Buying a company primarily for the skills and expertise of its staff, rather than for the products or services it supplies.
A high-net-worth individual who provides financial backing for small startups or entrepreneurs, typically in exchange for ownership equity.
A key metric for subscription businesses, representing the value of the recurring revenue components of your term subscriptions normalized to a one-year period.
Building a company from the ground up with nothing but personal savings and, with luck, the cash coming in from the first sales.
The rate at which a new company is spending its venture capital to finance overhead before generating positive cash flow from operations.
The cost associated with convincing a consumer to buy a product or service, including research, marketing, and accessibility costs.
A table providing an analysis of a startup's percentages of ownership, equity dilution, and value of equity in each round of investment.
The annual percentage rate at which customers stop subscribing to a service or employees leave a job.
A form of short-term debt that converts into equity, typically in conjunction with a future financing round.
A comprehensive appraisal of a business undertaken by a prospective buyer, especially to establish its assets and liabilities and evaluate its commercial potential.
A contingency plan that is executed by an investor, trader, venture capitalist, or business owner to liquidate a position in a financial asset or dispose of tangible business assets.
A business model where basic services are provided free of charge while more advanced features must be paid for.
Strategies focused solely on growth, often used by early-stage startups who need massive growth in a short time on small budgets.
An organization designed to accelerate the growth and success of entrepreneurial companies through an array of business support resources and services.
The process of offering shares of a private corporation to the public in a new stock issuance.
A prediction of the net profit attributed to the entire future relationship with a customer.
A version of a product with just enough features to be usable by early customers who can then provide feedback for future product development.
A shift in business strategy to test a new approach regarding startup's business model or product after feedback from the market.
The valuation of a company prior to an investment or financing round.
The value of a company after an investment has been made. It is equal to the pre-money valuation plus the amount of the new investment.
The amount of time the company has until it runs out of cash, assuming current income and expenses remain constant.
A software licensing and delivery model in which software is licensed on a subscription basis and is centrally hosted.
The first official equity funding stage. It typically represents the first official money that a business venture or enterprise raises.
A non-binding agreement setting forth the basic terms and conditions under which an investment will be made.
A privately held startup company valued at over $1 billion. The term was coined in 2013 by venture capitalist Aileen Lee.