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Start-up Company |
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Description of Start-up Company. Explanation. |
Definition Start-up Company. Description.
A Start-up Company is a new business venture or company in the earliest stage of its operations. It is a relatively new, usually small business, typically supported by Venture Funding by Venture Capitalists.
Due to disappointing revenue, high costs, errors in the underlying Strategic Vision, Strategy or business plan, many of these small scale Entrepreneurial Organizations turn out not sustainable in the long term. In such circumstances, a sound Exit Strategy is useful.
On the other hand, successful startups are typically more profitable than established businesses, in the sense that they can potentially grow rapidly with limited investment of capital.
A company may cease to be a startup as it passes various milestones, such as becoming profitable, or becoming publicly traded in an Initial Public Offering, or ceasing to exist as an independent entity via a Merger or Acquisition.
Compare with: Business Incubator | Liquidation Value | Feasibility Study | Blue Ocean Strategy | Joint Venture | Special Purpose Vehicle |
| Return to Management Hub: Change & Organization | Finance & Investing | Strategy
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End of description Start-up Company. An explanation. |
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