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Asked a question 4 years ago

What are startups?

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Puru BhatnagarTop Contributor
Business Analyst, Entrepreneur, Business developer, Marketer

Startups are those companies that are in their very early stage and have just completed its ideation and validation phase.

Startup termed was coined in 1990, the startups have a potential to grow at a very fast rate in much less time.

This term come into existence few decade back when the dotcom boom was about to get happened, at that time many venture has come forward to invest in many startups.

There is no such parameter to categories any enterprise as startup, previously this term was used for big technology company.

In today’s time startup term is basically used to denote any company which are in their early stage, even without any revenue stream, but are looking for investors and are in the process of fund raising.

Generally startups founders try to find investors so that they can raise money for the starting up of their company; either they look for angel investors or venture capitalist that can fund their startups.

Startup is needed to register under company act and is governed by laws.

Startup founder need to manage different things from bring up the idea to make it available to the market, taking financial risk in the beginning so as to have profit in future.

In order to have a startup one should be determined enough to face any challenge that come in their path.

A startup is a company that is in the first stage of its operations. These companies are often initially bankrolled by their entrepreneurial founders265 as they attempt to capitalize on developing a product or service259 for which they believe there is a demand.

Due to limited revenue269 or high costs, most of these small-scale operations are not sustainable in the long term without additional funding from venture capitalists275.