Make sense of the language of startups and venture capital.
30 results
Feb 8, 2025
The most relevant financial terms for startups: GTV, TTV, GMV, Take Rate, Revenue, CAGR, CMGR, COGS, Gross Margin, Burn Rate & Runway.
Investment instruments are different legal means used to receive financing. Typically, an investor can invest in exchange for shares or invest using a convertible instrument.
Monthly Recurring Revenue, or MRR, means monthly recurring revenue. It is a metric used by startups to track how much money they generate each month from their subscription-based products or services.
Most Favoured Nation, also abbreviated as MFV, is a clause often requested by venture capital investors to ensure that if future investors are granted rights with greater benefits, current investors receive them too.
An MVP (Minimum Viable Product) is a basic solution created to validate a business model and find out whether people are willing to pay for a product or service that meets their needs.
Post-money valuation refers to the value of a startup after it has raised an investment round.
Preferred stock, or preferred shares, are shares typically granted to certain shareholders in a company to give them greater financial benefits than other shareholders.
Pre-money valuation refers to a startup’s value before an investment comes in.
Product Market Fit, also abbreviated as PMF, is the moment when your product is in demand in the market, rather than simply being offered by you. In other words, it is the moment when the company no longer needs to go out and sell the product; instead, customers come to you and ask for it.
Pro rata is a right that investors often request to avoid being diluted in a startup’s future investment rounds. These rights give investors the opportunity to participate in the startup’s next investment round.
A Special Purpose Vehicle (SPV) is an investment vehicle (company) created to receive funds from one or more investors when an investment cannot be made directly by the fund or the investors.
Feb 28, 2026
A startup is an innovative company designed to grow exponentially and scale across multiple markets. In its early stages, it will face considerable uncertainty about the ideal product and business model to support that growth and scalability.
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