Glossary
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A
Testing two content versions to see which performs better.
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Growth framework used to track key stages of the customer lifecycle, helping businesses focus on the right metrics. The acronym stands for Acquisition, Activation, Retention, Referral and Revenue and is often called the "Pirate Metrics" because of what it sounds like.
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The percentage of users who leave a page without further interaction or abandon a cart mid-checkout.
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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.
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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.
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Measures how much higher a product's price is compared to other available alternatives.
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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.
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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.
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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.
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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.
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An individual who meets the legal financial requirements to invest in certain business ventures, typically higher-risk opportunities like private equity or hedge funds.
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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.
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A transaction in which one company purchases a controlling interest (50% or more) or most or all of another company’s shares to gain control.
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A measurement that provides clear insights and guidance, helping businesses make informed decisions to improve performance.
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A customer who regularly purchases from a business within a specific time frame (usually 12 months), indicating engagement and ongoing interest in the company's products or services.
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Individuals who regularly engage with a product, service, or platform within a specific time period, such as daily, weekly, or monthly.
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Total possible market for a product, representing all potential customers and revenue opportunities if the product achieves full market reach.
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A legal contract between a company and an advisor that outlines the terms and conditions of the advisor’s services.
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A group of external experts who provide strategic guidance, insights, and support to a company’s management team.
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Google’s pay-per-click ad platform for displaying ads on search results and affiliated sites.
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A project management and development approach focused on flexibility, collaboration, and iterative progress.
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A broad term used to describe all tools and methodologies employed to track user behavior, gather data, and derive insights to improve products and services.
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A group of angel investors that invest collectively in early-stage startups and ventures.
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An individual who provides financial support to early-stage startups or entrepreneurs, typically in exchange for equity ownership or convertible debt.
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A type of financing round in which a startup raises capital from angel investors, typically during its early stages.
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The percentage increase or decrease in an investment's value over a year, including capital gains and income earned (like dividends or interest).
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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.
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Refers to the simulation of human intelligence in machines that are programmed to think and learn like humans.
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A resource owned by an individual or entity that has economic value and can provide future benefits.
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A key performance metric used to measure the revenue generated per user or subscriber over a specific period.
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B
An inbound link from an external site that improves SEO by signalling relevance to search engines.
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The percentage of visitors who exit a website after viewing only one page.
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Rate at which the company is spending its capital/cash to cover operating expenses before reaching profitability; calculated on a monthly basis.
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A research-based profile of a business’s ideal customer, detailing characteristics and preferences to help tailor marketing.
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C
A prompt encouraging the user to take a specific action, like “Sign up now” or “Learn more.”
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A document that provides a detailed breakdown of company’s ownership structure, outlining the equity ownership stakes of shareholders, including investors, founders, and employees.
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Also known as retention rate, the churn rate is a metric that measures the percentage of customers or subscribers who discontinue using a service or product over a given period versus the ones that start.
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The percentage of people who click a link in an ad or email out of those who viewed it.
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Employee stock options typically undergo vesting over a span of several years, meaning they can only be fully converted into stock after this duration.
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The fundamental ownership unit in a company, usually held by founders and employees. Early angel investors may also hold common stock. However, institutional external investors, especially VCs, typically demand preferred stock with added rights, notable priority in a liquidation event.
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Software used to create, edit, and publish digital content.
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An irreversible process of converting preferred share to common shares.
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Type of loan that can turn into ownership in a company when there’s another funding round, offering a straightforward way for startups to get early-stage funding. Investors who use convertible notes usually get a share in the company when it raises more money, based on a set formula or discount. *Discounted convertible note
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The amount paid for a specific action by a user, like a click, sign-up, or purchase.
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The cost to acquire a new lead, calculated by dividing total campaign costs by the number of leads generated.
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Total expense a business spends to acquire a new customer.
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Predicted total revenue business anticipates earning from a customer throughout their entire relationship, reflecting the long-term value and profitability of that customer.
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Software and practices to manage customer interactions, fostering long-term relationships.
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D
Reduction of existing shareholders’ ownership percentage in a company when additional shares are issued, typically through fundraising rounds.
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Visitors who arrive at a website directly, often via a typed URL or bookmark, rather than through a search engine or referral.
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Funding round in which a company raises capital at a valuation lower than its previous financing, often resulting in a dilution of existing shareholders.
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Provisions in shareholders’ agreement that empower majority shareholders to force minority shareholders to join in the sale of a company, ensuring a unified decision in favour of a potential buyer.
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Comprehensive investigation and evaluation process conducted by potential investors or acquirers to assess the financial, legal, and operational aspects of a business before making an investment or acquisition decision.
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E
Financial metric that measures a company's core profitability by excluding non-operating expenses (interest and taxes) and non-cash items (depreciation and amortization).
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Benefit plan that allows employees to become partial owners of the company by receiving shares of its stock, fostering employee engagement and aligning their interests with company performance.
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A measure of active interaction with content, often on social media, such as likes, comments, and shares.
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Ownership stake that investors receive in a company in exchange for their investment.
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F
Occurs when startup issues shares at the same post-money valuation as its previous fundraising round.
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Total number of outstanding shares company would have if all potentially dilutive securities, such as stock options, restricted stock units, and convertible securities, were converted or exercised.
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G
Low-cost strategies focused on rapid growth, often through viral marketing and social media.
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H
A visual representation showing where users interact most on a webpage.
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I
Attracting customers through valuable content and organic channels like social media, blogs, or SEO-optimized articles.
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L
The process of attracting and capturing interest in a product, aiming to turn prospects into customers.
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Free resources like eBooks, trials, or guides offered to capture leads’ contact information.
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A provision in a contract specifying the order of payment to investors in the event of a company’s liquidation or sale, often prioritizing investors over founders.
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Predetermined length of time, often imposed on company insiders and early investors, during which they are restricted from selling or trading their shares following an IPO to prevent sudden stock volatility.
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M
N
Guiding leads through the sales funnel with tailored content and interaction at each stage.
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O
P
External investors, especially VCs, typically demand preferred stock with enhanced rights compared to common stock, the fundamental ownership unit in a company.
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Clause in a term sheet that grants investors the option to maintain their ownership stake by participating in future funding rounds.
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R
A program encouraging existing customers to refer new customers, often through incentives like discounts.
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The percentage of customers who continue using a product or service over a set time, indicating customer loyalty.
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Yearly forecast of revenue derived from current revenue figures.
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Often granted in VC deals, giving priority to the startup and then the investor in any future stock sale.
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Financial metric that calculates the amount of time a startup can sustain its operations with the current level of available funds before exhausting its financial resources, often expressed in months.
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S
Paid ads that appear on search engine result pages, often targeting keywords to reach potential customers.
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Techniques to improve website ranking in search results.
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When an investor purchases shares from an existing shareholder rather than from the company directly through an issuance of stock.
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Dividing customers into groups based on common features for targeted marketing.
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T
While warrants in equity funding rounds often introduce unnecessary complexity, they play a vital role in bridge loan and venture debt agreements.
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Non-binding document outlining the key terms and conditions of a potential investment or acquisition, serving as a basis for negotiation between parties involved.
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Content that positions a brand or individual as an authority in its field, often through blog posts, articles, and expert insights.
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U
A distinct feature or advantage that sets a brand or product apart from competitors.
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V
W
Similar to stock options, issued to investors. While warrants in equity funding rounds often introduce unnecessary complexity, they play a vital role in bridge loan and venture debt agreements.
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