A start-up is a business in its early development stage, often focused on launching and growing a product or service.
For example, a start-up that launched a mobile app for tradespeople 8 months ago has acquired 400 paying users and is seeking $500,000 in seed funding to hire developers and launch in three new cities — classic early-stage growth that makes it both exciting and higher-risk for investors.
Why it matters: They face extreme risk but offer asymmetric upside, driving innovation and massive wealth creation if they achieve product-market fit.
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