How Long is a Company a Startup? 9 Essential Milestones to Know

You’ve probably heard the term “startup” thrown around countless times, but have you ever wondered when exactly a company stops being a startup and becomes something else? How long is a company a startup? If you’re building or working for a growing company, especially in Latin America, this question isn’t just academic. It affects everything […]

How Long is a Company a Startup? 9 Essential Milestones to Know

You’ve probably heard the term “startup” thrown around countless times, but have you ever wondered when exactly a company stops being a startup and becomes something else? How long is a company a startup? If you’re building or working for a growing company, especially in Latin America, this question isn’t just academic. It affects everything from how you recruit talent to how investors see your business.

The answer might surprise you. While there’s no universal timer that goes off after a certain number of years, most companies remain in startup territory for 3 to 10 years. But here’s what’s really interesting: in Latin America, that timeline is getting shorter, and the milestones are shifting faster than ever before.

Why the Startup Definition Matters More Than You Think

Before we dive into the specifics, let’s talk about why this matters for your business. When you’re recruiting talent across Latin America, understanding where your company sits on the startup-to-mature spectrum directly impacts your hiring strategy, compensation packages, and the type of professionals you can attract.

The stakes are higher than you might realize. In 2024, 65% of capital in Latin America went to mature companies, with foreign investors focusing heavily on later-stage investments. This shift means the definition of “startup” has real financial implications for your growth trajectory.

The 3-to-10-Year Rule: What Research Actually Shows

Most research points to a 3-to-10-year window for the startup phase, but this isn’t set in stone. In Latin America specifically, we’re seeing this period compress due to rapid digitalization and increased foreign investment. Understanding how long is a company considered a startup becomes crucial for strategic planning.

Here’s what makes a company move through this phase faster:

Access to international funding (foreign investors are pouring money into the region) • Digital transformation acceleration (84% of employers are upskilling for digital talent) • Market maturity (established infrastructure in countries like Mexico, Brazil, and Argentina)

The key insight? Latin American startups are maturing faster than their counterparts in other regions. This creates unique opportunities for companies that understand how to scale quickly while maintaining startup agility.

How Long is a Company a Startup? 9 Key Milestones

Forget the arbitrary timelines. Here are the concrete milestones that actually matter:

Funding Evolution: Beyond Series A

When you reach Series B or later funding rounds, you’re typically crossing into mature territory. The numbers back this up. In Latin America, we’re seeing large rounds for companies like Clip, Justo, and Uala, with Argentina’s Uala raising $330 million alone (73% of the country’s total capital).

The 50-100-500 Benchmark

Industry experts often reference the “50-100-500 rule”:

$50 million in revenue signals you’re moving beyond startup phase • 100+ employees indicates organizational maturity • $500 million valuation puts you in mature company territory

Operational Stability Markers

Stable revenue streams and profitabilityClear market position with defined competitive advantages • Established corporate structure (many Latin American companies “flip” to offshore structures for VC requirements)

As Alfredo Castellanos from Glisco Partners puts it: “2024 was a year for redefinition. Startups that managed to adapt to changes in the market now have more solid and sustainable models.”

How Startup Maturity Transforms Your Hiring Strategy

This is where things get practical for your business. As companies mature, their recruitment needs shift dramatically, and understanding this shift is crucial when you hire front end developers in LATAM or any other specialized talent.

Early-Stage Startup Hiring (Years 1-3)

Generalists rule: You need people who can wear multiple hats • Equity-heavy compensation (though less than 20% of startups currently offer ESOPs due to financial uncertainty) • Cultural fit over specific skills

Mature Startup Hiring (Years 4-10+)

Specialists become essential: Big data analysts, AI/ML specialists, sustainability experts • Competitive salary packages (57% of Argentine employers focus on salary and compensation) • Structured career progression paths

The numbers tell the story. In Latin America, the fastest-growing job roles include:

Big data analystsAI and machine learning specialistsSustainability specialists (projected +29% by 2030) • Renewable energy engineers (projected +22% in 5 years in Colombia)

The Latin American Advantage: Why Startups Mature Faster Here

Latin America’s startup ecosystem has unique characteristics that accelerate the maturation process:

Digital Leapfrogging: Countries like Argentina (96% automation adoption) and Mexico (95% automation adoption) are embracing technology faster than traditional markets.

Foreign Investment Focus: With 65% of 2024 capital going to mature companies, the ecosystem rewards businesses that can demonstrate stability and growth potential quickly.

Regulatory Adaptation: While 50% of companies cite outdated regulations as barriers, successful startups are finding ways to navigate these challenges faster.

The World Economic Forum notes that “digitalization is expected to be one of the biggest drivers of labor-market transformation in Latin America over the next five years.”

Red Flags: When Startups Get Stuck in Limbo

Not every company successfully transitions to maturity. Here are warning signs that a startup might be struggling with the transition:

Funding rounds that don’t progress (stuck in Series A for years) • High employee turnover in key positions • Revenue growth that plateaus without clear paths to profitability • Market position that remains unclear after 5+ years

The Financial Reality: What Mature Startups Look Like in 2025

The financial landscape for mature startups in Latin America is evolving rapidly:

Venture Debt Growth: Mixed rounds and alternative funding are becoming common, with secondary markets projected to grow 60% annually in 2025.

Employee Equity: While ESOPs are offered by less than 20% of startups due to financial uncertainty, mature companies are finding creative ways to offer equity-like benefits.

Competitive Compensation: The talent war is real. Companies must offer comprehensive packages including health benefits, career progression, and competitive salaries to attract top talent.

Industry Insights: What the Experts Are Saying

Mercer’s Global Talent Trends report emphasizes: “In an era where people risk equates to business risk, striking the balance between tech acceleration and a winning work experience will be critical.”

This insight is particularly relevant for companies transitioning from startup to mature phases. The ability to maintain startup culture while offering corporate-level benefits becomes a key differentiator.

Looking Ahead: The Future of Startup Maturity

Climate-Related Skills: There’s rising demand for environmental-stewardship and carbon-cutting skills, especially in countries like Mexico (69% for environmental-stewardship) and Brazil (53% for emissions-related skills).

Soft Skills Premium: 73% of employers prioritize resilience and agility, while 77% value creative thinking. These skills become crucial as startups mature.

Automation Integration: High adoption rates across the region mean mature startups must integrate AI and automation from the ground up.

Ready to Scale Your Team for the Next Phase?

Understanding where your company sits on the startup maturity spectrum isn’t just about labels. It’s about making strategic decisions that will define your next phase of growth. Whether you’re a 2-year-old startup ready to scale or a 7-year-old company preparing for your Series B, the talent strategy you choose today will determine your success tomorrow.

At Nearshore Business Solutions, we help US companies navigate these transitions by connecting them with the right talent across Latin America. From early-stage generalists to specialized experts who can drive mature company growth, we understand how startup evolution impacts your hiring needs.

The startup journey in Latin America is accelerating, and the companies that understand these milestones and plan their talent strategy accordingly will be the ones that thrive in this dynamic ecosystem.

Frequently Asked Questions

Q: How long is a company typically considered a startup?
A: Research suggests 3 to 10 years, though Latin American startups often mature faster due to increased foreign investment and rapid digitalization.

Q: What are the key milestones that indicate a startup is becoming mature?
A: Reaching Series B funding, achieving stable revenue (often $50M+), employing 100+ people, and reaching valuations of $500M+ are common indicators.

Q: Why do Latin American startups mature faster than others?
A: Due to rapid digitalization, increased foreign investment focus on later-stage companies, and high adoption rates of automation and AI technologies.

Q: How does startup maturity affect hiring strategies?
A: Early-stage startups hire generalists, while mature startups need specialists like AI/ML experts, data analysts, and sustainability professionals.

Q: What percentage of Latin American startups offer employee stock options?
A: Less than 20% currently offer ESOPs due to financial uncertainty, though this is changing as companies mature and secondary markets grow.

Q: What skills are in highest demand for mature startups in Latin America?
A: Big data analysis, AI/ML specialization, sustainability expertise, and renewable energy engineering are among the fastest-growing roles.

Q: How important is foreign investment in determining startup maturity?
A: Very important. In 2024, 65% of capital in Latin America went to mature companies, with foreign investors focusing heavily on later-stage investments.