A startup is defined as a company in its initial stages of operations with limited history and revenue. Startups often require funding from sources like seed capital from angel investors, venture capitalists for early and expansion stages, and private equity firms for growth. Listing on the BSE SME exchange provides startups with post-issue capital under Rs. 10Cr an avenue to raise funds through an IPO with support from merchant bankers who underwrite the issue and act as market makers for 3 years.