# 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.