Founder & CTO glossary

An individual who provides early-stage capital and mentorship to startups in exchange for equity.

Building and growing a business using only personal finances and operating revenue.

The speed at which a startup spends its available cash reserves, typically measured monthly.

A one-page visual framework for describing and designing a company's business model.

A detailed breakdown of company ownership showing who owns what percentage of equity.

The percentage of customers who stop using your service over a given period.

Short-term debt that converts into equity during a future funding round, typically with a discount.

The average cost to acquire a new customer, including all marketing and sales expenses.

Thorough investigation and assessment of a business before finalizing an investment or deal.

Ownership stake in a company, typically represented by shares of stock.

A comprehensive plan for launching a product and reaching target customers effectively.

The difference between revenue and cost of goods sold, expressed as a percentage.

The process of offering company shares to the public for the first time on a stock exchange.

The process of attracting and capturing potential customers' interest for sales pipeline.

Dividing a broad market into smaller groups with shared characteristics and needs.

The simplest version of a product that can be released to test market demand and gather feedback.

A fundamental change in business strategy based on market feedback and performance data.

A company's estimated value immediately before receiving new investment capital.

The critical moment when a product successfully satisfies strong market demand in a target segment.

The percentage of customers who continue using your product over a specific time period.

The framework that defines how a business generates income from its products or services.

The amount of time a company can operate before running out of cash at its current burn rate.

Growing revenue exponentially while keeping costs under control to improve profitability.

The initial capital raised to validate a business idea and build an early version of the product.

The first significant round of institutional venture capital financing to scale operations.

A non-binding document outlining the key terms and conditions of an investment deal.

The total revenue opportunity available if a product achieves 100% market share.

The direct revenues and costs associated with a single unit of your business model.

The process of determining the current worth of a company in monetary terms.

The process of earning the right to equity over time, typically through continued employment.