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What is Startup company
Startup company is a term designating an emerging project or beginning company which is innovative and has a great potential for growth.

Startup company (also just startup, start-up) is a term designating an emerging project or beginning company which is innovative and has a great potential for growth. The term has become very much used during the development of the dot-com companies. Currently it is used for various technology projects in various sectors (energy, life-science, information technology) with high growth potential.

Startup in practice: Startups are usually newly established companies or projects (usually up to 5 years) based on teamwork. They are at the stage of market research and development of its products, or they want to significantly expand their presence in the market (the so-called scaling). Startups have great potential for growth but also high mortality - therefore they often compete for risk financing through which they want to raise additional capital to overcome the so-called valley of death or rapidly expand in the market.

Startup Financing Cycle

Related terms and methods:

Related profession:

  • Growth hacker

Related management field:

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Last update: 11.12.2015

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