Growth & VC Slang
Vision
A startup's vision is an aspirational, long-term goal that outlines the company's ultimate purpose and desired impact on the world, such as connecting people or revolutionizing industries.
Mission
The mission of a startup is the primary focus that addresses the most critical aspects of the vision, taking on the biggest lever of the vision without being overwhelmed by its entirety.
Strategy
A startup's strategy is a comprehensive plan that outlines the methods, tactics, and roadmap employed to execute its mission, working towards achieving the overarching vision.
OKRs
Objectives and Key Results (OKRs) are a goal-setting framework used by organizations to define ambitious objectives and measure progress through quantifiable key results, enabling teams to align and focus on priorities.
Scalability
Scalability refers to a business's ability to handle increased demand, grow, and expand its operations while maintaining or improving performance and efficiency.
Traction
Traction is a measure of a startup's progress and momentum, often demonstrated through customer growth, revenue, user engagement, or market validation, which can be used to attract investors and partners.
Go-to-Market Strategy
A go-to-market (GTM) strategy is a comprehensive plan outlining how a company will deliver its products or services to customers, encompassing marketing channels, sales techniques, and distribution methods.
Business Model
A business model is the way a company generates revenue and creates value for its customers, detailing the products or services offered, target market, pricing, and sales strategy.
Pricing Strategy
A pricing strategy is the approach a business takes to set the price for its products or services, considering factors such as production costs, competition, and target customer segments.
Embedded Finance
Embedded finance refers to the integration of financial services into non-financial platforms, products, or services. This can include services such as payments, lending, insurance, and wealth management, all integrated into a single platform or product. The concept of embedded finance allows companies to offer financial products and services to their customers without the need for a traditional financial institution or bank. It provides a more streamlined and efficient experience for customers and can open up new revenue streams for businesses.
Total Addressable Market (TAM)
Total Addressable Market (TAM) represents the maximum revenue opportunity for a product or service, considering the entire potential market size.
Serviceable Available Market (SAM)
Serviceable Available Market (SAM) is the segment of the total addressable market that a company can realistically serve, given its current capabilities and resources.
Serviceable Obtainable Market (SOM)
Serviceable Obtainable Market (SOM) is the portion of the serviceable available market that a company can realistically capture and serve, taking into account competition and market share.
Compound Annual Growth Rate (CAGR)
Compound Annual Growth Rate (CAGR) is the average rate at which an investment, revenue, or other metric grows over a specific period of time, typically expressed as a percentage.
Ideal Customer Profile (ICP)
An ideal customer profile is a detailed description of the perfect customer for a company's product or service, based on market research, data analysis, and buyer personas.
Demand Generation
Demand generation is the process of creating awareness and interest in a product or service through marketing activities, such as content marketing, social media marketing, and search engine optimization (SEO).
Demand Creation
Demand creation is the process of stimulating demand for a product or service through marketing and promotional activities, targeting both existing and potential customers.
Lead Generation
Lead generation is the process of identifying and engaging potential customers for a business, using tactics like email marketing, paid advertising, and networking events.
Bullseye Framework
The Bullseye framework is a structured approach to identifying, testing, and optimizing the most effective marketing channels for a business, helping startups find the best ways to reach their target audience.
Ansoff Matrix
Ansoff Matrix is a strategic planning tool used to help businesses determine their product and market growth strategy. It consists of a four-quadrant grid that categorizes market and product strategies as market penetration, market development, product development, and diversification. The matrix helps businesses evaluate potential growth opportunities by assessing the risks associated with each strategy. It is named after Igor Ansoff, a Russian-American mathematician and business theorist who developed the matrix in 1957.
Major Account / Enterprise Sales
Major account or enterprise sales refers to the process of selling products or services to large organizations, corporations, or government agencies, typically involving complex and lengthy sales cycles, customized solutions, and high-value deals.
Buyer Journey
The buyer journey is the process a customer goes through from becoming aware of a product or service to making a purchase decision, encompassing stages such as awareness, consideration, and conversion.
AARRR Funnel (Acquisition, Activation, Revenue, Retention, Referral)
The AARRR funnel, also known as the Pirate Metrics, is a customer lifecycle framework used by startups to track and optimize key performance indicators (KPIs) across five stages: Acquisition (attracting new users), Activation (getting users to take a desired action), Revenue (generating income from users), Retention (keeping users engaged), and Referral (encouraging users to invite others).
Go-to-Market Motion
Go-to-market motion refers to the approach and tactics a company uses to engage with its target market, deliver value through its products or services, and generate revenue, encompassing marketing, sales, and customer success strategies.
Target Account
A target account is a specific company or organization that a business has identified as an ideal customer based on criteria such as industry, size, location, and revenue potential, often pursued through account-based marketing (ABM) strategies.
Target Buyer
A target buyer is an individual or group within a target account who holds decision-making authority or influence over the purchase of a product or service, often including executives, managers, or other key stakeholders.
Social Media Marketing
Social media marketing is the use of social media platforms such as Facebook, Twitter, and Instagram to promote a brand, product, or service, engage with audiences, and drive website traffic, leads, and sales.
Search Engine Advertising
Search engine advertising, also known as pay-per-click (PPC) advertising, is a digital marketing strategy where businesses bid to have their ads displayed on search engine results pages (SERPs) when users search for specific keywords or phrases.
Search Engine Optimization (SEO)
Search engine optimization (SEO) is the process of improving a website's visibility and organic ranking on search engine results pages (SERPs) by optimizing its content, structure, and other technical aspects, with the goal of increasing web traffic and attracting more users.
Social Ads
Social ads are paid advertisements displayed on social media platforms such as Facebook, Instagram, LinkedIn, and Twitter, targeting users based on their demographics, interests, behaviors, and connections.
Paid Ads
Paid ads, or online advertising, refers to the practice of paying to display promotional content on websites, search engines, or social media platforms, with the goal of driving traffic, generating leads, and increasing sales.
Affiliate Marketing
Affiliate marketing is a performance-based marketing strategy where businesses partner with affiliates (individuals or organizations) who promote their products or services in exchange for a commission on resulting sales or leads.
Podcast
A podcast is a digital audio or video file, usually part of a series, that can be downloaded or streamed on a variety of devices, often used for informational or entertainment purposes, and can serve as a marketing tool for businesses to engage with their target audience.
Annual Recurring Revenue (ARR)
Annual Recurring Revenue (ARR) is a financial metric used by subscription-based businesses to measure the total annualized revenue generated from recurring sources, such as subscriptions or maintenance contracts, excluding one-time or non-recurring payments.
Monthly Recurring Revenue (MRR)
Monthly Recurring Revenue (MRR) refers to the predictable and recurring revenue generated by a company on a monthly basis, typically through subscriptions or other recurring payment models. MRR is an important metric for subscription-based businesses, as it helps track growth, measure the effectiveness of marketing and sales efforts, and forecast future revenue.
Net Revenue Retention (NRR)
Net revenue retention (NRR) is a financial metric that measures the percentage of recurring revenue retained from existing customers over a specific period, taking into account any upsells, cross-sells, downgrades, or churn. A high net revenue retention rate indicates strong customer satisfaction and growth potential.
Gross Revenue Retention (GRR)
Gross revenue retention (GRR) is a financial metric that measures the percentage of recurring revenue retained from existing customers over a specific period, without considering any upsells or cross-sells. It focuses on the revenue stability and churn rate of a business.
Revenue Expansion
Revenue expansion refers to the increase in revenue generated by existing customers through upsells, cross-sells, or upgrades, contributing to a company's overall growth.
Customer Lifetime Value (CLTV)
Customer Lifetime Value (CLTV) is a financial metric that estimates the total net profit a business can expect to generate from a customer throughout the entire duration of their relationship, taking into account factors such as average purchase value, purchase frequency, and customer lifespan.
Customer Acquisition Cost (CAC)
Customer Acquisition Cost (CAC) is a financial metric that measures the average cost of acquiring a new customer, calculated by dividing the total marketing and sales expenses by the number of new customers acquired over a specific period.
Sean Ellis Test
The Sean Ellis test is a customer survey method used to gauge product-market fit by asking users how disappointed they would be if they could no longer use a product or service. A high percentage of respondents indicating they would be "very disappointed" is considered a sign of strong product-market fit.
Viral Coefficient
The viral coefficient is a metric that measures the organic growth of a product or service by quantifying the number of new users acquired through existing user referrals. A viral coefficient greater than 1 indicates exponential growth, while a coefficient less than 1 signifies slower growth.
Average Revenue Per User (ARPU)
Average Revenue Per User (ARPU) is a financial metric used to measure the average revenue generated per customer over a specific period, calculated by dividing the total revenue by the number of customers.
Churn Rate
Churn rate, or customer attrition rate, is a metric that measures the percentage of customers who cancel or do not renew their subscription or service during a specific period. A high churn rate can indicate customer dissatisfaction or a lack of product-market fit.
Click-Through Rate (CTR)
Click-Through Rate (CTR) is a digital marketing metric that measures the percentage of users who click on a specific link or advertisement relative to the total number of impressions or views. A high CTR indicates that an ad or link is effectively engaging users and driving traffic.
Cost per Lead (CPL)
Cost per lead (CPL) is a financial metric that measures the average cost of acquiring a new lead, calculated by dividing the total marketing and sales expenses by the number of new leads generated over a specific period.
Gross Margin
Gross margin is a financial metric that measures the percentage difference between a company's revenue and the cost of goods sold (COGS). It represents the proportion of each dollar of revenue retained as profit before accounting for operating expenses, taxes, and interest.
Net Margin
Net margin is a financial metric that measures the percentage difference between a company's revenue and its net income, representing the proportion of each dollar of revenue retained as profit after accounting for all expenses, taxes, and interest.
Conversion Rate
Conversion rate is a digital marketing metric that measures the percentage of users who complete a desired action (e.g., making a purchase, signing up for a newsletter, or downloading a resource) relative to the total number of users who visit a website or view an advertisement.
Return on Ad Spend (ROAS)
Return on Ad Spend (ROAS) is a metric used in digital advertising to measure the effectiveness of a particular campaign. It is calculated by dividing the revenue generated by an ad campaign by the cost of the campaign, resulting in a ratio of revenue to advertising spend. For example, if a campaign generated $10,000 in revenue and cost $2,000 to run, the ROAS would be 5 ($10,000 / $2,000 = 5). This means that for every dollar spent on the campaign, it generated $5 in revenue. ROAS is an important metric for advertisers to determine the effectiveness of their ad spend and to make informed decisions about future advertising budgets.
Net Promoter Score (NPS)
Net Promoter Score (NPS) is a customer satisfaction metric used to measure how likely customers are to recommend a company, product, or service to others. Customers are typically asked to rate the likelihood of recommending on a scale of 0 to 10. Responses are then categorized into three groups: promoters (9-10), passives (7-8), and detractors (0-6). The NPS score is calculated by subtracting the percentage of detractors from the percentage of promoters. The resulting score can range from -100 to +100, with higher scores indicating a stronger likelihood of customer loyalty and advocacy.
Customer Relationship Management (CRM)
Customer Relationship Management (CRM) refers to the strategies, practices, and technologies used by businesses to manage and analyze customer interactions and data throughout the customer lifecycle, with the goal of improving customer satisfaction, retention, and driving sales growth.
Question Bank
A question bank is a collection of potential questions, often used in sales and marketing, that can be drawn upon to create customized surveys, interviews, or other forms of customer engagement, helping to gather valuable insights and feedback.
Sales Playbook
A sales playbook is a documented collection of sales processes, techniques, and best practices used by a sales team to guide their interactions with prospects and customers, helping to standardize and optimize the sales process.
Sales Battlecard
A sales battlecard is a concise, visual summary of a company's unique selling points, competitive advantages, and key differentiators, designed to help sales representatives quickly and effectively address common objections and concerns raised by prospects during the sales process.
Sales Script
A sales script is a pre-written guide used by sales representatives during calls, meetings, or presentations, outlining key talking points, questions, and responses to help navigate conversations with prospects and customers.
Customer Success
Customer success refers to the strategies and practices used by businesses to ensure that customers achieve their desired outcomes and remain satisfied with a product or service, driving long-term customer retention and loyalty.
Product-Led Growth (PLG)
Product-led growth (PLG) is a business strategy that emphasizes the role of the product in driving customer acquisition, retention, and expansion, often leveraging features such as free trials, freemium plans, or self-service onboarding to facilitate user adoption and generate revenue.
Sales Funnel
A sales funnel is a visual representation of the stages a prospect goes through from initial awareness to becoming a paying customer, helping businesses to track and optimize their sales and marketing efforts.
Pipeline
In sales, a pipeline refers to a series of prospects or leads at various stages of the sales process, from initial contact to closing the deal, providing a snapshot of potential revenue and future business opportunities.
Top of Funnel (TOFU)
Top of funnel (TOFU) refers to the initial stage of the customer journey where potential customers become aware of a product or service. This is where marketers and sales teams focus on lead generation, building brand awareness, and attracting potential customers through different channels, such as social media, content marketing, or search engine optimization. The goal of TOFU is to attract as many potential customers as possible and to generate interest in the product or service.
Bottom of Funnel (BOFU)
Bottom of funnel (BOFU) refers to the final stage of the customer journey where potential customers are close to making a purchase decision. At this stage, the focus of sales and marketing is to convert the leads into customers. Marketers and sales teams use tactics such as product demos, free trials, pricing discussions, and other tactics to convince the potential customer to make a purchase. The goal of BOFU is to convert as many leads as possible into paying customers.
Product Demo
A product demo is a live or recorded presentation showcasing the features, benefits, and functionality of a product or service, often used as a sales and marketing tool to engage prospects, address objections, and drive customer conversions.
Direct-to-Consumer (DTC)
Direct-to-Consumer (DTC) refers to a business model where companies sell their products or services directly to customers, bypassing traditional intermediaries such as retailers or wholesalers, allowing for greater control over branding, customer experience, and pricing.
Sales Development Representative (SDR)
Sales Development Representative (SDR) is an entry-level sales role responsible for generating and qualifying leads, setting appointments, and nurturing prospects through the initial stages of the sales process, often working closely with account executives or other sales team members.
Account Executive (AE)
An account executive is a sales professional responsible for managing relationships with prospects and customers, identifying their needs, presenting tailored solutions, and closing deals to drive revenue growth.
Cold Calling
Cold calling is a sales technique where representatives reach out to potential customers who have not previously expressed interest in a product or service, often by phone or email, with the goal of generating new leads and opportunities.
Enterprise Deals
Enterprise deals refer to high-value sales agreements with large organizations, corporations, or government agencies, typically involving complex negotiations, customized solutions, and multi-year contracts.
Mid-Market Deals
Mid-market deals refer to sales agreements with medium-sized businesses, typically characterized by shorter sales cycles and smaller deal sizes compared to enterprise deals, but still requiring tailored solutions and strategic account management.
Landing Page
A landing page is a standalone web page designed to serve a specific marketing or advertising campaign, often with a single call-to-action (CTA) and a focused message, aiming to capture leads, drive conversions, or promote a particular product or service.
Instant Forms
These are lead generation forms that can be embedded in social media ads on platforms like Facebook, LinkedIn, and YouTube. They allow users to quickly fill in their contact information without leaving the social media platform. Instant forms provide businesses with valuable leads and feedback on which targeting works best for their ads. They have become increasingly popular as alternative to traditional landing page ads, especially after privacy and cookie-related policy changes like iOS 14.
Growth Hacking
Growth hacking is a data-driven approach to marketing, product development, and customer acquisition that focuses on rapid experimentation, innovative tactics, and unconventional strategies to achieve rapid and sustainable growth for startups and businesses.
Social Reputation
Social reputation, or online reputation, refers to the public perception of a brand, company, or individual based on their presence, activities, and interactions on social media platforms and other online channels, impacting trust, credibility, and customer loyalty.
Product Hunt
Product Hunt is an online platform and community where users can discover, share, and discuss new products, apps, and technologies, often serving as a launchpad for startups and a source of exposure and feedback for product creators.
App Store Optimization (ASO)
App store optimization (ASO) is the process of improving an app's visibility and ranking in app stores such as Apple's App Store or Google Play by optimizing its title, description, keywords, and other factors, with the goal of increasing downloads and user acquisition.
Offline Ads
Offline ads, or traditional advertising, refers to promotional activities conducted through offline channels such as print, radio, television, billboards, and direct mail, aiming to reach and engage target audiences and drive brand awareness, leads, or sales.
Backlinks
Backlinks, or inbound links, are hyperlinks from external websites that point to a specific web page, serving as a vote of confidence or endorsement for that page's content. High-quality backlinks are an important factor in search engine optimization (SEO), as they can positively impact a website's organic ranking and visibility.
Domain Authority
Domain authority (DA) is a search engine ranking score, developed by Moz, that predicts a website's ability to rank on search engine results pages (SERPs). It is calculated based on various factors, including the number and quality of backlinks, and ranges from 1 to 100, with higher scores indicating a greater likelihood of ranking.
Channel Partnership Strategy
A go-to-market strategy that involves partnering with other businesses, usually in complementary or related industries, to reach new customers and markets. This approach is particularly effective for businesses with established product-market fit that want to scale in a cost-efficient manner. Channel partners can provide a low-cost, high-impact way to reach new customers, as well as valuable feedback and insights into customer needs and behaviors. Additionally, channel partnerships can provide a way to build long-term relationships with other businesses, which can lead to mutual growth and success.
Word of Mouth (WoM)
Word of mouth refers to the organic sharing of information, opinions, or recommendations about a product, service, or brand by customers, users, or influencers, often serving as a powerful and cost-effective marketing tool that can drive awareness, trust, and adoption.
News-Jacking
News-jacking is a marketing tactic that involves piggybacking on a breaking news story or viral trend to gain attention for your brand or message. It was popularized by David Meerman Scott in his book "Newsjacking: How to Inject Your Ideas into a Breaking News Story and Generate Tons of Media Coverage." The idea is to leverage the momentum of a current news story or trend to generate buzz for your own content or message, with the goal of reaching a wider audience and driving traffic to your website or social media channels. This tactic can be especially effective for social media marketing and content marketing, as it allows brands to stay relevant and top-of-mind in the fast-paced world of online news and trends.
Loyalty Program
A loyalty program is a marketing strategy designed to incentivize and reward repeat customers for their continued patronage, often through points, discounts, or exclusive benefits, with the goal of increasing customer retention, lifetime value, and advocacy.
Sub-Reddit
A sub-reddit is a specific community or forum within the social media platform Reddit, dedicated to discussing and sharing content related to a particular topic, interest, or theme. Users can join, participate, and submit content to sub-reddits, making them valuable for businesses looking to engage with niche audiences and gather insights on customer preferences or trends.
Customer Advisory Board
A group of selected customers who provide feedback and strategic guidance to a company on its products or services. While primarily used to improve customer satisfaction and product development, a customer advisory board can also be an effective strategy for fostering new client relationships, even with non-customers, and transitioning them over to customers over time. The board typically meets regularly with representatives from the company to discuss upcoming releases, industry trends, and other topics relevant to the business.
Hacker News
Hacker News is a social news website and community focused on technology, startups, and entrepreneurship, where users can submit, discuss, and upvote content, making it a valuable platform for businesses looking to engage with a tech-savvy audience, showcase their products, or gather feedback.
Retargeting
Retargeting, also known as remarketing, is a digital advertising strategy that involves displaying ads to users who have previously visited a website or engaged with a brand, with the goal of encouraging them to return, complete a desired action, or make a purchase.
Inbound Marketing
Inbound marketing is a marketing strategy that focuses on attracting customers through the creation and distribution of valuable, relevant, and engaging content, as opposed to traditional outbound marketing methods, such as cold calling or direct mail.
Outbound Marketing
Outbound marketing refers to traditional marketing methods that involve reaching out to potential customers through channels such as television, radio, print, direct mail, or cold calling, often with broad messaging and a focus on generating brand awareness.
Content Marketing
Content marketing is a strategic marketing approach focused on creating, publishing, and distributing valuable, relevant, and consistent content to attract and engage a target audience, with the goal of driving customer actions, building brand authority, and driving long-term growth.
Email Marketing
Email marketing is a digital marketing strategy that involves sending targeted emails to prospects and customers, aiming to promote products or services, nurture leads, build relationships, or drive conversions.
Influencer Marketing
Influencer marketing is a marketing strategy that leverages the reach and credibility of influential individuals, such as bloggers, celebrities, or industry experts, to promote a brand, product, or service to their followers or network, often through sponsored content or endorsements.
Venture Capital (VC)
Venture capital is a form of private equity financing provided by investors to startups and early-stage companies with high growth potential, typically in exchange for equity or ownership stakes.
Simple Agreement for Future Equity (SAFE)
A Simple Agreement for Future Equity (SAFE) is a financial instrument commonly used in early-stage startup investing, especially by Y Combinator. It allows startups to raise funds by selling future equity to investors without setting a valuation for the company. The investor provides funding to the startup in exchange for a promise of future equity, typically upon the occurrence of a future financing round or liquidity event. SAFEs do not accrue interest and do not have a maturity date, making them faster to execute than traditional convertible notes.
Convertible Debt
Convertible debt, also known as a convertible note, is a type of short-term debt financing that can be converted into equity, typically at a discount to the valuation of a future financing round, offering startups a flexible and less dilutive fundraising option compared to traditional equity financing.
Revenue Multiple
The revenue multiple is a valuation metric used to compare the market value of a company to its annual revenue, often used by investors to assess the relative value of companies within the same industry or sector.
Fear of Missing Out (FOMO)
Fear of Missing Out (FOMO) is a psychological phenomenon that can drive investor behavior, causing them to invest in a company or participate in a funding round out of concern that they may miss out on a potentially lucrative opportunity if they don't act quickly.
Cost to Duplicate
The cost to duplicate is a valuation approach that estimates the value of a company based on the cost of recreating its assets, intellectual property, and infrastructure from scratch, often used as a lower-bound valuation method for early-stage startups or technology companies.
Discounted Cash Flow (DCF)
Discounted Cash Flow (DCF) is a valuation method used to estimate the value of an investment or company based on the present value of its future cash flows, taking into account the time value of money and the inherent risk associated with those cash flows.
Comparables Approach
The comparables approach, or multiples approach, is a valuation method that estimates the value of a company by comparing it to similar companies in the same industry or sector, using metrics such as revenue multiples, earnings multiples, or other financial ratios.
Precedent Transactions
Precedent transactions are historical mergers, acquisitions, or investments involving companies with similar characteristics, used as a reference point for valuing a target company in the context of a potential transaction.
Liquidation Preferences
Liquidation preferences are terms in a venture capital investment that determine the order and priority in which investors receive proceeds from the sale, liquidation, or dissolution of a company, often used to protect the interests of preferred shareholders.
Anti-dilution provisions
Anti-dilution provisions are clauses in a term sheet that protect investors from dilution in the event of future financing rounds. There are two types of anti-dilution provisions, weighted-average and full-ratchet, and they help ensure that investors are not unfairly diluted if the company issues new shares at a lower price than the investor originally paid.
Information rights
Information rights are a set of rights that investors have in a company, which allows them to access and review key financial and operational data. Typically, information rights are included in the company's term sheet and provide investors with the right to receive regular reports on the company's performance, as well as access to financial statements and other relevant data.
Rights of first refusal
Rights of first refusal are a term sheet provision that gives investors the right to purchase additional shares in the company before they are offered to other investors. This means that if the company decides to issue new shares, the existing investors have the first right to purchase them at the same price and on the same terms as the new investors.
Redemption rights
Redemption rights are a term sheet provision that gives investors the option to force the company to buy back their shares after a certain period of time. This is typically done at the original purchase price plus any agreed-upon interest or dividends, and it helps investors protect themselves in case the company does not perform as expected.
Warrant coverage
Warrant coverage is a term sheet provision that provides investors with the right to purchase additional shares in the company at a fixed price. This is typically included as a sweetener to encourage investors to participate in a financing round and can help increase the potential return on investment for the investor.
Traction
Traction refers to the progress and momentum a company, product, or service has achieved in terms of user adoption, customer engagement, revenue growth, or other key performance indicators, often used by investors to assess the viability and potential of a startup.
Use of Proceeds
Use of proceeds is a term used to describe how a company plans to allocate and spend the funds raised through an investment, crowdfunding campaign, or other fundraising efforts, typically outlined in a pitch deck or offering documents.
Funding Ask
A funding ask is the amount of money a startup or company is seeking to raise from investors, typically specified in a pitch deck, term sheet, or investment proposal, and often used to help investors evaluate the potential return on investment and dilution associated with a deal.
Bottom-Up Market Sizing
Bottom-up market sizing is a method of estimating the potential market size and revenue opportunity for a product or service by analyzing the demand and consumption patterns of individual customers or segments and aggregating them to determine the total addressable market.
Top-down Market Sizing
Top-down market sizing is a method of estimating the potential market size and revenue opportunity for a product or service by analyzing the overall market or industry and then applying assumptions or metrics to estimate the share that the company could capture.
Action Titles
Action titles in pitch decks are slide headings that convey the key message or insight of the slide content in a succinct and engaging manner, as opposed to descriptive titles, which are more generic and simply label the topic covered, such as "competition" or "market size". Action titles help make pitch decks more persuasive and memorable by emphasizing the core takeaways and focusing the audience's attention on the most important aspects of the presentation.
Runway
Runway refers to the amount of time a startup or company can continue operating with its current cash reserves before needing to raise additional funds or become profitable, often used as a key metric for assessing financial stability and burn rate.
Priced Round
A priced round is an equity financing round where the valuation of a company and the price per share are explicitly determined and negotiated between investors and the company, resulting in the issuance of new shares and the dilution of existing shareholders.
Product-Market fit
Product-market fit is the alignment between a product or service and its target market, characterized by strong demand, rapid user adoption, and positive customer feedback, often considered a critical milestone for startups and a key indicator of future success.
Validation
Validation refers to the process of gathering evidence and feedback to support the viability and desirability of a product, service, or business idea, often through market research, user testing, or customer interviews, with the goal of reducing risk and improving decision-making.
Investment Committee
An investment committee is a group of individuals, typically within a venture capital firm, private equity firm, or other investment organization, responsible for evaluating potential investment opportunities, making decisions on whether to invest, and monitoring the performance of portfolio companies.
Investment Memo
An investment memo is a document created by an investor or investment firm to outline the rationale, analysis, and key considerations behind a potential investment in a company or asset, often used as a decision-making tool and record of the investment process.
Crowdfunding
Crowdfunding is a method of raising capital from a large number of individuals or investors, often through online platforms, by pooling small contributions to fund a project, startup, or cause, offering various types of rewards, equity, or debt in return for their support.
Family Office
A family office is a private wealth management advisory firm that serves high-net-worth individuals or families, providing a range of services including investment management, estate planning, tax planning, and philanthropy, often with a focus on preserving and growing wealth across generations.
Revenue-Based Financing (RBF)
Revenue-based financing is a type of funding for startups and growth-stage companies, where investors provide capital in exchange for a percentage of the company's ongoing revenue, often structured as a flexible repayment plan tied to the company's financial performance.
General Partner
A general partner (GP) is an individual or entity responsible for managing the day-to-day operations of a partnership, such as a venture capital fund or private equity firm, and typically assumes unlimited liability for the partnership's debts and obligations.
Limited Partner
A limited partner (LP) is an individual or entity that invests capital in a partnership, such as a venture capital fund or private equity firm, in exchange for a share of the profits, but typically has limited involvement in the management and decision-making process, and limited liability for the partnership's debts and obligations.
Fund Vintage
Fund vintage refers to the year in which a venture capital or private equity fund was established or began making investments, often used as a reference point for comparing the performance and characteristics of different funds within the same vintage or across vintages. Fund vintage is an important factor for startups seeking funding because older funds may need to have exits sooner to meet their return goals, which could impact their investment strategy and decision-making process.
Warm Intro
A warm introduction is a personal referral or connection made between two parties by a mutual contact, often used in the context of networking or seeking investment, and typically considered more effective and valuable than a cold outreach or unsolicited contact.
Preferred Equity
Preferred equity is a class of ownership in a company that has priority over common equity in terms of dividend payments and claims on assets in the event of liquidation, often providing investors with additional rights, protections, and preferences compared to common shareholders.
Common Equity
Common equity is a class of ownership in a company that represents a residual interest in its assets and earnings, typically providing shareholders with voting rights and the right to receive dividends, but ranking behind preferred equity and debt in terms of priority and claims on assets.
Angel Club
An angel club, also known as an angel group or angel network, is a group of individual angel investors who pool their resources, expertise, and networks to evaluate, invest in, and support early-stage startups and entrepreneurs, often providing mentorship and guidance.
Pro Rata Rights
Pro rata rights, also known as participation rights or preemptive rights, are contractual provisions that give investors the right, but not the obligation, to maintain their ownership percentage in a company by participating in future financing rounds, often used to protect against dilution and secure access to additional investment opportunities.
Pitch Deck
A pitch deck is a brief presentation, typically consisting of 10-20 slides, used by startups and entrepreneurs to provide an overview of their business, product, or idea to potential investors, partners, or customers, often covering key aspects such as the problem, solution, market, business model, financials, team, and ask.
One-Pager
A one-pager, also known as a one-sheet or executive summary, is a concise, single-page document that provides an overview of a company, product, or investment opportunity, highlighting key information and value propositions, often used as a marketing tool, leave-behind, or initial introduction to potential investors, partners, or customers.