Make sense of the language of startups and venture capital.
30 results
Feb 8, 2025
A business accelerator helps other companies grow in their early stages. An incubator, on the other hand, supports projects at the idea stage and helps them turn that idea into a product.
Annual Recurring Revenue, or ARR, means annual recurring revenue. It is the total amount of predictable, recurring revenue a startup generates from its customers each year.
Bootstrapping refers to a company growth strategy based on using its own resources rather than relying on external investment to fund its development
Business models are how a startup monetizes its product or service. The following models are typically found: B2B, B2C, B2B2C, B2G, and P2P.
Unit economics are a way to simplify a company’s financial operations and are used to understand its profitability. The most common metrics are CAC, LTV, conversion rate, and churn.
A document that records a company’s shareholders and each person’s corresponding ownership percentage, as well as the type of share class.
Common stock, or ordinary shares, are shares typically issued to shareholders in a company that do not provide any special benefits over those of other shareholders.
Corporate Venture Capital, also known as CVC, is an investment fund whose sole LP (Limited Partner) is a corporation.
A “down round” is an investment round in which a company raises capital at a lower valuation than in its previous round. When a company raises capital at the same valuation as in its previous round, it is called a “flat round.”
Drag along is a right held by majority shareholders to require minority shareholders to join a share sale.
Due diligence is a process within the investment analysis conducted by investment funds and investors in general, aimed at identifying risks and designing or establishing strategies to mitigate them after an investment.
A family office is a firm that manages the resources of a wealthy family
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