Not all startups are of same type, neither their people and goals are same nor their strategies and funding. The taxonomy by Blank categorizes startups into 6 types. Knowing to which class of taxonomy it belongs to can increase the odds of success of a startup.
Following is a brief understanding of each type of startup.
1. Lifestyle Startups
Lifestyle startups are those entrepreneurs who are passionate about living their own life. They do not work for others, they are committed to live life their own way, they do what they love no matter how little monetary value they get out of it. Or in simply words they are passionate about whatever they do.
2. Small Business Startups
Small business startups are those who want to own their goal is to feed their families. They hire local employees and they are not targeted towards growth or scaling up their business.
3. Scalable Startups
This is the type of Startups which think big, they have high growth potential and are in search of repeatable and scalable business model. That's why Venture Capitalists have attraction in them.
These kind of startups can be seen in Silicon Valley.
4. Buy-able Startups
The goal of these startups is acquisition. They are focused to be acquired after some time till they reach to a medium sell-able price. They are normally sold in millions of dollars.
5. Social Startups
These Startups work to make a positive difference in society. They work for social good to contribute to a better world.
6. Large Company Startups
To avoid becoming a potential disruptee, and to assure their survival, large organizations establish such kind of Startups. Large companies do this to invent new business models for their future. But keep in mind these are not smaller versions of larger companies, to be successful these startups require a totally different organizational structure and environment than that of the large organization.
For a detailed understanding of each of these Startup types please visit this Wall Street Journal article
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