What is a Startup?

14 December, 2016

A startup is a new company, even embryonic or still in the seed stage, which promotes a promising project, related to the development of an innovative business idea. Usually is technology­ based, but not necessarily, and it is based on an entrepreneurial spirit, in constant search for an innovative business model. Startup companies are distinguished from others by creating highly scalable business models, based on innovative ideas. Startups are not only internet companies, although they are in that field more frequently  since the costs of creating a software company are lower than creating a “physical” industry or business. Beyond being a young company and launching an innovative idea in the market, another characteristic of a startup is having risk involved in the business, but usually it is also an enterprise with lower initial costs and it’s highly scalable, i.e., has an expectation of major growth when successful.

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