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Start-Up

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Start-up
The earliest stage of a new business venture.

Start-Up Company
A company in its earliest stage of development, usually before its IPO. Start-up companies concentrate on product development and build-up of capitalization. Nearly all start-up companies operate at a loss, at least at first. Some start-ups go through a period where they have no revenue at all. Start-ups spend their time perfecting their business plans and developing products that will eventually be sold on the open market. Most start-ups rely on venture capital or loans to continue operations during this phase. See also: Payout period, Dot-com bubble.

Start-up. While any new company could be considered a start-up, the description is usually applied to aggressive young companies that are actively courting private financing from venture capitalists, including wealthy individuals and private equity partnerships. In many cases, the start-ups plan to use the cash infusion to prepare for an initial public offering (IPO).



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It is often useful for new business start-ups as a new business would not have enough data to produce audited financials that are required for normal business loans.
Andreessen and Ben Horowitz, former chief executive of Opsware, said the firm, Andreessen Horowitz, "will fund technology start-ups with investments ranging from 50,000 dollars and 50 million dollars.
TheFunded lets start-up chief executives rate venture capitalists and share stories of dealings with them.
 
 
 
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