Important Startup Terms
In this page i will try to list and always try to update the startup related terms and definitions that we publish on our website. With a short explanation of each of these terms. (Keep in mind this page will be updated as we publish new terms).
You can click on each term to go to a separate page where the term is explained in details.
There are 2 other terms pages, one dedicated to business terms and another dedicated to finance terms.
(there might be some terms that you might miss here but are listed on one of the 2 other pages)
Thus without further ado, here’s the terms in alphabetical order:
- Accredited investor Definition: A high net worth individual that is granted permission to be involved in risky investments via VC, angel investing…
- Angel Investing & Angel Investor Definition: when a rich individual, referred to as angel investor invests in a company, in exchange of shares.
- Burnout Definition: Mental, emotional, and often physical exhaustion brought on by prolonged and or repeated stress.
- Burn Rate Definition: The amount of money operating the company costs each month.
- Bootstrapping Definition: When an entrepreneur starts a company with little capital, relying on personal finances and friends and family.
- Churn Rate Definition: The percentage of lost customers or subscribers in a certain period of time.
- Cockroach Startup Mode: Very slow growth startups. The kind of startups that are kind of more resilient and just refuse to die.
- Convertible Note: A way to raise funds as a debt that would be converted to equity on the next funding round.
- Customer Acquisition Cost: How much does it cost a company to acquire each single customer (average value).
- To Disrupt Meaning: To pause a threat to a specific industry by bringing technology in and doing things better.
- Exit Meaning: The moment the investors will be able to exit their investment.
- Gig Economy Definition: Labor market characterized by the prevalence of freelancers or workers.
- Growth Rate: The rate at which a startup company’s revenue, customer base, or other relevant metric is increasing over time.
- Hustle Meaning: To do your best to make the money needed.
- IBDA Definition: Are you making more money than you are spending (before interests , taxes, depreciation and amortization).
- Lifestyle Company or Business. Definition: Aim of sustaining a particular level of income to be able to enjoy a particular lifestyle.
- Mentor Definition: A practical teacher and adviser.
- MVP Definition: A minimum viable product is a version of a product with just enough features to attract early-adopter.
- A Pivot (pivoting): A modification of the main offer that the startup or company is offering.
- Oversubscribed: More potential investors willing to invest in the company than the company is looking to raise funds from.
- Product market fit definition: Being in a good market with a product that can satisfy that market.
- Race To The Bottom Definition: When the competition is so tough that price go down so does quality.
- Seed Capital Definition: The money needed to start a business or a startup.
- Seed Investors Definition: Accredited investors who invest at the seed round.
- Startup Definition: Young tech solution focused company.
- Trough of Sorrow (trof of sorrow) Definition: The period of struggle a startup faces following the initial excitement phase.
- Private Equity (PE) Definition: Funds are invested in private companies that are not listed on the stock exchange.
- Unfair Advantage Definition: Unique selling proposition is so strong that it is unfair advantage over the competition.
- Unicorns Definition: A privately held startup company with a valuation of over $1 billion.
- Unique Selling Proposition Definition: the one factor that makes your company better than the competition.
- Venture Capital (VC) Definition: VC firms are investment firms that provides cash in exchange of equity in startups.
- A Zebra Company /Startup: A for profit company that is for a cause (like a non profit).