Start-up Company

Knowledge Center


Description of Start-up Company. Explanation.


  1. Summary
  2. Forum
  3. Best Practices
  4. Expert Tips
  5. Resources
  6. Print

Definition Start-up Company. Description.

A Start-up Company (SC) is a new business venture or company in the earliest stage of its operations. It is a relatively new, usually small business. Sometimes SCs are not even real legal companies yet, because they are still temporary or in formation.


Quite often, the term startup company is used to indicate just a subset of new companies: technology-oriented firms having perspectives for exceptional growth, aiming at disruptive innovation, or at creating a Blue Ocean. Such startups, when they are successful, are typically more profitable than established businesses, in the sense that they can potentially grow rapidly with limited investment of capital.


Attractiveness of Startup Companies for Investors. Scalability!


In case they are designed to search, build and implement a repeatable and scalable business model, allowing for fast future growth, SCs are very attractive for suppliers of private equity or venture funding, such as angel investors, venture capitalists. A startup company represents an attractive opportunity for an exceptional return on investment, albeit with high risk levels.

The End of Startup Businesses

Due to disappointing demand, revenues, or errors in the underlying strategic vision, strategy or business plan, many small scale entrepreneurial organizations turn out not sustainable in the long term. In such circumstances, a sound exit strategy is useful.

In a more positive scenario, a startup business will cease to be considered a 'startup' when it passes certain milestones, such as becoming profitable, or becoming publicly traded in an Initial Public Offering. Also it may end its life as an independent entity through a merger with or an acquisition by another firm. 

Start-up Companies Forum
  The 4 Main Tensions in Start-ups
Wakee and De Weerd-Nederhof (2008) researched what types of functions or "capitals" (high-tech) start-ups are facing - and need to manage, balance and overcome - during their rapid growth phase. These f...
  5 Development Stages of Small Businesses and Start-ups (Churchill and Lewis)
As companies grow, they pass through different growth stages. Churchill and Lewis researched five development stages that companies go through as they grow and mature. Every development stage is characterized by different organizational structures, d...
  Pitfalls in Financial Planning of Start-ups
Poor financial management and planning during the initial stages of start-ups' operations may cause underperformance or even failure. Dunn and Cheatham (1993) identified several factors, which are characteristic to overall poor financial planning by ...
  Why Start-ups Prefer Short-term, Internal Financing
Bootstrapping, being defined as a set of methods to enable companies to meet its financing needs without reaching out for long term external financing, is applied by 90% of start-ups at some point in time (Windborg and Landström, 2001). The applicati...
  Start-Ups Must Be Socially Beneficial
Start-ups are generally associated with high growth, technology oriented companies in which investors are interested due to their risk-reward profile, low costs, higher risks and high potential for ROI (Return on Investment).
Merely having an id...
  Heavy Competition is Beneficial for Startups
Having studied tax data of 2 million companies that were launched in the UK between 1995 and 2005, Andrew Burke and Stephanie Hussels in a short article "How Competition Strengthens Start-ups" (HBR March 2013), report that companies launched in crowd...
  Creating the Foundation for a Later Success Culture in Start-ups
How does a start-up lay a foundation for a success culture during early stages?
Does culture happen naturally, or can the company consciously build it. Would love to hear your comments....
  Strategy in Startup Stage
Is strategy development important at the start up stage? Any actual experiences?...
  Life Cycle of New Venture. Growth and Transitions
Is the life-cycle model appropriate to use when describing the growth and transition of a new venture?...

Start-up Companies Special Interest Group

Special Interest Group


Best Practices - Start-up Companies Premium

Expert Tips - Start-up Companies Premium

Aligning Compensation Plans for the Sales Force of Start-Ups

In today’s dynamic environment, organizations – especially start-ups – often shift their strategy over time. In this process, it is critical that the ...
Usage (application): Aligning Sales Force Behavior and Changing Strategy Directions, Sales Compensation Plans

Resources - Start-up Companies Premium

Sources and Methods of Financing a Start-up Company or Small Business

This presentation elaborates on the methods to finance a start-up company. The presentation includes the following sections:
Section 1: Financing...
Usage (application): Finance, Start-up Financing, Small Business, SME, Bootstrapping, Equity Capital, Debt Capital, Venture Capital

Establishing an Innovative Social Enterprise

This presentation elaborates on social entrepreneurship and innovation. It includes the following sections:
1. Workshop purpose
2. Social en...
Usage (application): Social Entrepreneurship, Entrepreneurial Organization

Entrepreneurial Finance: Sources Of Funding

Interesting presentation about the financing of new companies, including the following sections:
1. What makes entrepreneurial financing differen...
Usage (application): Financing New Ventures, Start-up Financing, Equity Financing, Debt Financing, Venture Capital, Entrepreneurship

Business Valuation | Company Valuation | Firm Valuation

This presentation elaborates on the valuation and analysis of companies and include the following sections:
1. Company analysis and stock selecti...
Usage (application): Business Analysis, Company Analysis | Firm Analysis

Preparing a Feasibility Study

This presentation gives an introduction into the concept of idea/business feasibility studies. The presentation consists of the following sections: Usage (application): Feasibility Analysis


Start-up Companies


Start-up Companies


Start-up Companies


Start-up Companies

Compare with: Business Incubator  |  Liquidation Value  |  Feasibility Study  |  Blue Ocean Strategy  |  Joint Venture  |  Special Purpose Vehicle

Special Interest Group Leader

You here


Return to Management Hub: Change & Organization  |  Finance & Investing  |  Strategy

More on Management  |  Return to Management Dictionary  | 


This ends our Start-up Company summary and forum.

About 12manage | Advertising | Link to us | Privacy | Terms of Service
Copyright 2016 12manage - The Executive Fast Track. V14.1 - Last updated: 24-10-2016. All names tm by their owners.