Startup company
A
startup company is a
company recently formed, usually until
IPO or
acquisition.
Another definition differentiates a startup from a regular business in terms of the risk/potential success/scalability of each. Whereas a business is usually medium risk and medium return on investment, startups usually have lower bootstrapping costs, higher risk, and higher potential return on investment. Another significant characteristic of a startup is that it is usually much more scalable than a business. Start up companies have lesser investing capital while their projected return of investments are high. The amount of manpower is also typically small for a startup company as they try to decrease expenses and increase profit margins.
Venture capital firms and
angel investors help startup companies get off the ground, exchanging
cash for an
equity stake or loan agreement. Realistically though, many prospective startup founders are forced to simply rack up credit card debt.
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Entrepreneurship*
Business plan*
Venture capital*
IPO*
Exit strategy*
Silicon Valley*
Stock market bubble*
Liquidity event*
How to start a company? (A complete guide!) - Good in-depth article.
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The Entrepreneur's Dictionary
