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AI-Enabled
Refers to technologies or systems that incorporate artificial intelligence (AI) to enhance or automate tasks and decision-making processes.
Angel Investor
An individual who provides capital to startups or early-stage businesses in exchange for ownership equity or convertible debt.
B2B
Abbreviation for "business-to-business," describing transactions or relationships between companies, rather than between businesses and consumers.
B2C
Abbreviation for "business-to-consumer," referring to commerce and interactions between businesses and individual consumers.
Blockchain
A decentralized and secure digital ledger technology used for recording and verifying transactions across a network of computers.
BioTech
Short for "biotechnology," it encompasses the use of biological processes and living organisms to develop products and technologies, often related to healthcare or agriculture.
Due Diligence
The process of thoroughly researching and investigating a potential investment, acquisition, or business deal to assess its risks and benefits.
E-Commerce
Electronic commerce involves the buying and selling of goods and services over the internet or other digital platforms.
EV
Abbreviation for "electric vehicle," which is a vehicle powered by electricity rather than traditional internal combustion engines.
IPO
Initial Public Offering.
The first sale of a company's stock to the public, allowing it to be traded on a stock exchange.
SaaS
Software as a Service is a cloud-based software distribution model where software applications are hosted by a third-party provider and accessed by users over the Internet.
Web 3.0
An evolving concept of the internet that envisions a more intelligent, interconnected, and semantic web, where data is better understood and utilized by machines.
Portfolio
A collection of investments, assets, or projects held by an individual or organization for financial purposes.
Pre-seed
An early stage of financing for startups is often used to develop a concept or prototype before seeking larger investments.
Pre-vetted
Refers to candidates, investments, or opportunities that have undergone initial screening or assessment to ensure they meet certain criteria.
SAM
Serviceable Addressable Market.
The portion of a market that a company or product can realistically serve or target.
Seed
Early-stage funding is provided to startups to help them grow and develop their business ideas or products.
Series A
The first significant round of financing for a startup after the seed stage is typically used to scale operations and expand.
Series B
A subsequent round of financing for startups that have already achieved certain milestones and are looking to further grow and develop.
Series C
A later stage of funding for startups focused on expanding into new markets, scaling, or preparing for an IPO.
SOM
Serviceable Obtainable Market.
The portion of the addressable market that a company can realistically capture and serve.
Startup
A newly established business or company is often characterized by innovative ideas and the potential for rapid growth.
TAM
Total Addressable Market.
The entire potential market size for a product or service, assuming 100% market penetration.
MVP
Minimum Viable Product.
The simplest version of your product that at least partly solves the problem you identified
Burn Rate
Gross burn in the company's total expenses in a given period. Net burn is how much cash is actually veing spent (i.e. gross burn minus income)
Runway
How many months your business can keep operating before it runs out of money
MRR
Monthly Recurring Revenue
The company's total monthly subscription revenue
TTM
Trailing Twelve Months revenue
How much revenue your startup produced in the previous twelve months
ARPU
Average Revenue Per User
This is important because it costs money to add users, so how much is each one worth?
ARR
Annual Recurring Revenue
The company's total annual subscription revenue
CAC
Customer Acquisition Cost
The company's total monthly subscription revenue
LTV
Lifetime Value
In total, how much revenue does each user bring you before ceasing to be a customer?
TCV
Total Contact Value
The combined value of a customer, including up-front and recurring fees
ACV
Annual Contact Value
How much a customer. isworth to you over the course of a year
Deferred Revenue
Money received for goods or services that have not yet been produced/delivered
Total Billings
Actual revenue plus deferred revenue in a given period
MAU
Monthly Active Users
The number of people engaging with your product in a specified period
WAU
Weekly Active Users
The number of people engaging with your product in a specified period
DAU
Daily Active Users
The number of people engaging with your product in a specified period
Conversion Rate
Often used in SaaS to reflect the percentage of users that upgrade from the free tier to the paid tier
CMGR
Compound Monthly Growth Rate
Often just called MoM/month-on-month growth rate, this is usually a key metric for investors
CAGR
Compound Annual Growth Rate
CAGR(%) = (Ending Value / Beginning Value) ^ (1 / Number of Periods) - 1
Retention
The percentage of users of customers which return to your service or use your product within a defined time period
Gross Churn
The percentage of revenue lost due to cancellation or downgrades
Net Churn
When expansion revenue is greater than revenue lost through gross churn
Zero Marginal Cost
Where an additional unit can be produced and sold without any increase in the total cost of production
R + K > 1
An important metric for tracking whether growth is powered by retention (R) and virality (K) and not just by paid marketing
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