409a ValuationA third-party assessment of the fair market value of your startup's common stock, crucial for setting stock option prices.
83(b) ElectionA tax election that allows you to pay taxes on the value of restricted stock at the time of purchase, potentially reducing future tax liabilities.
AcceleratorA program providing mentorship, resources, and funding in exchange for equity, designed to fast-track your startup's growth.
Accredited InvestorAn individual meeting specific financial criteria, eligible to invest in your startup.
AcquihireAn acquisition primarily for acquiring skilled talent rather than products or services.
AcquisitionThe process of one company buying another, leading to a change in ownership.
AdvisorAn experienced individual offering guidance and expertise to help navigate startup challenges.
AgileA flexible project management approach that encourages adaptability and collaboration.
AlphaThe initial version of your product for internal testing and refinement.
Amazon Web Services (AWS)A cloud computing platform by Amazon, commonly used for hosting startup services.
Angel GroupA collective of angel investors pooling resources to invest in startups.
Angel InvestorAn individual providing personal funds to startups in exchange for equity.
Angel RoundThe first funding round from individual investors.
Annual Recurring Revenue (ARR)Predictable and recurring revenue from subscriptions or contracts annually.
Articles of IncorporationLegal documents defining your startup's existence and structure.
Authorized SharesThe maximum number of shares your startup can issue, as outlined in corporate documents.
B2BBusiness to Business - involving transactions between businesses.
B2B2CA business model serving both business and consumer markets.
B2CBusiness to Consumer - involving transactions between businesses and consumers.
Balance SheetA financial statement detailing your startup's assets, liabilities, and equity.
BAU (Business As Usual)Refers to standard, everyday business operations.
BetaA stage of product development following alpha testing, involving external user testing.
BHAG (Big Hairy Audacious Goal)A challenging and inspiring long-term business goal.
Board of DirectorsA group elected to oversee and represent shareholders, providing strategic guidance.
BootstrappingBuilding and growing your startup without external funding.
BridgeA short-term financing round supporting your startup until the next significant funding round.
BubbleAn economic phenomenon where the value of assets, like startups, becomes inflated.
Burn RateThe rate at which your startup uses up its available capital.
Business Plan CompetitionA competition where startups present their business plans to win funding or support.
Buying the LogoAcquiring a company primarily for its brand or intellectual property.
BuyoutThe acquisition of a company, often involving purchasing a majority of its shares.
CAC (Customer Acquisition Cost)The cost incurred to acquire a new customer.
Cap Table (Capitalization Table)A record of your startup's equity ownership and distribution among investors.
Cash Flow PositiveWhen your startup generates more cash than it spends.
Cash Flow StatementA financial statement reflecting changes in cash and equivalents due to balance sheet account adjustments.
CentaurA startup blending technology and human elements.
ChasmThe gap between early adopters and the mass market in product adoption.
Churn RateThe percentage of customers who stop using a product within a specific period.
CliffA point in time when vesting for equity options begins.
CommercializationThe process of introducing your product or service to the market.
Common StockThe basic ownership form held by founders and employees.
Convertible NoteShort-term debt that converts into equity in a future financing round.
Convertible Preferred StockPreferred stock that can be converted into common stock.
Corporate RoundA funding round led by a corporate investor.
Corporate Venture CapitalInvestments by established companies into startups.
Cottage IndustryA small-scale, decentralized business.
CrowdfundingRaising funds from a large number of people through online platforms.
CrowdinvestingInvestment model where many investors contribute small amounts of capital.
CrowdsourcingOutsourcing tasks to a large group of people or community.
Customer Development ModelA methodology for discovering and validating market opportunities.
Deal FlowThe rate at which investment opportunities come to a venture capitalist.
Deal LeadThe investor leading a funding round.
Deal MemoA document summarizing the key terms of a deal.
Debt FinancingRaising capital by taking on debt, often through loans.
DecacornA startup with a valuation exceeding $10 billion.
DeckA presentation, often a pitch deck, conveying key startup information.
Demo DayAn event where startups present their products to potential investors.
Diluted FoundersFounders whose ownership stake is reduced due to the issuance of new shares.
DilutionReduction in ownership percentage due to the issuance of new shares.
Discounted Convertible NoteA convertible note issued at a discount to the next funding round's valuation.
DisruptionA process where a new entrant transforms an industry.
Disruptive TechnologyInnovations significantly altering markets and industries.
DogfoodingThe practice of a company using its own products or services.
Down RoundA funding round with a valuation lower than the previous round.
Drag-Along RightsRights allowing majority shareholders to force minority shareholders to join in the sale of a company.
DragonAn investor with a substantial positive impact on a startup.
Due DiligenceThe investigation or research conducted before entering into an agreement or investment.
Early AdoptersThe initial customers adopting a new product or technology.
Eat Their LunchTo outperform or surpass a competitor.
EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization)A measure of a company's operating performance.
EcosystemThe network of organizations, individuals, and resources surrounding a startup.
EIR (Entrepreneur in Residence)An entrepreneur temporarily working with a venture capital firm or incubator.
Elevator PitchA concise and compelling description of your startup, short enough for an elevator ride.
EquityOwnership interest in a company, often represented by shares of stock.
EvangelistSomeone passionately promoting a product or cause.
ExitThe event where an investor or entrepreneur sells their stake in a company.
Exit StrategyA plan outlining how investors will exit their investment.
Family OfficeA private wealth management advisory firm serving high-net-worth individuals and families.
First Mover AdvantageThe competitive advantage gained by being the first to enter a market.
Flat RoundA funding round with the same valuation as the previous round.
Follow-On FundingSubsequent funding rounds after the initial investment.
Founders SharesShares held by your startup's founders.
FreemiumA business model offering basic services for free with premium features for a fee.
Friends and Family RoundAn early funding round involving contributions from close associates.
Friends, Family, and FoolsRefers to early-stage funding sources, often personal connections.
Funding RoundA specific stage in the process of raising capital for your startup.
GamifyTo incorporate game elements into non-game contexts to increase user engagement.
General PartnerA partner in a venture capital firm with management responsibilities.
GrantFunds provided to your startup without repayment, often for specific purposes.
Growth HackingStrategies focused on rapid and unconventional business growth.
HackathonsEvents where individuals collaborate intensively on software projects.
HackersIndividuals with technical skills who engage in programming and problem-solving.
HectocornA startup with a valuation exceeding $100 billion.
Hockey StickA graph displaying rapid and exponential growth.
In-Kind SupportNon-monetary resources or services provided to support your startup.
IncubatorA program providing support, resources, and mentorship to startups.
Initial Coin Offering (ICO)A fundraising method involving the creation and sale of cryptocurrency tokens.
IntrapreneurAn employee within a company who acts as an entrepreneur.
IPO (Initial Public Offering)The first sale of a company's stock to the public.
Issued SharesThe total number of shares your startup has allocated and sold.
IterationRepeating a process to improve and refine your startup's product or strategy.
KPIs (Key Performance Indicators)Quantifiable metrics used to evaluate your startup's performance.
LaunchThe introduction of your product or service to the market.
Lead InvestorThe primary investor who leads and often initiates a funding round.
LEANA methodology emphasizing efficiency and the elimination of waste in your startup's processes.
Limited PartnerAn investor in a venture capital fund with limited liability.
Liquidation PreferenceA provision giving certain investors priority in receiving proceeds during a liquidity event.
Liquidation WaterfallThe order in which investors and stakeholders receive proceeds during a liquidity event.
Liquidity EventAn event resulting in a significant change in your startup's ownership or structure.
LockupA period during which certain shareholders are restricted from selling their shares.
Loss Leader PricingSetting the price of one product low to stimulate sales of other, higher-margin products.
LTV (Lifetime Value)The predicted revenue a customer will generate over their entire relationship with your startup.
Major InvestorAn investor contributing a significant amount of capital to a funding round.
Market PenetrationThe degree to which your product is adopted by customers in a specific market.
MergerThe combination of two companies to form a new entity.
MetricsQuantifiable measures used to track and assess your startup's performance.
Micro-VCA venture capital fund with a smaller pool of capital.
MoatA competitive advantage that protects your startup from competition.
MonetizeGenerating revenue from your startup's products or services.
Monthly Recurring Revenue (MRR)The predictable and recurring revenue generated each month.
MoonshotAn ambitious and groundbreaking project or goal.
MVP (Minimum Viable Product)The most basic version of your product that satisfies early adopters.
Non-Equity AssistanceSupport provided to your startup without the exchange of equity.
Non-Technical FoundersStartup founders without a technical background.
OKRs (Objectives and Key Results)A goal-setting framework used to define and track objectives and their outcomes.
Option PoolA reserve of company shares set aside for future employee stock options.
OptionsContracts giving the holder the right to buy or sell shares at a predetermined price.
PaaS (Platform as a Service)A cloud computing service providing a platform for developing, running, and managing applications.
Party RoundA funding round with multiple investors participating without a lead.
Pay to PlayA provision requiring existing investors to participate in future funding rounds to maintain their ownership.
Peer-to-Peer LendingA lending model where individuals borrow and lend directly without an intermediary.
Phantom StockA form of equity compensation without actual ownership of company shares.
PitchA presentation pitching your startup to potential investors or partners.
Pitch CompetitionAn event where startups present their business ideas to compete for funding.
Pitch DeckA presentation summarizing your startup's business plan and potential.
PivotA strategic shift in your startup's business model or product.
PonyA secondary offering of shares by existing investors.
Portfolio CompanyA company in which a venture capital firm has made an investment.
Post-IPO DebtDebt incurred by a company after going public.
Post-IPO EquityOwnership in a company after it has gone public.
Post-IPO SecondaryThe sale of existing shares after a company has gone public.
Post-Money ValuationThe valuation of your startup after a funding round is completed.
Pre-Money ValuationThe valuation of your startup before a funding round.
Pre-Seed FundingThe initial funding round to support your startup's concept and early development.
Preferred StockStock with preferential rights and privileges.
Priced RoundA funding round where the valuation is established before investment.
Private EquityInvestment in companies that are not publicly traded.
Pro-Rata RightsThe right of existing investors to participate in future funding rounds to maintain their ownership percentage.
Problem-Founder FitAlignment between the founder's skills and the challenges your startup aims to solve.
Product-Market FitThe stage where your product satisfies the market demand.
Proof-of-ConceptDemonstrating the feasibility of your startup's concept or technology.
PrototypeA preliminary model of your product to test functionality and design.
R&D (Research and Development)The process of investigating and developing new products and technologies.
Ramen ProfitableAchieving profitability with just enough revenue to cover basic living expenses.
REG AA regulation allowing companies to offer and sell securities to the public.
REG CFA regulation allowing small companies to raise funds from the public.
REG DA regulation providing exemptions from federal securities registration requirements.
Representations and WarrantiesStatements about your startup's condition and performance made during a deal.
RetentionThe ability to retain and keep customers using your product or service.
Return on Investment (ROI)A measure of the profitability of an investment.
RevenueThe total income generated by your startup.
Revenue-Based FinancingA financing model where repayment is based on a percentage of your startup's revenue.
Right of First RefusalA contractual right to match an offer before the seller can proceed with a third party.
Run RateAn estimate of your startup's future financial performance based on current performance.
RunwayThe time your startup can operate with its current funding.
SaaS (Software as a Service)A software distribution model providing access to software over the internet.
SAFE NoteA Simple Agreement for Future Equity, a type of convertible security.
ScalableThe ability of your startup to grow without proportional increases in resources.
ScalingThe process of expanding your startup's operations.
ScoutAn individual who identifies and refers potential investment opportunities to a venture capital firm.
ScrumA framework for Agile project management emphasizing iterative and incremental development.
SEC (Securities and Exchange Commission)The U.S. government agency overseeing securities and financial markets.
Secondary MarketA marketplace for buying and selling existing shares of privately held companies.
Seed FundingThe initial capital raised to support your startup in the early stages.
Serial EntrepreneurAn individual who starts and leads multiple successful startup ventures.
Series AThe first significant round of funding for your startup.
Series A CrunchA potential bottleneck faced by startups seeking Series A funding, where the supply of early-stage capital falls short of the demand from companies transitioning from seed funding to more substantial investments.
Series BThe second round of funding for startups, typically aimed at scaling operations and expanding market presence after proving the viability of their business model in the Series A stage.
Series CThe third round of funding, often directed towards achieving market dominance, global expansion, or preparing for an initial public offering (IPO).
Shareholders' AgreementA legally binding contract defining the rights and obligations of shareholders, addressing issues such as decision-making, ownership percentages, and exit strategies.
Smart MoneyInvestors who not only provide capital but also bring strategic value, industry expertise, and connections to help the startup grow.
Social ProofEndorsements or support from reputable individuals or organizations, validating the credibility and potential of a startup to attract further investment.
Social VentureA startup with a primary goal of creating positive social or environmental impact alongside financial profitability.
Soft LandingA controlled and strategic exit for a startup that allows for minimal negative consequences, often involving acquisition or merging with another company.
SolopreneurAn entrepreneur who operates independently, handling all aspects of a business alone.
SPAC (Special Purpose Acquisition Company)A publicly traded company created for the purpose of acquiring or merging with another company, offering an alternative path to going public.
StackThe combination of technologies, tools, and programming languages used in a startup's product development.
Stealth ModeA state in which a startup operates in secrecy to protect its intellectual property and gain a competitive advantage before launching publicly.
Success FeeA performance-based fee paid to service providers, often consultants or advisors, contingent upon achieving predefined success milestones.
Sweat EquityOwnership stake in a company earned through the contribution of time, effort, or expertise instead of monetary investment.
Target MarketThe specific group of customers a startup aims to reach and serve with its products or services.
Technical FounderThe individual responsible for the technical aspects of a startup, typically possessing strong programming or engineering skills.
Term SheetA non-binding agreement outlining the key terms and conditions of an investment, serving as a basis for negotiation before drafting the final legal documents.
The X of YA format often used to describe a startup by highlighting its unique combination of attributes or characteristics.
Thought LeaderAn individual or company recognized as an authority and influential in a particular industry or field.
TractionEvidence of a startup's market success and growth, often measured by user adoption, revenue, or other key performance indicators.
Trough of SorrowA challenging phase in a startup's journey characterized by struggles, setbacks, and uncertainty.
Two Pizza RuleA management principle stating that teams should be small enough that they can be fed with only two pizzas, emphasizing efficiency and effective communication.
UI (User Interface)The visual elements and design of a software or product that users interact with.
UnicornA startup valued at over a billion dollars, reflecting its rarity and exceptional success.
USP (Unique Selling Proposition)A distinctive feature or benefit that sets a product or service apart from competitors.
UX (User Experience)The overall experience a user has when interacting with a product, encompassing usability, design, and satisfaction.
ValidationThe process of confirming the feasibility and potential success of a business idea or product through market testing or user feedback.
Valley of DeathA critical stage in a startup's development where it faces a high risk of failure due to insufficient funding or challenges in scaling.
ValuationThe estimated monetary worth of a startup, determined through various methods such as market analysis, financial metrics, and comparable company valuations.
Value PropositionThe unique value a product or service offers to customers, addressing their needs and differentiating it from competitors.
Venture Capital (VC)Investment funds provided to startups and small businesses with high growth potential in exchange for equity.
VestingThe process by which founders and employees earn ownership of their shares over time, often to incentivize long-term commitment.
VisionaryA founder with a clear and ambitious long-term vision for the company, driving innovation and strategic direction.
Vulture CapitalistAn investor who seeks distressed or struggling companies to invest in, aiming for high returns through restructuring or liquidation.
WarrantsFinancial instruments granting the holder the right to buy a company's stock at a predetermined price within a specified time frame.
WaterfallA financial model illustrating the distribution of proceeds from a liquidity event, such as an exit or IPO, among stakeholders.
YC (Y Combinator)A renowned startup accelerator that provides funding, mentorship, and resources to early-stage companies.
ZebraA startup focused on creating a sustainable and profitable business, in contrast to the "unicorn" pursuit of rapid and massive valuation.
ZombieA startup that is still operational but not achieving significant growth or success.
Zombie UnicornA startup with a high valuation but lacking the expected growth or success, resembling a stagnant or struggling business despite its initial hype.