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Some Quick Facts About Startup Companies
JUST THE FACTS 
Tags: Startup, Company, Business, Angel Investors, Venture Capital
The following is a list of common attributes associated with a startup company.
| | A startup company is a company with a limited operating history. |
| | It may effectively cease to be a startup as it passes various milestones, such as becoming profitable, or becoming publically traded in an IPO, or ceasing to exist as an independent entity via a merger or acquisition. |
| | Most startups fail. |
| | Startups are distinguished by their risk/reward profile and scalability. |
| | Compared to established businesses, startups must have lower bootstrapping costs, higher risk, and higher potential return on investment, since their cost of capital is high. |
| | Successful startups are typically more scalable than an established business, in the sense that they can potentially grow rapidly with limited investment of capital,labor or land. |
| | Venture capital firms and angel investors may help startup companies begin operations, exchanging cash for an equity stake. |
| | Financing may also be in the form of a loan, often cast as a convertible bond or warrant. |
| | In practice, many startups begin modestly funded in a "friends and family" round of investment, or simply self-funded by the founders. |
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