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The term "startup" is many times used for:

- Marketing: you get plenty of free press if you are a "startup" vs a medium sized business.

- Hiring: new hires and many hardworking people want to work in a cool and hip company. The use of "startup" creates that halo.

- Capital structure and financial discipline: there is nothing wrong if a "startup" isn't generating revenue and/or profits, because "we are in the growth stage". A medium sized business which isn't generating any revenue and/or profits isn't financeable and a shipwreck waiting to happen.



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