What Is a Startup?

 

A startup is an organization created to search for a repeatable and scalable business model.
According to Steve Blank, one of the pioneers of the Lean Startup methodology, a startup is:

 

“A temporary organization designed to search for a repeatable and scalable business model.”

 

In this sense, a startup is fundamentally different from a traditional newly established company.

 

 

Key Differences Between a Startup and a Newly Established Company

 

Not every new company is a startup. The main characteristics that distinguish a startup are:

 

1. Scalability

 

• Ability to reach a much larger customer base with the same product or service

• Revenue can grow much faster than costs
  ➡️ (e.g., software, platforms, SaaS models)

 

2. Uncertainty and Experimentation

 

• Starts without a fully defined business model

• Constant testing, learning, and pivoting

• Focus on achieving product–market fit

 

3. Rapid Growth Focus

 

• The goal is not to remain small and stable

• Designed to grow quickly and enter large markets

 

4. High Risk – High Return

 

• High probability of failure

• But if successful, it can create extremely high value and returns

 

5. Innovation and Technology Orientation

 

• Rather than copying an existing business

• Offers a new solution, product, or business model

 

 

The Startup Ecosystem in Türkiye

 

• Has developed rapidly, especially after 2010

• Istanbul has become one of the major hubs in the MENA (Middle East & North Africa) region

• Government support, universities, technoparks, and incubators actively contribute to the ecosystem

• However, compared to hubs like Berlin and Tel Aviv, the pace of development is relatively slower

 

Relationship Between Traditional Capital and Startups

 

• Traditional capital is increasingly interested in startups

• However, cultural and operational differences remain between traditional businesses and startups

• The most efficient model is often:
  ???? Traditional capital investing through venture funds as LPs (Limited Partners), rather than making direct investments

 

Role of Incubators and Technoparks,

 

Incubators:

• Prepare entrepreneurs for market conditions

• Provide mentoring, office space, networking, and training

• Are especially critical for first-time founders

However, some critics argue that:

• Excessive support may keep weak startups alive longer than they should

• This may disrupt “natural selection” in the ecosystem

 

 

One-Sentence Summary

 

Traditional new company:

Is established to operate a known and proven business model.

Startup:

Is established to search for an innovative, scalable business model—often before knowing exactly how it will make money.