Startup – A company that is in the initial stages of business, normally focused on a single product or service that the founders are trying to bring to the market
The term startup is self-explanatory, just think of someone starting up (startup) a new business focussed on a single product that they intend to bring to market.
Founders of startups may try to attract outside investment from venture capitalists or angel investors after funding initial setting-up costs themselves. Without this funding, it is difficult to bring ambitious or potentially revolutionary products to market in a large scale. It is interesting to note that roughly 20% of new businesses fail within their first year of trading. At least 90% of all business startups fail within the first 10 years. This is an amazing statistic considering how much governments help and financially support startups. A company that has been running for 50 years with a proven track record has next to no help from the government to grow.