Legal Definitions - development-stage company

A development-stage company is a type of company that focuses on establishing a new business where the primary operations have not yet begun or are not generating significant revenue. These companies devote most of their efforts to developing their business.

For example, a startup that is still in the process of developing its product or service and has not yet started generating significant revenue is a development-stage company. Another example is a company that has started operations but is still in the early stages of growth and has not yet reached a stable revenue stream.

Development-stage companies are often riskier investments because they have not yet proven their business model or generated significant revenue. However, they also have the potential for high returns if they are successful in establishing their business.