A startup is a company that’s in the initial stages of business. Founders normally finance their startups and may attempt to attract outside investment before they get off the ground. Funding sources include family and friends, venture capitalists, crowdfunding, and loans.

So, what constitutes a startup? In short, they’re typically companies that tick the following boxes:

• Comprised of < 30 employees
• Financed via bootstrapping, outside investors, or loans
• They’re not considered corporations or “mature” yet; they’re typically not ready to be bought out and are either anticipating or in the midst of hockey stick growth

Below we’ve broken down real-world examples of the various startup types and how they scale.

1. Small business startups: Self-starter, indie companies with small teams

Using the criteria above, the average startup has more in common with an average small shop than it does with Google or Apple. Small business startups are different. From solo businesses and partnerships to small teams, these startups are happy staying startups as they sell their products and services.

And while they’re interested in growth, they grow at their own pace. Such startups are often bootstrapped or self-funded, meaning that there’s less pressure to scale ASAP or be beholden to the immediate needs of investors. 24 Hour Tees is a prime example of one of these types of startups. They think of their workplace as a family, while also running a successful, scalable business. And, they’re proof that you don’t have to be a tech startup to benefit from tech.

Even if you’re a startup that designs T-shirts, you can still save a ton of time and money simply by having an interest in and awareness of technology. Unlike old-school small businesses that get stuck in their ways, companies like 24 Hour Tees invest in tools and automations to level up their business.

2. Buyable startups: Businesses built to be bought out

The concept here: small teams build a business from scratch and sell it to a bigger player in their industry. These types of startups are usually associated with software and tech. Chances are you’ve seen headlines about giants like Amazon or Uber buying out smaller startups. Mergers and acquisitions like this happen all the time. However, building something worth being acquired for millions (or billions) is easier said than done.

3. Scalable startups: Companies that seek capital (or scale themselves)

The common thread between all types of startups is the need to scale. Some startups are easier to scale than others. Most consumer and business apps are examples of scalable startups: once they’ve built buzz and a user-base, it becomes easier to acquire new customers. It’s a sort of snowball effect.

Scalable startups do this by raising capital from outside investors (think: angel investors, venture capitalists, business partners, friends, family). With newfound cash, they can support growth initiatives to score more customers and eventually grab the attention of folks willing to buy them out.

4. Offshoot startups: Companies that branch off from bigger corporations

Not all types of startups are built from the ground up. An offshoot startup is fairly self-explanatory. Simply put, they are startups that branch off from larger parent companies to become their own entities. For example, an offshoot business might be established in an effort for a bigger company to enter a new market or disrupt a smaller competitor. Because these startups act independently of their parent companies, they have freedom to do business and experiment without drawing as much attention or scrutiny.

5. Social startups: Nonprofits and charitable companies

Some startups are specifically designed to do good. Social startups, which include charities and nonprofits, scale for the sake of philanthropy. They operate similarly to any other startup, but do so with the help of grants and donors. A shining example of a social startup is Code.org, an organization that’s managed to raise nearly $60 million (from the likes of Google and Facebook) to help give students opportunities in the field of computer science.