Capital-driven "startups" are generally not about "validating business models" - rather, c-startups are about "validating a team's capability to generate a positive internal rate of return". The team may shuffle through various business models, but its success is defined by financial stability. The team is in the spotlight. The hypothesis to be supported or disproven is about the financial viability of its human capital.
Product-driven "startups" tend to mean a startup is trying to validate or disprove a value-chain hypothesis, abstract of its human capital, hence "business model". The commanding officer for such an operation may shuffle through various teams, until the right people are found who can categorically prove or disprove the viability hypothesis. But many p-startups ultimately fail to categorically prove or disprove the viability of their product ... often, p-startups simply run out of financial resources, and either turn into c-startups, or die.
This distinction is crucial. A change in the fundamental purpose of an organisation must be recognised as a sea change for its governance operations.
