Startup Basics
A new business with a creative idea, often planning to grow very quickly.
What is a startup?
An early investor who puts their own money into a startup in exchange for a piece of the company.
What is an shareholder?
A scenario where a startup is bought by a larger, more established company.
What is an acquisition?
A region in California famous for its many tech companies and startups. (Hint: Google, Apple, Netflix)
What is Silicon Valley?
The title of the 2010 movie about the founding of Facebook.
What is The Social Network?
The plan for how a business will make money.
What is a business model?
An investor who gives money to a startup with high growth potential, hoping for a big profit later.
Who is a venture capitalist (VC)?
The amount of money a startup spends each month, like how much fuel a rocket uses.
What is burn rate?
A city with a famous street where major financial companies like banks and stock exchanges are located.(Hint: Coca-Cola Co., Visa, General Motors)
What is New York City (or Wall Street)?
This company, founded by Ray Kroc, was famously expanded from a small burger joint into a global empire.
What is McDonald's?
A short, powerful description of a business idea, like what you would say to an investor in a quick ride up a building.
What is an elevator pitch?
This is the money that a company raises from investors in exchange for a small percentage of ownership.
What is equity?
A term for a merger between two companies in the same industry
What is horizontal integration?
This is the city in the United Kingdom where many large international banks and financial firms have their headquarters.
What is London?
Based on a true story, this Martin Scorsese film, starring Leonardo DiCaprio, follows the rise and fall of this real-life stockbroker whose firm, Stratton Oakmont, was ultimately shut down for running a widespread "pump and dump" penny-stock scam.
What is the Wolf of Wall Street?
The first small version of a product or service that a startup builds to test its idea.
What is a Minimum Viable Product (MVP)?
The financial term for how much a company is worth.
What is valuation?
When a company becomes available for anyone to invest in by selling its stock on a public market.
What is an Initial Public Offering (IPO)?
This city in China is known as a major international financial center, especially for its large stock market.
What is Shanghai (or Hong Kong)?
The name of the famous TV show where entrepreneurs pitch their business ideas to a panel of wealthy investors like Mark Cuban and Lori Greiner.
What is Shark Tank?
A term for when a company has found the right customers who really love their product.
What is product-market fit?
The percentage of a company that a founder or investor owns.
What is an equity stake?
The plan for how investors and founders will get their money back from a startup, for example, through an IPO or sale.
What is an exit strategy?
This city-state in Southeast Asia is known for its strong financial regulations and position as a global financial hub.
What is Singapore?
This popular streaming services' stock price went down when the COVID-19 pandemic restrictions eased and people started going out more. (Hint: This streaming service does not allow multiple households to stream on the same joint account)
What is Netflix?