "payday" for the founders
2. receiving investment in exchange for equity based on a similar "payday" for the investors
3. non-linear growth of equity value.
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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[ 5.3 ms ] story [ 17.6 ms ] thread1. growth of equity value as the primary "payday" for the founders
2. receiving investment in exchange for equity based on a similar "payday" for the investors
3. non-linear growth of equity value.
Technology tends to facilitate this organizational optimization, but it can also facilitate business optimized for the generation of regular cash returns to investors.