Glossary

A software distribution model providing access to software over the internet.

A Simple Agreement for Future Equity, a type of convertible security.

The ability of your startup to grow without proportional increases in resources.

The process of expanding your startup's operations.

An individual who identifies and refers potential investment opportunities to a venture capital firm.

A framework for Agile project management emphasizing iterative and incremental development.

The U.S. government agency overseeing securities and financial markets.

A marketplace for buying and selling existing shares of privately held companies.

The initial capital raised to support your startup in the early stages.

An individual who starts and leads multiple successful startup ventures.

The first significant round of funding for your startup.

A 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.

The 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.

The third round of funding, often directed towards achieving market dominance, global expansion, or preparing for an initial public offering (IPO).

A legally binding contract defining the rights and obligations of shareholders, addressing issues such as decision-making, ownership percentages, and exit strategies.

Investors who not only provide capital but also bring strategic value, industry expertise, and connections to help the startup grow.

Endorsements or support from reputable individuals or organizations, validating the credibility and potential of a startup to attract further investment.

A startup with a primary goal of creating positive social or environmental impact alongside financial profitability.

A controlled and strategic exit for a startup that allows for minimal negative consequences, often involving acquisition or merging with another company.

An entrepreneur who operates independently, handling all aspects of a business alone.

A publicly traded company created for the purpose of acquiring or merging with another company, offering an alternative path to going public.

The combination of technologies, tools, and programming languages used in a startup's product development.

A state in which a startup operates in secrecy to protect its intellectual property and gain a competitive advantage before launching publicly.

A performance-based fee paid to service providers, often consultants or advisors, contingent upon achieving predefined success milestones.

Ownership stake in a company earned through the contribution of time, effort, or expertise instead of monetary investment.