MOX
Products
Learn about our additional services
Resources & Elements
Return

MOXNicolás Aravena
19-10-2021

Differences between ScaleUp and StartUp

ScaleUp, or rather, "scalar" in Spanish, refers to companies that have already been classified as StartUps at some point and are now in a more advanced process. That is, they are seeking to scale their business model to continue growing progressively.

Some of the differences between StartUps and ScaleUps are that the former seek financing to begin their innovative business; they are highly likely to grow extensively and market products or services with the help of information and communications technologies (ICTs), in addition to being guided by their own customers. The latter, meanwhile, refers to companies that have grown at a certain pace over a specific period and now need to scale to a new business model.

In the process of transitioning from StartUp to ScaleUp, the company must consider its business model; it must have scalable characteristics that enhance the business. According to the Organization for Economic Cooperation and Development (OECD), a company must have an annual return averaging more than 20% over the last 3 months, in addition to having at least 10 employees.

Companies like UberEats, Cabify, and PedidosYa are already considered ScaleUps due to their experience within startups and the needs they have had to continue growing in the market based on their own users.

Other articles that might interest you