A Startup is a Human Institution Designed to Create New Products and Services Under Conditions of Extreme Uncertainty

A startup is not defined by its size, age, or industry. Instead, it is any human institution created to develop a new product or service in an environment of extreme uncertainty. This uncertainty is the defining characteristic of a startup, and it is what distinguishes it from a traditional business.

This definition is broad and can include:

• A new company founded by a few people in a garage.
• A new division within a large, established corporation.
• A new project or initiative in a non-profit or government organization.

The key is that the organization is attempting to do something new, and the outcome is not known. The goal of a startup is to find a sustainable business model before it runs out of resources. This is achieved through a process of continuous experimentation and Validated Learning.