The term startup refers to a company in the first stages of operations.
Startups are founded by one or more entrepreneurs who want to develop a product
or service for which they believe there is demand. These companies generally
start with high costs and limited revenue, which is why they look for capital
from a variety of sources such as angel investors, venture capital funds, etc.
The investments into the startups are to
develop, and validate a scalable economic model, in the basis of which lays the
product/service provided by the company.