Start-up Company

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Description of Start-up Company. Explanation.




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.

Startup Business Strategy Frame

Startup success is greatly attributed to pre-startup phase planning. Startups develop business plans to pitch their ideas to secure funding and or partners.

Here you can find a useful strategy template for a startup strategy.

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 Special Interest Group

Special Interest Group (55 members)

Start-up Companies Forum  

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Best Practices - Start-up Companies

Expert Tips - Start-up Companies

Aligning Compensation Plans for the Sales Force of Start-Ups


Resources - Start-up Companies

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


Establishing an Innovative Social Enterprise


Entrepreneurial Finance: Sources Of Funding


Business Valuation | Company Valuation | Firm Valuation


Preparing a Feasibility Study


News about Start-up Companies


Videos about Start-up Companies


Presentations about Start-up Companies


Books about Start-up Companies


More about Start-up Companies


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

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