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  • Startup Jargons

25 Startup Jargons That Every Entrepreneur Must Know

Startups are trending and so is their terminology. With a whole new dictionary of its own, the startup world is taking over with new jargons and buzzwords. This blog is an attempt to familiarize you with these terms and words used by founders investors, accelerators, and others to understand better.

 

  1. A-Round Financing: The first major step of startup funding. Founders have to demonstrate to external investors that their business is viable and profitable.
  2. Accelerator: Accelerators support early-stage, growth-driven companies through education, mentorship, and financing and make an investment in return for equity.
  3. Add-on Service: Non-monetary services provided by venture capitalists in order to help prepare a company for growth. For example, assembling resources etc.
  4. Adventure Capitalist: An entrepreneur who occupies a position in the governing body of the organization. He/She helps other entrepreneurs financially.
  5. Advisor: An entity that helps a company in the formative years by advising, supporting and providing useful professional contacts
  6. Agile: A software development method which emphasizes on adaptability and promotes incremental development.
  7. Angel Investor: Informal or private investors who support a startup financially in exchange for ownership equity.
  8. Benchmark: A criterion by which a startup company calculates their current success. Growth measurement parameter for a start-up’s success.
  9. Bridge loan: A short-term gap financing arrangement also known as a swing loan.
  10. Bootstrapping: Bootstrapping is the process of initializing a business without the assistance of any external help or capital. In this, the companies are funded via internal cash flow.
  11. Equity financing: A process in which capital is raised by selling shares of the organization.
  12. Flipping: The act of buying shares in an IPO and selling them immediately for a profit.
  13. Incubator: Organization/Individual that aids in the development of early-stage ventures. This help is extended usually in exchange for equity in the company.
  14. IPO: Initial public offering. The point at which a private organization turns into a public company. The shares of a company are made available to the general public.
  15. Minimum viable product: It is a prototype of a company’s product that is used to analyze and learn about its viability and potential to sell in the market.
  16. NDA: Non-disclosure agreement. An accord between two entities to protect confidential and sensitive information like trade secrets from being disclosed to outside parties.
  17. Proof of concept: A demo of startup idea or concept which validates its feasibility.
  18. ROI: Return on investment. Percentage of money received back from investor by the startup.
  19. SaaS- Software as a service
  20. Seed: First stage of funding of a startup, usually based on concept and prototype.
  21. Secondary public offering: When a company offers up new stock for sale to the public after an IPO.
  22. Unicorn list: A startup company that is valued at over $1 billion is called a unicorn.
  23. Valuation: The process by which a company’s worth or value is determined.
  24. Venture capital: Money provided by venture capital firms to small, high-risk, startup companies with major growth potential.
  25. Zombie Startup: A company which claims to have continuing operations but which demonstrates little or no growth in website visitations or use in recent quarters.
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May 9th, 2017|Uncategorized|