Startup

A startup is a company or organization in its early stage that is focused on developing a scalable business model, typically under conditions of high uncertainty and rapid growth. Startups are often associated with innovative products or services, especially in technology, software, and digital platforms, and aim to reach large markets quickly rather than serving a local niche alone.

Key characteristics include a focus on experimentation and iteration, a search for product–market fit, and a business model designed to scale rapidly. Startups frequently use short development cycles, pivot when needed, and pursue leveraging network effects, platforms, or data-driven approaches to create a competitive advantage.

Funding typically evolves from the founders’ own resources to external investment. Common stages include angel financing, seed rounds, and venture capital, along with accelerators and incubators. Revenue and user metrics, such as monthly active users, growth rate, customer acquisition cost, and lifetime value, guide decision-making and fundraising.

The startup lifecycle includes ideation, validation, initial product launch, early traction, and scaling, but many ventures fail or pivot. Successful startups often reach profitability or are acquired or go public after achieving sustained growth. Ecosystems—universities, mentors, accelerators, investors, and supportive policy—shape opportunities and risk.

Distinctions from small businesses lie in growth ambition, scalable business models, reliance on external capital, and potential for rapid expansion beyond local markets. Startups may transition into mature companies or become casualties of market dynamics, but they commonly contribute to innovation and job creation in the economy.