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.

KEY TAKEAWAYS
A startup is a company that's in the initial stages of business.
Founders normally finance their startups and may attempt to attract outside investment before they get off the ground.
Funding sources include family and friends, venture capitalists, crowdfunding, and loans.
Startups must also consider where they'll do business and their legal structure.
Startups come with high risk as failure is very possible but they can also be very unique places to work with great benefits, a focus on innovation, and great opportunities to learn.