Business Models
A model where customers pay recurring feeds for continuous access to a product or service.
A subscription-based model
The first round of funding a startup raises from investors.
The seed round
The meaning of the acronym MVP.
Minimum Viable Product
The specific group of consumers a startup aims to reach with its products or services.
Target audience
An early model of a product used to test concepts and functionality.
A prototype
The meaning of the acronym B2B.
Business to Business
The meaning of the acronym VC.
Venture Capital
A program that provides funding, mentorship, and resources to early-stage startup.
A startup accelerator
The cost associated with acquiring a new customer.
Customer acquisition cost (CAC)
Information provided by users regarding their experience with a product.
User feedback
A business model where companies sell products directly to customers, rather than traditional retail channels.
Direct to customers (DTC)
An individual who provides capital to startups in exchange for equity.
An angel investor
The rate at which a startup is spending its capital before generating revenue.
The "burn rate"
A strategy that encourages customers to share a product or service with others, creating exponential growth.
Viral marketing
When a product satisfies the need of a large enough market to sustain growth.
Product-market fit
Offering basic services for free charging for premium features.
Freemium model
A method of raising capital where a startup offers shares of the company to the general public in exchange for investment through what is usually an online platform.
Equity crowdfunding
An individual who helps start a company and shares ownership and responsibility.
A co-founder
Innovative marketing techniques used by startups to quickly grow their user base.
Growth hacking
A flexible approach to product development that emphasizes iterative work and adaptability.
Agile development
A significant shift in business strategy to accommodate new market conditions.
A pivot
The first significant round of funding typically raised from institutional investors after the seed round.
Series A Round
Starting and growing a business without external funding, relying on personal resources, a good example of this is the company Patagonia.
Bootstrapping
The percentage of customers who stop using a product or service within a given period.
"Churn rate"
A change in product strategy based on feedback or market conditions.
A pivot