Entrepreneurship Glossary

A fixed-term, cohort-based program that provides startups with mentorship, education, and often seed funding in exchange for equity (e.g., Y Combinator, Techstars).

A high-net-worth individual who provides early-stage capital to startups, often in exchange for convertible debt or equity.

Building and growing a company using only personal savings or operating revenue, without taking external investment.

The rate at which a startup spends its available cash reserves before generating positive cash flow from operations.

A strategic tool with nine building blocks for designing, describing, and analyzing a business model on a single page.

The percentage of customers who discontinue using a product or service within a given time period.

The total cost of acquiring a new customer, including all marketing and sales expenses divided by the number of new customers gained.

The process of testing business hypotheses about customer problems and needs through direct interviews and observation.

The total revenue a business expects to earn from a single customer account over the duration of the relationship.

A process by which a smaller company with fewer resources challenges established incumbents by targeting overlooked market segments.

The decrease in existing shareholders' ownership percentage that occurs when a company issues new shares during fundraising.

A methodology for building startups through rapid experimentation, validated learning, and iterative product development.

The simplest version of a product that allows a team to collect the maximum amount of validated learning with the least effort.

A structured course correction in a startup's strategy based on validated learning, while preserving accumulated knowledge and progress.

The state in which a product satisfies a strong, demonstrated market demand, often considered the most critical startup milestone.

The length of time a startup can continue operating before exhausting its cash, calculated by dividing cash reserves by monthly burn rate.

The process of growing a business efficiently after achieving product-market fit, expanding operations without proportional cost increases.

An early funding round that provides capital for a startup to develop its product, conduct market research, and reach initial milestones.

A non-binding document outlining the key terms and conditions of a proposed investment, serving as a basis for final legal agreements.

The total revenue opportunity available for a product or service if it achieved 100% market share in its target market.

The fundamental revenues and costs associated with a business model, measured on a per-unit (per customer or per transaction) basis.

An empirical approach to demonstrating startup progress through experiments that produce measurable evidence about business viability.

A statement that describes the unique benefits a product provides, the customer problems it solves, and how it differs from alternatives.

A form of private equity financing where investors provide capital to startups with high growth potential in exchange for equity stakes.

A timeline that determines when founders or employees earn full ownership of their equity shares, typically over four years with a one-year cliff.