tax·on·o·my – noun – the branch of science concerned with classification, especially of organisms; systematics
I’m frustrated with the current lack of any standard taxonomy for early stage startups. Chalk it up to a little bit of obsessive/compulsive behaviour, the desire to better compare like-for-like amongst startups, my years of experience in industries where these taxonomies existed, and also trying to make better connections between the corporate partners and friends of Techstars to the Techstars portfolio companies. Startups are messy and change ridiculously fast, so a taxonomy will never be as rigorous as what exists in the world of biology. But it doesn’t mean we shouldn’t try!
Angellist probably has the best structure of markets that I’ve seen so far, but the way Angellist structures these markets behind the scenes is actually a fairly deep web of interconnected markets. While that makes sense in that a graph represents how markets are related to each other, the way they’ve built the graph can make it difficult to analyse startups and markets more broadly.
Not only that, but I think startups are complex enough that there should really be multiple dimensions in building a taxonomy for them. These are the dimensions I’ve been pondering recently:
- Market (ie, FinTech, HealthTech, Advertising, Infrastructure, etc.)
- This is where there needs to be multiple layers of “markets”
- Revenue model (Advertising, commerce, subscription, etc.)
- Fred Wilson did a great crowdsourcing exercise to get to a fantastic list
- Platforms (desktop, mobile/iOS, mobile/Android, hardware)
- Orientation (consumer, enterprise, marketplace)
Why am I posting this? Frankly, I’d love any and all feedback. I’d like to get to a point where there’s a taxonomy that helps people like me understand and directly compare and contrast startups that are doing similar things (in different markets), or different things (in similar markets), or any combination thereof.
If you’re interested in this project, or would like to help, please comment below or get in touch with me directly.