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 venture capitalists.
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