Whether you’re an aspiring entrepreneur, investor, or simply interested in the startup ecosystem, understanding the key terms and jargon is essential for success. From MVPs to VCs, and everything in between, this guide will help you navigate the fast-paced world of startups with ease. Dive in to explore definitions, acronyms, and concepts that drive innovation and growth in the entrepreneurial landscape.
An Accelerator Programme is a startup support programme designed to accelerate the growth of early-stage companies by providing mentorship, office space, resources, and often seed investment in exchange for equity.
Examples: Seedcamp, Techstars.
Related terms: Startup incubator, business accelerator.
Acquisition is the process by which one company purchases another, gaining control over the acquired company’s operations and assets. Common in mergers and acquisitions (M&A) for scaling businesses.
Related terms: Merger, buyout.
Agtech is the collection of technologies that provide the agricultural industry with the tools, data and knowledge to make more informed, timely on-farm decisions and improve productivity and sustainability.
An Angel Investor is a high-net-worth individual who provides financial backing to startups in exchange for ownership equity or convertible debt. Often involved at the early pre-seed or seed stage.
Related terms: Venture capital, private equity, seed funding.
An Angel Network is a group of angel investors who collaborate to pool their capital and invest in startups, offering not only funding but often mentorship and expertise.
Related terms: Angel investor, venture capital, seed funding.
B2B is a business model where a company sells products or services directly to other businesses rather than individual consumers.
Examples: Slack, HubSpot.
Related terms: B2C, SaaS, enterprise solutions.
B2C is a business model where a company sells products or services directly to individual consumers.
Examples: Amazon, Netflix.
Related terms: E-commerce, DTC (direct-to-consumer), B2B.
B2B2C is a business model that involves companies providing products or services to another business that then markets and sells them to individual consumers.
Examples: Shopify (enabling businesses to sell directly to consumers).
Related terms: B2B, B2C, partnership marketing.
B2G is a business model where companies provide products, services, or solutions to government agencies and institutions.
Examples: Palantir, IBM.
Related terms: Government contracts, public sector, procurement.
Bootstrapping is the practice of launching and growing a startup without external funding, relying on personal savings or reinvested revenue. Often associated with lean startups.
Related terms: Self-funding, lean startup, early-stage startup financing.
A Bridging Round is a round of funding designed to bridge the gap between larger funding rounds, often used to help startups meet short-term financial needs while they prepare for the next major investment.
Related terms: Seed funding, Series A, equity financing.
Burn Rate is the rate at which a startup spends its available cash to cover overheads and operating expenses before becoming profitable. A critical metric for determining a startup’s runway.
Related terms: Cash flow, runway, operating costs.
A Cap Table is a detailed document that outlines the equity ownership of a startup, showing each stakeholder’s percentage of ownership, types of shares, and any convertible securities. Essential for understanding company ownership structure.
Related terms: Equity, shares, stock options.
Crowdfunding is a method of raising small amounts of capital from a large number of individuals, typically via online platforms like Kickstarter or GoFundMe, to fund new products, services, or businesses.
Related terms: Equity crowdfunding, peer-to-peer lending, fundraising.
Debt Fundraising is a type of fundraising where startups raise capital by borrowing money (debt) rather than selling equity, often through loans or convertible debt instruments.
Related terms: Convertible notes, venture debt, equity financing.
A Demo Day (or Demo Night) is an event where startups that have participated in an accelerator or incubator programme present their products, business models, and traction to an audience of investors, mentors, and the public. The goal is often to attract investment or partnerships.
Related terms: Pitch day, investor pitch, accelerator programme.
Disruption is the introduction of an innovative product, service, or technology that significantly alters or displaces traditional industries or business models.
Examples: Uber disrupted the taxi industry; Netflix disrupted the DVD rental business.
Related terms: Innovators, market disruption, technological innovation.
Due Diligence is the process that potential investors undertake to evaluate a startup’s financials, business model, legal liabilities, and overall viability before investing.
Related terms: Investment process, startup valuation, risk assessment.
An Early Stage Startup is a startup in its early phases of development, often working on validating the business model, acquiring initial customers, and raising seed or pre-seed funding.
Related terms: Seed stage, pre-seed, startup lifecycle.
Equity is the ownership interest in a startup, represented by shares of stock. Founders, investors, and employees may all hold equity in exchange for their contributions or capital.
Related terms: Stock options, ownership, shares.
Enterprise Value is the total market value of a company, calculated as market capitalisation plus debt, minus cash and cash equivalents. In startup ecosystems, the combined Enterprise Value represents the sum of all startup valuations within that ecosystem, including private company valuations from recent VC rounds, realised exit values, and public company valuations. Enterprise Value Growth measures the change in this combined value over a given period.
Related terms: Startup valuation, market capitalisation, equity value.
Exit Multiple is a valuation metric used to assess the profitability of a startup’s exit, such as through an acquisition or IPO, by comparing the exit price to earnings or revenue.
Related terms: Acquisition, startup exit, IPO.
Exit Strategy is a strategic plan for founders and investors to liquidate their shares in the company, typically through an acquisition or initial public offering (IPO).
Related terms: Mergers and acquisitions, IPO, buyout.
Freemium is a pricing strategy where the basic version of a product or service is offered for free, while premium features or services require payment.
Examples: Spotify, Dropbox.
Related terms: SaaS, subscription model, paid tiers.
A Startup Founder is an individual or group of individuals who establish a startup, develop the business model, and are often involved in all aspects of growing the company.
Related terms: Entrepreneur, co-founder, startup CEO.
A Funding Round is a specific stage in a startup’s financing journey where it raises capital from investors, usually designated as seed, Series A, B, or C based on the company’s maturity.
Related terms: Seed funding, Series A, venture capital.
A General Partner is the individual or firm responsible for managing a venture capital fund and making investment decisions. GPs raise capital from limited partners (LPs) and invest in startups.
Related terms: LP (Limited Partner), venture capital, VC firm.
A Go-to-Market Strategy is a plan outlining how a startup will introduce its product or service to the market, target customers, and achieve a competitive advantage.
Related terms: Market entry strategy, customer acquisition, product launch.
Growth Hacking is a marketing and product development strategy focused on rapidly growing a user base or generating revenue with minimal resources, often using unconventional, creative methods.
Related terms: Digital marketing, viral marketing, user acquisition.
Hockey Stick Growth is a startup’s revenue or user growth that starts off slow but experiences a rapid, exponential increase over time, resembling a hockey stick on a graph.
Related terms: Exponential growth, startup scaling, rapid growth.
Hyperscaling is a rapid business growth model focused on achieving massive scaling in a short period of time, often requiring significant capital investment.
Related terms: Scaling up, venture funding, unicorn startups.
A Startup Incubator is a programme that helps early-stage startups by providing resources, mentorship, office space, and sometimes funding. Incubators typically take no or minimal equity.
Examples: Y Combinator, 500 Startups.
Related terms: Business accelerator, startup mentoring, seed funding.
Intellectual Property is legal rights protecting inventions, designs, brand names, or creative works from being copied or used without permission. Critical for startups in technology or creative sectors.
Related terms: Patents, trademarks, copyrights.
Investment Instruments are financial tools used in startup fundraising, such as equity, convertible notes, SAFE (Simple Agreement for Future Equity), and debt financing.
Related terms: Equity financing, convertible debt, venture capital.
A Joint Venture is a business arrangement where two or more companies agree to collaborate and share resources for a specific project or venture.
Related terms: Strategic partnership, co-venture, merger.
A Key Performance Indicator is a quantifiable measure used to evaluate a startup’s performance in achieving business objectives, such as customer acquisition, revenue growth, or product usage.
Related terms: Series C, venture capital, scaleup.
Late Stage Funding refers to investment rounds (typically Series C and beyond) for mature startups that have achieved significant growth, market traction, and revenue. These rounds focus on scaling operations, expanding to new markets, or preparing for an exit such as an IPO or acquisition.
Related terms: Series C, growth equity, pre-IPO funding.
Lean Startup is a startup methodology that emphasises creating a minimum viable product (MVP), using customer feedback for continuous improvement, and minimising wasted resources.
Related terms: MVP, pivot, product-market fit.
A Letter of Offer is a formal document issued by an investor or company to a startup or individual, outlining the terms and conditions of an investment, employment, or business partnership. It typically serves as a precursor to a formal contract.
Related terms: Term sheet, contract negotiation, legal agreements.
A Limited Partner is an investor who contribute capital to a venture capital fund but have limited involvement in its day-to-day management. LPs typically include institutional investors, pension funds, or high-net-worth individuals.
Related terms: GP (General Partner), venture capital, institutional investor.
Liquidity is the ability to convert assets or shares into cash easily, important for founders and investors looking to exit.
Related terms: Exit strategy, cash flow, marketability.
Market Fit is when a startup’s product or service meets the needs of a specific target market, showing signs of demand and market acceptance.
Related terms: Product-market fit, customer demand, market validation.
A Minimum Viable Product is a simple version of a product that includes just enough features to attract early adopters and gather feedback for future development.
Related terms: Lean startup, prototype, product development.
A Non-Disclosure Agreement is a legal contract used by startups to protect confidential information shared with investors, employees, or partners from being disclosed to others.
Related terms: Confidentiality agreement, legal protection, trade secrets.
Networking is the process of building professional relationships within the startup ecosystem to gain access to resources, mentorship, partnerships, or investment opportunities.
Related terms: Entrepreneurial networking, business relationships, mentorship.
Open Innovation is a business model encouraging startups to utilise external ideas and resources, as well as collaborate with external partners, to accelerate innovation.
Related terms: Collaboration, innovation management, co-creation.
An Option Pool is a reserve of equity set aside for future employees, advisors, or consultants, used to incentivise and attract top talent to a startup.
Related terms: Equity compensation, stock options, employee shares.
A Pitch Day (or Pitch Night) designated event where startups pitch their business ideas, products, or services to a panel of judges, investors, or potential partners, aiming to secure funding or other support.
Related terms: Demo day, investor pitch, startup presentation.
A Pivot is a strategic shift in a startup’s business model, product offering, or target market to better align with market demand or improve business viability.
Examples: Twitter pivoted from podcasting to microblogging.
Related terms: Business model change, market adaptation, startup agility.
A Pre-Accelerator Programme is a structured programme aimed at helping very early-stage startups refine their ideas, develop prototypes, and prepare for formal accelerator programmes or seed investment.
Related terms: Accelerator programme, startup incubator, seed funding.
Pre-Seed Funding is the earliest stage of startup funding, typically sourced from founders’ savings, angel investors, or early-stage venture capitalists to validate the business idea.
Related terms: Seed funding, angel investment, early-stage funding.
Product-Market Fit is when a startup’s product meets the needs of its target market, evidenced by strong demand, user retention, and scalability potential.
Related terms: Market validation, MVP, customer traction.
Problem-Solution Fit is when a startup identifies a real problem in the market and offers a solution that effectively addresses that problem, serving as a precursor to product-market fit.
Related terms: Product-market fit, market validation, MVP.
A Quorum is the minimum number of stakeholders required to hold a meeting or vote on important company decisions.
Related terms: Voting rights, board of directors, corporate governance.
A Quick Ratio is a financial metric used to evaluate a startup’s ability to meet short-term liabilities with its most liquid assets. Also known as the “acid test ratio.”
Related terms: Liquidity ratio, cash flow, solvency.
Runway is the amount of time a startup has before it runs out of cash, based on its current burn rate. Critical for understanding how long a company can operate before needing additional funding.
Related terms: Burn rate, cash flow, financial planning.
Raising Capital is the process of securing financial investment from external sources, such as angel investors, venture capitalists, or crowdfunding, to fund business growth.
Related terms: Seed funding, Series A, venture capital.
Software-as-a-Service is a software delivery model where users access software via the internet, typically through a subscription service, without needing to install or maintain it locally.
Examples: Salesforce, Dropbox.
Related terms: Cloud computing, subscription service, XaaS.
SAFE is a financial instrument used in startup fundraising where investors provide capital in exchange for the right to receive equity in the company at a future date, typically when the company raises its next round of funding.
Related terms: Convertible notes, equity financing, fundraising instruments.
A SAFE Note is a type of investment contract similar to a convertible note, but without the debt component. It allows investors to invest in a startup with the agreement to receive equity in the company during a future equity financing round, usually at a discounted rate.
Related terms: SAFE, convertible note, equity investment.
Seed Funding is the initial round of capital provided to a startup to develop a product and gain early traction, typically raised from angel investors or venture capitalists.
Related terms: Pre-seed funding, Series A, venture capital.
Series A Funding is the first significant round of venture capital funding for startups that have demonstrated product-market fit and are ready to scale.
Related terms: Seed funding, Series B, venture capital.
A Startup is an innovative technology-based business that can scale rapidly and capture global markets.
Examples of technology-based businesses include: software and application development (Artificial Intelligence (AI), blockchain, big data analytics, e-commerce or marketplaces, augmented or virtual reality, Software as a Service (SaaS)), hardware, advanced manufacturing, sensor technology, robotics, autonomous vehicles, quantum technology, deep tech, and genomics and life sciences (including biotech & medtech).
Once a startup has demonstrated accelerated growth sufficiently it becomes a scaleup.
Related terms: Scaleup, unicorn.
A Scaleup is a startup that has demonstrated strong product-market fit, achieved significant growth, and is now focused on expanding operations, market reach, and revenue.
Related terms: Startup scaling, Series A, growth stage.
A Tech Stack is the combination of programming languages, frameworks, and tools used to build a startup’s product or service, including both front-end and back-end technologies.
Related terms: Development stack, full-stack development, software architecture.
A Term Sheet is a non-binding agreement outlining the key terms and conditions of a potential investment deal between a startup and an investor.
Related terms: Investment agreement, deal terms, equity funding.
UI is the visual and interactive elements of a product or application that users engage with, including buttons, menus, layouts, and graphics. UI design focuses on the aesthetics and presentation of a product.
Related terms: UX (User Experience), product design, front-end development.
A Unicorn is a privately held startup valued at over $1 billion. Unicorns are rare and often represent highly successful, high-growth businesses.
Related terms: Billion-dollar startup, high-growth startup, tech unicorn.
User Acquisition is the process of attracting and converting new users to adopt a startup’s product or service, critical for growth.
Related terms: Customer acquisition, growth hacking, digital marketing.
UX is the overall experience a user has when interacting with a product, service, or system, encompassing usability, accessibility, and satisfaction. Critical for product development and customer retention in startups.
Related terms: UI (User Interface), product design, user-centered design.
Startup Valuation is the process of determining the worth of a startup based on its market potential, assets, revenue, and investor interest.
Related terms: Market valuation, startup equity, investment valuation.
Venture Capital is a form of private equity financing provided to early-stage, high-potential startups in exchange for equity. Venture capitalists seek to invest in businesses with significant growth potential.
Related terms: Angel investor, Series A, equity financing.
Wearables are devices that can be worn by users, such as smartwatches, fitness trackers, and augmented reality (AR) glasses, often connected to apps or the internet.
Related terms: IoT (Internet of Things), health tech, connected devices.
A Wireframe is a visual guide or blueprint used during the early stages of app or website development to represent the structure, layout, and functionality of a user interface.
Related terms: UX design, app development, product design.
Anything-as-a-Service is a collective term that refers to services delivered over the internet, rather than traditional on-premises delivery models. Common examples include SaaS (Software as a Service) and IaaS (Infrastructure as a Service).
Related terms: Cloud computing, SaaS, subscription services.
Yield is the return on an investment, often expressed as a percentage, representing the earnings generated over a specific period of time.
Related terms: ROI (Return on Investment), profit margin, investment returns.
Year-Over-Year Growth is a comparison of a startup’s performance metrics, such as revenue or user growth, over the same period from the previous year.
Related terms: Growth metrics, financial performance, business analytics.
A Zombie Startup is a startup that continues to operate but with little to no growth, often struggling to secure additional funding or gain significant market traction.
Related terms: Stagnant startup, underperforming business, startup failure.
A Zebra Startup is a startup that balances profitability and social impact, aiming for sustainable growth rather than becoming a high-growth unicorn.
Related terms: Social enterprise, sustainable business, impact startup.
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