Founder & CTO glossary
Quick references for the metrics, financial concepts, and technical jargon that come up in board decks and diligence calls.
Angel Investor
→An individual who provides early-stage capital and mentorship to startups in exchange for equity.
Bootstrapping
→Building and growing a business using only personal finances and operating revenue.
Burn Rate
→The speed at which a startup spends its available cash reserves, typically measured monthly.
Business Model Canvas
→A one-page visual framework for describing and designing a company's business model.
Cap Table
→A detailed breakdown of company ownership showing who owns what percentage of equity.
Churn Rate
→The percentage of customers who stop using your service over a given period.
Convertible Note
→Short-term debt that converts into equity during a future funding round, typically with a discount.
Customer Acquisition Cost (CAC)
→The average cost to acquire a new customer, including all marketing and sales expenses.
Due Diligence
→Thorough investigation and assessment of a business before finalizing an investment or deal.
Equity
→Ownership stake in a company, typically represented by shares of stock.
Go-to-Market (GTM) Strategy
→A comprehensive plan for launching a product and reaching target customers effectively.
Gross Margin
→The difference between revenue and cost of goods sold, expressed as a percentage.