What is startups

The growth in businesses related to information and communication technology is associated with the emergence of the concept of startup, which is the stage of a technology-based company when it is necessary to find a sustainable long-term business model, while developing a structure with a scalable potential. The startup is defined as a group of people looking for a repeatable and scalable business model, who work under highly uncertain conditions. In another definition, startup can be understood as any organization with an innovative business initiative focused on high growth, market leadership and a highly scalable business model; in other words, a model that can multiply its reach and revenue in the short term, if the product is validated. In summary, startups are small newly emerged firms that invest essentially in innovative products and business models while having little experience, a developing structure and, especially, limited capital. Such initial stage is necessary for entrepreneurs to work on their ideas and make adjustments in the specific product or service they intend to develop, taking into account the demand and financial feedback.