Glossary
Every startup term you should know
Contractual safeguard that shields an investor from experiencing a substantial decrease in their investment’s ownership percentage during subsequent rounds of fundraising aka when other investors buy stock in a company.
Read moreA/B testing
Testing two content versions to see which performs better.
Read moreAbandonment rate
The percentage of users who leave a page without further interaction or abandon a cart mid-checkout.
Read moreAbnormal return
Difference between the actual return of an investment and the expected return, often based on a benchmark or a model like the Capital Asset Pricing Model (CAPM). Essentially, it measures how much better or worse an asset performed compared to what was anticipated given the risk involved.
Read moreAbove ground risk
Refers to external risks like political, regulatory, social, or economic factors that impact a business. These risks come from outside forces rather than the production process itself.
Read moreAbove market cost
Measures how much higher a product's price is compared to other available alternatives.
Read moreAccelerated vesting
Form of vesting that occurs more quickly than outlined in a company’s stock option plan. This provision allows employees or investors to gain ownership of their equity or stock options earlier, providing them with monetary benefits sooner.
Read moreAccelerator
Structured programs designed to support entrepreneurs with mentorship, essential guidance, and training. Typically lasting a set duration, these programs often conclude with a pitch event, allowing startups to present their ideas to potential investors and expedite their growth.
Read moreAccounts payable (AP)
A short-term liability representing a company's unpaid bills for goods or services. It's money owed to suppliers and is recorded as a liability on the balance sheet.
Read moreAccounts receivable (AR)
Money owed to a company by its customers for goods or services provided. It's a short-term asset on the balance sheet, representing future payments.
Read moreAccredited investor
An individual who meets the legal financial requirements to invest in certain business ventures, typically higher-risk opportunities like private equity or hedge funds.
Read moreAccretion
Refers to the gradual increase in the value of an asset or investment over time due to growth, interest, or the natural accumulation of value.
Read moreAdvisor agreement
A legal contract between a company and an advisor that outlines the terms and conditions of the advisor’s services.
Read moreAdvisory board
A group of external experts who provide strategic guidance, insights, and support to a company’s management team.
Read moreAdWords
Google’s pay-per-click ad platform for displaying ads on search results and affiliated sites.
Read moreAgile development
An iterative approach to product development that emphasizes flexibility, collaboration, and fast adaptation to change.
Read moreBacklink
An inbound link from an external site that improves SEO by signalling relevance to search engines.
Read moreBacklog
A prioritized list of tasks and features to be developed, guiding the team’s efforts.
Read moreBeta testing
Testing a product with real users to gather feedback and identify bugs before a full release.
Read moreBounce rate
The percentage of visitors who exit a website after viewing only one page.
Read moreBuyer persona
A research-based profile of a business’s ideal customer, detailing characteristics and preferences to help tailor marketing.
Read moreCall to action (CTA)
A prompt encouraging the user to take a specific action, like “Sign up now” or “Learn more.”
Read moreClick-through rate (CTR)
The percentage of people who click a link in an ad or email out of those who viewed it.
Read moreContent management system (CSM)
Software used to create, edit, and publish digital content.
Read moreCost per acquisition (CPA)
The amount paid for a specific action by a user, like a click, sign-up, or purchase.
Read moreCost per lead (CPL)
The cost to acquire a new lead, calculated by dividing total campaign costs by the number of leads generated.
Read moreCustomer journey map
A visual representation of the steps a customer takes when interacting with a product.
Read moreCustomer relationship management (CRM)
Software and practices to manage customer interactions, fostering long-term relationships.
Read moreCustomer retention
The strategies used to keep customers engaged and reduce churn.
Read moreDirect traffic
Visitors who arrive at a website directly, often via a typed URL or bookmark, rather than through a search engine or referral.
Read moreHeat map
A visual representation showing where users interact most on a webpage.
Read moreInbound marketing
Attracting customers through valuable content and organic channels like social media, blogs, or SEO-optimized articles.
Read moreLead generation
The process of attracting and capturing interest in a product, aiming to turn prospects into customers.
Read moreLead magnet
Free resources like eBooks, trials, or guides offered to capture leads’ contact information.
Read moreLean development
A methodology focused on delivering value with minimal resources, using early validation to reduce waste.
Read moreMarketing automation
Software that automates repetitive marketing tasks like email sequences, social media posts, and targeted messages.
Read moreMarketing funnel
A model outlining the stages of customer engagement from awareness to purchase.
Read moreMarketing key performance indicator (KPI)
Metrics that help evaluate the success of marketing strategies.
Read moreMarket validation
Testing demand for your product concept before full-scale development.
Read moreMinimum viable product (MVP)
The simplest version of a product, with core features to test user interest.
Read moreNurturing
Guiding leads through the sales funnel with tailored content and interaction at each stage.
Read moreProduct-led growth (PLG)
A growth strategy where the product itself drives user acquisition and retention.
Read moreProduct-market fit
The point where your product solves a real market need, and users are eager to adopt it.
Read moreProduct lifecycle
The stages a product goes through, from development to decline.
Read moreProduct portfolio
A collection of all the products and services offered by a company.
Read moreProduct roadmap
A strategic plan outlining key milestones, features, and timelines for development.
Read moreProduct vision
The long-term goal guiding product development, aligning with user needs and company objectives.
Read morePrototype
A working model of a product used to test and validate ideas before full development.
Read moreReferral marketing
A program encouraging existing customers to refer new customers, often through incentives like discounts.
Read moreRetention rate
The percentage of customers who continue using a product or service over a set time, indicating customer loyalty.
Read moreRetrospective
A meeting where teams reflect on the previous sprint to identify improvements.
Read moreScrum
A framework within Agile that divides work into time-boxed sprints and uses specific roles like Scrum Master and Product Owner.
Read moreSearch engine marketing (SEM)
Paid ads that appear on search engine result pages, often targeting keywords to reach potential customers.
Read moreSearch engine optimization (SEO)
Techniques to improve website ranking in search results.
Read moreSegmentation
Dividing customers into groups based on common features for targeted marketing.
Read moreShipping
The process of delivering a product or feature to customers, making it publicly available.
Read moreSprint
A focused, time-limited work period to complete specific tasks or features.
Read moreThought leadership
Content that positions a brand or individual as an authority in its field, often through blog posts, articles, and expert insights.
Read moreUI (User interface)
The visual and interactive components that users engage with in a product.
Read moreUnique selling proposition (USP)
A distinct feature or advantage that sets a brand or product apart from competitors.
Read moreUsability testing
A method for testing a product with real users to identify pain points and refine the experience.
Read moreUser flows
A visual guide detailing the steps users take to achieve a goal within the product.
Read moreUser persona
A semi-fictional representation of your ideal user, helping guide design and feature decisions.
Read moreUser research
The process of gathering insights about users to inform product decisions.
Read moreUX (User experience)
The overall experience a user has with a product, focusing on usability, design, and satisfaction.
Read moreValue proposition
The unique value your product promises to deliver, setting it apart from competitors.
Read moreWireframe
A basic visual guide that represents the skeletal framework of a product’s interface.
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