Wood: Defining a startup not an easy task

It’s not easy preparing an awards program for a sector that’s difficult to define. But, with BizWest’s inaugural “Startups to Watch” program, we’re giving it a try.

Defining what constitutes a startup has defied many people much smarter than I. Ask a dozen individuals what defines a startup, and you’ll likely hear 12 different explanations. Is it the age of the company? Is it an industry sector? Is it ongoing or future revenue generation? Is it profitability? Is it growth potential?

In the end, for Startups to Watch, we’re keeping an open mind. Once selected, honorees will be profiled in print and online and will be recognized at receptions bringing together founders, investors, business leaders and the broader entrepreneurial community.

So how are we defining a startup? It’s certainly not age, i.e., companies that are no more than five years old. In fact, I think that a 10-year-old company might still be in that startup mode (though they might want to hurry up).

And it’s not by industry. Many fascinating startups emerge in a variety of industries, including software, quantum, manufacturing, natural products, the outdoor industry and many more.

And it’s certainly not by profitability. A startup to watch might not be generating revenue, and it certainly might not be profitable.

In many ways, what separates a startup from a traditional small business is scalability, as well as ambition. A local restaurant, accounting firm or machine shop can be an outstanding business without ever intending to grow beyond a single or handful of locations, or a defined customer base. Startups, on the other hand, are built around an idea, technology or business model that has the potential to scale rapidly.

Fortunately, the Boulder Valley and Northern Colorado provide fertile ground for startup creation. (Both regions have ranked high nationally in that regard.) That’s largely due to the presence of research universities, federal laboratories and Fortune 500 employers, many of which spin off companies.

For BizWest’s program, we’ll be looking pretty exclusively on exponential potential for growth. We want to identify companies that are poised for rapid growth, companies that could help shape the future of the Boulder Valley and Northern Colorado.

For now, we’ve extended the nomination deadline to June 15. Through those nominations and editorial review, BizWest will identify early-stage companies that demonstrate strong potential for growth, innovation and impact in the economies of the Boulder Valley and Northern Colorado.

The program will highlight companies across a range of industries — from technology and bioscience to advanced manufacturing, aerospace, artificial intelligence, energy, climate solutions, robotics, quantum science and consumer products — reflecting the diversity and dynamism of the region’s startup ecosystem.

One of the most rewarding aspects of publishing a business journal in this region is identifying emerging companies, before they become household names. Today’s startup could become tomorrow’s major employer or unicorn (a startup that achieves $1 billion in valuation). Through Startups to Watch, we intend to shine a spotlight on the entrepreneurs and innovators who are building the next iteration of the region’s economy.

Christopher Wood can be reached at 303-630-1942 or [email protected].

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