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The earliest stage of a new business venture.
Copyright © 2012, Campbell R. Harvey. All Rights Reserved.

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.
Farlex Financial Dictionary. © 2012 Farlex, Inc. All Rights Reserved


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).

Dictionary of Financial Terms. Copyright © 2008 Lightbulb Press, Inc. All Rights Reserved.
References in periodicals archive ?
The move comes in line with the CBDT's initiatives to ease the compliance issues pertaining to start-ups. (ANI)
We actively work towards increasing the entry of female-led businesses and start-ups in non-traditional fields like technology."
With this action plan, the Philippine government aims to create high-growth and high-impact start-ups that will nurture innovation, sustain economic growth and generate large-scale employment opportunities.
All four start-ups are planning their next phase of growth, and through Hub71 they will gain access to a global network of interconnected business enablers and industry partners.
Cambodia Securities Exchange (CSX) Market Operations Department director Kim Sophanita said the availability of more private equity funds is very important, saying it would help Cambodian start-ups grow faster and make it easier for them to list on the exchange in future.
An expert from CMS, an International law firm based in 41 countries, including Singapore, used this occasion to explain the services available under their Startups Equip Programme in Sri Lanka such assector specific legal advice, introduction to relevant industry players and promotional value added services to collaborate with global investors.This Forum also facilitated sharing the capabilities and strengths of Sri Lankan start-ups and the challenges faced by them.
Under the agreement, Microsoft will provide access for selected businesses to its Microsoft for Start-ups programme, which is designed to accelerate growth and innovation using the intelligent cloud.
According to her, big companies like Apple, Samsung and others keep an eye on these incubators and the start-ups working at these incubators.
The structured programme will allow start-ups to rapidly scale up their businesses and access a broader spectrum of support in Bahrain, said a statement.
We have simply started with the 100 Arab start-ups because of this event and because of the amount of talent we have seen in this region and we want to leverage on this talent, but the idea is this is open for the world," Khalfan Belhoul, chief executive of the Dubai Future Foundation, told The National at the World Economic Forum on Sunday.
They will be able to access FbStart, a global programme designed to help start-ups build and grow their businesses, and encouraged to connect and support other developers and entrepreneurs through Developer Circles, a community-driven programme for developer collaboration.