Startups have their own language, filled with buzzwords, acronyms, and industry-specific terms. If you’re new to the Startup world, this jargon can feel overwhelming. But don’t worry—I’ve got you covered!
In this guide, I’ll break down 100+ essential Startup terms that every entrepreneur, investor, or Startup enthusiast should know. Let’s dive in!
1. Startup Funding & Investment Terms
1.1 MVP (Minimum Viable Product)
A basic version of a product with just enough features to attract early adopters and validate an idea.
1.2 Pivot
A significant change in a start-up’s business model or product direction based on customer feedback or market demand.
1.3 Bootstrapping
Starting a business with little or no external funding, relying on personal savings and early revenue.
1.4 Burn Rate
The speed at which a start-up spends its cash reserves before becoming profitable.
1.5 Runway
The amount of time a start-up has before running out of money, based on its current burn rate.
1.6 Unicorn
A start-up valued at over $1 billion. Think of companies like Airbnb, Uber, or Stripe.
1.7 Term Sheet
A non-binding document outlining the terms and conditions of an investment deal between a start-up and investors.
1.8 Angel Investor
A wealthy individual who provides capital to start-ups in exchange for equity.
1.9 Venture Capital (VC)
A form of private equity financing where investors provide funds to high-potential start-ups in exchange for ownership stakes.
1.10 Seed Funding
The initial capital raised by a start-up to develop its product and prove its business model.
1.11 Series A, B, C Funding
Different stages of investment rounds where start-ups raise capital for growth, expansion, or scaling.
1.12 Cap Table
A document that outlines a company’s ownership structure, including shares held by founders, investors, and employees.
1.13 Equity Dilution
When a start-up raises new funding, existing shareholders’ ownership percentage decreases because more shares are issued.
1.14 SAFE (Simple Agreement for Future Equity)
An investment contract that allows start-ups to raise funds without setting a valuation immediately.
1.15 Convertible Note
A type of loan that converts into equity in the future, often used in early-stage funding.
2. Business & Growth Strategy
2.1 Product-Market Fit
When a start-up’s product meets the needs of its target customers, leading to strong demand and growth.
2.2 Traction
Evidence that a start-up’s product is gaining market interest, measured through users, revenue, or engagement.
2.3 Growth Hacking
Innovative, low-cost marketing strategies designed to rapidly grow a start-up’s customer base.
2.4 Scale-Up
A start-up that has validated its business model and is now focusing on rapid growth.
2.5 Incubator
A program that supports early-stage start-ups with mentorship, resources, and office space.
2.6 Accelerator
A structured program that helps start-ups grow quickly, often providing funding, mentorship, and networking opportunities.
2.7 Disruption
When a start-up introduces a new product or service that significantly changes an industry (e.g., Netflix disrupting traditional TV).
2.8 Blue Ocean Strategy
Creating a new market with little competition instead of competing in an existing, crowded market.
2.9 Monetization Strategy
How a start-up plans to generate revenue from its product or service.
3. Marketing & Customer Metrics
3.1 CAC (Customer Acquisition Cost)
The cost of acquiring a new customer, including marketing and sales expenses.
3.2 CLTV (Customer Lifetime Value)
The total revenue a business expects to earn from a customer over their entire relationship.
3.3 Churn Rate
The percentage of customers who stop using a product or service within a given period.
3.4 Retention Rate
The percentage of customers who continue using a product over time.
3.5 Stickiness
A measure of how often users return to a product, showing strong engagement.
3.6 Viral Coefficient
A metric that shows how many new users are acquired through referrals from existing customers.
3.7 A/B Testing
A marketing experiment where two versions of a product or campaign are tested to see which performs better.
3.8 Go-To-Market Strategy
A start-up’s plan for launching and selling its product.
3.9 NPS (Net Promoter Score)
A measure of customer satisfaction and loyalty, based on how likely users are to recommend a product.
4. Start-up Financial Terms
4.1 Revenue Streams
Different ways a start-up makes money (e.g., subscriptions, ads, one-time purchases).
4.2 ARR (Annual Recurring Revenue)
Revenue that a start-up expects to earn annually, commonly used in SaaS businesses.
4.3 MRR (Monthly Recurring Revenue)
Revenue a start-up earns on a monthly basis from subscriptions or recurring payments.
4.4 Break-Even Point
The point where a start-up’s revenue covers all expenses, meaning it is no longer losing money.
4.5 Burn Multiple
A measure of how efficiently a start-up is using its cash to generate revenue.
4.6 Valuation
The estimated worth of a start-up, usually determined during funding rounds.
4.7 Post-Money Valuation
A start-up’s valuation after receiving new investment.
4.8 Pre-Money Valuation
A start-up’s valuation before receiving new investment.
5. Business Models & Market Strategies
5.1 B2B (Business-to-Business)
A business model where a company sells products or services to other businesses.
5.2 B2C (Business-to-Consumer)
A business model where a company sells products directly to individual consumers.
5.3 D2C (Direct-to-Consumer)
A business model where brands sell directly to customers without intermediaries.
5.4 TAM (Total Addressable Market)
The total demand for a product or service in a given industry.
5.5 Land and Expand
A strategy where a company starts with a small sale and grows within an organization by expanding its services.
Final Thoughts
The start-up world moves fast, and understanding its jargon is crucial for success. Whether you’re an entrepreneur, investor, or enthusiast, these terms will help you navigate conversations, pitch meetings, and growth strategies with confidence.
Are there any terms you’d like me to explain further? Drop a comment below! 🚀
