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Which company category should I select?

How "company category" differs from "industry", and the influence of category on the final valuation.

Dan Gray avatar
Written by Dan Gray
Updated today

As part of our ongoing efforts to improve the quality, transparency, and relevance of startup valuations, Equidam has introduced a new question in the valuation questionnaire: "Which category best describes your product or service?"

This article explains what this question is, how it differs from the existing industry question, and how to select the most appropriate category for your company.

What is the Company Category Question?

The new company category question allows you to describe your company based on the technology, business model, or structural approach you're using to build your product or deliver your service.

You’ll now see a dropdown menu on the platform asking you to select the category that best describes your company. These categories include things like AI, Developer Tools, Fintech, Biotech, Enterprise Software, and more.

Important: This input is currently used for data collection only. It has no impact on your valuation for now.


How is This Different from Industry?

Equidam already asks for your industry, which refers to your target market—the customers you serve and the problem you’re solving from a consumption standpoint.

Industry (Existing)

Company Category (New)

Based on the market you operate in

Based on how your company operates

Determines risk profile and growth potential

Provides context about technology or business model

Directly influences valuation

Currently does not influence valuation

Examples: Healthcare, Logistics, Retail

Examples: AI, Blockchain, SaaS, Robotics

Why Does This Matter?

Valuation is primarily affected by the industry you serve. This is because risk and potential are shaped by your market environment. For instance:

  • An AI startup for logistics is exposed to logistics risks (e.g. shipping disruptions), not AI risks.

  • A blockchain solution for asset management still faces asset management compliance and market cycles.

The company category, on the other hand, might affect your financials (e.g. lower costs, faster growth), but these effects are already reflected in your projections, not in a standalone multiplier or risk premium.


Where Do the Categories Come From?

The list of categories was adapted from the Y Combinator startup categories, with a few edits to suit Equidam’s valuation framework.

We removed some categories that were:

  • Redundant (e.g. "Artificial Intelligence" — already covered by "AI")

  • Ambiguous (e.g. "Video", "Security", "Sales")

  • Outdated or Overly Broad/Narrow (e.g. "DevSecOps", "E-learning", "India")

The goal is to maintain a clean, relevant, and structured list that enables us to collect valuable data without duplication or confusion.


Full List of Categories

Below is the full list of current categories, which may be updated over time based on feedback and observed patterns.

Category

Description

AI

Startups applying artificial intelligence to solve problems

Biotech

Companies involved in biological sciences and biotech innovation

Fintech

Innovations in finance, payments, banking, or investment

Developer Tools

Products built for software engineers and dev teams

Enterprise Software

Software designed for corporate/large-scale use

Generative AI

AI models that produce content (text, visuals, code, etc.)

Health Tech

Technologies enhancing healthcare delivery or outcomes

Robotics

Companies building or programming robots

Marketplaces

Platforms connecting supply and demand in two-sided models

Blockchain / Crypto / Web3

Startups using decentralized technologies

ClimateTech

Startups focused on climate adaptation or sustainability

SaaS

Software-as-a-service platforms

Hardware

Companies creating physical or connected devices

API

Products offering API-first experiences

Open Source

Projects or companies with open codebase models

Food Tech

Innovations in food production, logistics, or consumption

No-code

Tools allowing users to build without traditional coding

Genomics

Startups working with gene sequencing or analysis

Synthetic Biology

Companies engineering biological systems

AI Assistant

AI-powered tools designed to perform assistant-like tasks

Design Tools

Software for UI/UX, graphics, or creative workflows

Workflow Automation

Tools that streamline or automate business processes

VR

Virtual Reality experiences and platforms

AR

Augmented Reality interfaces and devices

Ed Tech

Educational platforms and tools

Smart Cities

Technology infrastructure for urban optimization

Mobility

Transport and urban movement technologies

Space

Companies operating in aerospace or orbital tech

Quantum Tech

Businesses leveraging quantum computing or sensors

Messaging

Communication-focused platforms

Creator Economy

Tools empowering individual content creators

DevOps / AIOps

Tools for deployment, operations, and monitoring

Infrastructure

Foundational digital technologies and services

Compliance

RegTech, legal compliance, and governance software

Social

Platforms focused on social interaction or networking

Community

Community-building platforms and engagement tools

Recruiting

Hiring platforms and job market innovations

Subscriptions

Companies built on recurring revenue models

Manufacturing

Tech for improving industrial or product manufacturing

Proptech

Innovation in property management or real estate

LegalTech

Technology for legal services or access to justice

Mental Health Tech

Startups focused on mental health care and support

Therapeutics

Companies developing medical therapies or drugs

AI-powered Drug Discovery

AI applied to pharmaceutical R&D

Deep Learning

Startups using deep neural networks

Cloud Computing

Businesses offering cloud infrastructure or services

Analytics

Platforms for data analysis and business intelligence

Ecommerce

Online selling platforms and services

Consumer

B2C product companies or marketplaces

Neobank

Digital-only financial institutions

Retail

Tech in brick-and-mortar or omnichannel retail

Automation

Startups that automate physical or digital tasks

Enterprise

Broad B2B service providers or infrastructure tools

Note: This list may evolve over time. We will publish updates when any categories are added, removed, or renamed.


How to Use This in the Platform

  1. Go to the questionnaire section on the platform.

  2. Locate question 19: “Which category best describes your product or service?”

  3. Select the option that most closely matches your company’s core focus.

  4. If your company spans multiple categories, choose the one that best captures your product’s identity or innovation type.

You can always revisit and update this field as your business evolves.


Still Have Questions?

If you’re unsure which category to choose, or if you believe your company doesn’t fit into any of the listed options, feel free to send us a message through Intercom! We’re happy to guide you.

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