Startup Glossary

Essential startup terminology explained. From TAM to runway, learn the language of entrepreneurship and speak confidently with investors.

A

Angel Investor
A high-net-worth individual who provides capital to startups in exchange for equity or convertible debt.

B

Bootstrapping
Building a company using personal finances or operating revenue without external funding.

Burn Rate
The rate at which a company spends its cash reserves, typically measured monthly.

C

CAC
Customer Acquisition Cost - the total cost to acquire a new customer.

Cap Table
A spreadsheet showing the equity ownership, dilution, and value of equity in a company.

Churn
The rate at which customers stop doing business with a company over a given period.

D

Dream Score
A proprietary AI-generated metric that evaluates startup idea viability across multiple dimensions.

Due Diligence
The investigation and analysis process investors conduct before making an investment.

L

LTV
Lifetime Value - the total revenue expected from a customer over their entire relationship.

M

MRR
Monthly Recurring Revenue - predictable revenue a business expects to receive every month.

MVP
Minimum Viable Product - the simplest version of a product that can be released to early customers.

P

Pitch Deck
A brief presentation that provides investors with an overview of your business plan and vision.

Pre-seed
The earliest funding stage, often from founders, friends, family, or early angels.

Product-Market Fit
The degree to which a product satisfies strong market demand.

R

Runway
The amount of time a startup can operate before running out of cash.

S

SAM
Serviceable Addressable Market - the portion of TAM targeted by your products within geographical reach.

Seed Funding
The first official equity funding stage, typically used to prove product-market fit.

Series A
The first significant round of venture capital financing after seed stage.

SOM
Serviceable Obtainable Market - the realistic portion of SAM you can capture in the near term.

T

TAM
Total Addressable Market - the total revenue opportunity available if 100% market share is achieved.