What defines a startup company in Estonia?
Different countries can have different views about what a startup is. When you apply for the Estonian Startup Visa you need to make sure you’re on the same page with the official info. Typically, a startup is a company in the early stages of its development. It has 1-3 founders and capitalizes on market demands by developing a viable product, service, or platform. In Estonia, startups are technology-based, innovative and have a globally scalable business model.
Principles startup companies usually focus on:
- Find a problem worth solving, then define a solution
- Engage with early adopters for market validation
- Continually test with smaller, faster iterations
- Build a function, measure customer response, and verify/refute the idea
- Make evidence-based decisions on when to “pivot” by changing your plan’s course
- Maximize the efforts for speed, learning, and focus
One feature that most people seem to agree on for the definition of a startup is focusing on growth. Small businesses may be happy staying small businesses forever (for example one-man consultancies, e-shops, restaurants), but startups don’t want to stay small. Startups have a goal to grow and scale, usually quickly and usually using technology to do so.
“A successful startup typically wants to solve a problem and make the world a better place.”
Common characteristics of a startup:
- Focused on growth
- Solves a problem
- Searches for product-market fit and a sustainable business model
- Fills a gap in the market
- Changes the way things are traditionally done
- Works toward an innovative common goal
- Prototypes a concept
Does this startup definition sound like the business you are trying to launch? Join the Estonian startup community, manage your company online and get access to the EU market! Take your first steps and apply for the Estonian Startup Visa. We will help you with the application process, get started now!