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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.
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A new business.
Wall Street Words: An A to Z Guide to Investment Terms for Today's Investor by David L. Scott. Copyright © 2003 by Houghton Mifflin Company. Published by Houghton Mifflin Company. All rights reserved. All rights reserved.