Tech startup? Is yours pure tech or tech enabled?

There are tons of definitions out here on startups. I won't try defining it my way. What i'll do is give you my favorite definition. A definition of start ups by startups.co.uk. Why do I love their definition? because it gives you the freedom to fit your own definition within it. It defines a startup in terms of the actual business, or in terms of the spirit or mentality within which the company was created.

When you here of the word startup, most of us associate it with technology. Can't startups exist outside this space? That is a story for another day.

Today, we focus on tech startups vs tech-enabled startups and their differences. It is important to know the type of startup you run. This will enable you cut costs from your company, that will help you boost that bottom line.

Simply put, a tech startup is;

1. one whose key activity is innovation.

2. one that builds hardware, software, algorithms and platforms

3. focuses more on intellectual property, design and safe guarding its trade secrets.

The best example I could find for this was bodi.me , a tech startup that is revolutionizing the online fashion industry. This company uses a 3D body scanner to find your size of online clothing. But why is this a tech - startup? Because it has built the technology tools that help in the size measurements. That is what it is selling.

Tech - enabled startups on the other hand, integrate technology into the products or services that they are providing. These are meant to find more efficient/smarter ways of providing a service. Take uber for example, the company leveraged on GPS technology and mobile computing to make transportation easier, more efficient. The same applies to Airbnb. Closer home, look at Cellulant , Afya plan M-kopa, all these have used technology to make tasking tasks (see what I did there?? :-) easier to handle. But have they created new products? No. These are tech enabled startups.

As we progress, we will understand why it is good to understand the type of startup that you are, understand the products you offer, how to get to market, the secrets that have been used by successful startups, and so much more.

Are you a young founder, a founder or know of a founder who would like to be featured in our new column 'know your founder' (coming soon). Drop me an email.

I would like to hear your views on this topic, and more of what you would want to see at young founder.