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MDD Project: Startups vs. Butterfly Companies


Depending on the width of the application field of the innovation, there is a notorious difference between businesses that are built upon an invention or discovery. There is a high risk of building a butterfly company when the innovation has a specific use with a specific added value.

A butterfly company is defined as a business that has a beginning and an end within a short timeframe. Only innovations that create a category that has social added value where the trends expand their use can be considered as start-up businesses. A category has been created when a new concept has been installed.

If you read the history of Google, Apple, Ford, Siemens, Facebook, etc. you will find the description of startups that became corporations. There is no difference between them and the creation of a startup based on an innovation that has notorious social value, where the IP can be protected and that is able to build a growing market.

Isolated inventions need to be managed as opportunities that will be absorbed by the market and where the creators can make a larger or smaller profit depending on their negotiation capacity.

Microeconomics Driven Development
Committee