The model of startup companies, usually, associated with the boom off the dot-com companies and it explored by many authors in modern literature! One of the best books in the area, is the book of Diana Kander‘s “All In StartUp” and I recommend it highly for anyone want some more information about the topic.
Essentially, a startup defines a company:
that is in the first stage of its operations. These companies are often initially bank rolled by their entrepreneurial founders as they attempt to capitalize on developing a product or service for which they believe there is a demand. Due to limited revenue or high costs, most of these small scale operations are not sustainable in the long term without additional funding from venture capitalists. (Investopedia: Startup)
For this reason, a new entrepreneur is essential to have his or her option open and to reassure the financing of his company!
A person, most suitable on this area, is Reid Hoffman. Reid is Co-Founder and Executive Chairman of LinkedIn, investor, product strategist, and a partner at Greylock among other things. For this reason, he is one of the most suitable persons to talk about the financing of the startup companies!
In this presentation, he talks about the “7 Myths of Startup Financing” and explains a lot of the issues related to this subject!
An excellent reading for any entrepreneur (present or would be) and a must read for anyone wants to start from an idea and build a company!