High current density and high brightness are critical factors for high-power and compact extended interaction oscillators (EIOs) which are operated in the terahertz (THz) waveband. The pseudospark-sourced (PS) sheet electron beam, which combines merits including high current density, a relatively big beam cross-section and no requirement for the external focusing magnetic field, is a good choice for application to high-frequency EIO. The pulse generated by the PS electron beam can last around tens of nanoseconds or even less, thus the EIO’s oscillation start-up time (OST) should be short enough. This paper researched how to reduce OST in an EIO driven by the PS sheet electron beam. The authors realized that the OST of EIO was very sensitive to the gap length under the equal period. The distribution of the electric field is optimized by adjusting the length of the gap. The strong electric field strength is conducive to the beam-wave interaction, and the OST is affected by the beam-wave interaction. When the gap length reaches a suitable value, the OST becomes the shortest. The simulation results showed the EIO’s shortest OST was 8 ns and the corresponding peak output power was 2 kW at 0.19 THz, while the current density was 500 A/cm2. When current density reached 10,000 A/cm2, the shortest OST could even be 1.9 ns.