Startup Terms
The initial funding a startup receives from friends, family, or personal savings.
What is seed funding?
This ride-sharing company was founded in 2009 by Travis Kalanick and Garrett Camp.
What is Uber?
This term refers to a young company founded to develop a unique product or service.
What is a Startup?
This term describes the reduction in ownership percentage caused by the issuance of new shares.
What is dilution?
This phase seeks the first materializations of a startup. This can be done through developing prototypes, which are small experiments carried out to validate the initial idea on which a startup is based.
What is the Seed Stage?
A detailed plan describing the product, market, and financial projections of a startup.
What is a business plan?
Founded in 2004 by Mark Zuckerberg, this social media giant started in a Harvard dorm room.
What is Facebook?
A brief, persuasive speech to spark interest in what your organization does.
What is an Elevator Pitch?
The acronym EBITDA stands for this financial metric.
What is Earnings Before Interest, Taxes, Depreciation, and Amortization?
Strong market demand is met if a startup’s product or service reaches this stage. This means that there will be upward figures in terms of new customers, recurring customers, and billing. Profitability here is paramount. This is when the team starts to grow, and recruitment begins.
What is the Growth Stage?
The period when a startup begins generating enough revenue to cover expenses.
What is breakeven point?
This video streaming platform, created in 2005, was later purchased by Google.
What is Youtube?
A financial statement that summarizes a company's assets, liabilities, and shareholders' equity at a specific point in time.
What is a balance sheet?
The term for a venture capital firm's exit from an investment, typically through acquisition or IPO.
What is an exit strategy?
In this phase, companies that have already advanced in the execution of their business model move forward, consolidating their growth in both revenue and employees.
What is the Expansion Phase.
The process of raising funds by offering ownership shares to investors.
What is equity financing?
This company, known for its electric vehicles, was founded by Elon Musk in 2003.
What is Tesla?
A metric used to measure the rate at which customers stop doing business with an entity.
What is churn rate?
This document outlines the terms of an investment, including valuation and investor rights.
What is a term sheet?
The phase in which a startup is sold off or fails.
What is the Exit Phase.
This term refers to a company's first viable product that can be tested in the market.
What is a minimum viable product (MVP)?
This home-sharing platform was started in 2008 by Brian Chesky and Joe Gebbia.
What is Airbnb?
The practice of obtaining input into a project by enlisting the services of a large number of people, typically via the Internet.
What is crowdsourcing?
The process by which a startup's valuation is determined before external investment.
What is pre-money valuation?
The beginning of a phase in which the idea is left to evolve until it becomes a product or service in the market.
What is the Early Stage