Models?
In this business model, businesses pay monthly or yearly to access software applications over the internet.
Software-as-a-Service (SaaS)
This concept describes the self-reinforcing cycle of growth that accelerates a startup's success.
The Startup Flywheel
The initial version of a product with basic features, released to gather user feedback.
Minimum Viable Product (MVP)
The change in the value of a specific metric as a percentage of the previous month's value
Month over Month growth
The legal document that outlines the terms and conditions of an investment in a startup.
Term Sheet
In this business model, companies charge a monthly or yearly payment to individuals for using their app or service.
Consumer subscription
The difference between customers and users.
Customers pay. Users do not.
High-net-worth individuals who provide early-stage funding to startups in exchange for equity.
Angels or Angel Investors
The sum of all direct costs associated with making a product
Cost of goods sold (COGS)
This widely used investment instrument was created by Y Combinator to simplify early-stage fundraising for startups.
YC SAFE
In this business model, a company earns revenue by taking a percentage of transactions between buyers and sellers on its platform.
Marketplace
This term refers to the rate of a product's development, testing, and market delivery, commonly emphasized in Agile and Lean practices.
Product velocity
The valuation needed to be considered a Unicorn.
$1 Billion
This acronym represents the cost incurred to acquire a single customer.
"CAC" (Customer Acquisition Cost)
Delaware C Corp
In this model, companies charge customers based on the amount or level of usage of a product or service.
Usage-based or Pay-as-you-go
This critical phase of development is the process of engaging with potential customers to understand their needs, pain points, and preferences.
Customer discovery
A detailed record of a startup's ownership, listing shareholders and their respective stakes.
Cap table
The average revenue generated by a single customer over their entire lifetime.
Lifetime Value (LTV)
This type of debt financing gives investors the right to convert their investment into equity at a later stage.
Convertible note
Which TWO models encompass earning income by placing ads on websites and driving affiliate sales, but it might not meet the growth criteria that specific Venture Capitalists seek?
ad-based and affiliate marketing
Through what method of market estimation, calculated by multiplying the number of potential customers by the average revenue per customer, is the total addressable market (TAM) determined from the ground up?
Bottom Up TAM
This Latin term, meaning "in proportion," is used in startup funding to describe an investor's right to maintain their ownership percentage in future funding rounds.
Pro rata
The 1.___ affects a company’s financial “2.___,” which is how long the company has before its operating capital is exhausted; a higher rate means a shorter runway.
1. Burn
2. Runway
The term for the investment strategy where multiple investors pool their money together to invest in a startup.
A Syndicate