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.