ITG NowHome › AI glossary › Startup
What is a startup?
A startup is a young company built to grow fast, often around a new idea or product.
- Category Business & money
- Also called start-up
- Updated 20 Oct 2026
Startup, explained simply
A startup is a new company that tries to grow quickly. It usually starts with a small team and a fresh idea.
Many AI tools come from startups. They often move fast, but they can also change plans or run out of money.
This matters to you because a startup tool may be free or cheap today and different tomorrow. It is worth checking who is behind a tool.
For example, a few friends might build an AI note taker, raise money from investors, and grow from there.
On ITG Now, free tool guides and daily AI news stories often feature tools made by young startups.
Related terms
Funding roundVenture capitalAcquisitionValuationOpen source
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Questions people ask about Startup
Is every small company a startup?
No. A small shop that stays small isn't a startup. A startup aims to grow fast.
Are startup tools safe to use?
Many are fine, but check who runs them and what data they ask for. Open source tools let you read the code.
What happens if a startup shuts down?
The tool may stop working. Keep a copy of your own data so you can move on.