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.