Startups
Fundraising, validation, equity, traction, and early company building.
Scaling
The process of growing a business by increasing output and revenue while keeping complexity and overhead costs from rising at the same rate.
MVP
A basic first version of a product containing only the essential features needed to gather feedback and test assumptions with real customers.
Equity
Ownership interest in a company, represented by shares or stock, which defines a person's share of control, risks, and financial returns.
Dilution
The decrease in the ownership percentage of existing shareholders when a company issues new shares of stock.
Cap table
A spreadsheet or ledger that shows the ownership breakdown of a company, including founders, investors, and employee options.
Option pool
A block of company shares set aside for future employees, advisors, and consultants to align their incentives with company growth.
Vesting
The process by which an employee or founder earns full ownership of their shares or stock options over a set period of time.
Pivot
A strategic change in business direction to test a new hypothesis about a product, target audience, or business model.
Traction
Quantitative evidence of customer demand and engagement, showing that a business is starting to gain momentum in its market.
TAM
The total revenue opportunity available if a business achieves one hundred percent market share for its product or service.
SAM
The portion of the total addressable market that a business can actually target and serve based on its geography, technology, and business model.
SOM
The specific portion of the serviceable addressable market that a business can realistically capture, especially in the short term.
Business Model
A company's core plan for creating value, delivering it to customers, and capturing revenue to remain profitable.
Business Model Canvas
A one-page strategic management tool used to define, visualize, and analyze the key components of a business model.
Problem-Solution Fit
The stage where a startup identifies a real, meaningful customer problem and designs a solution that addresses it.
Product-Market Fit
The stage where a startup has built a product that successfully satisfies a strong market demand.
Moat
A business's ability to maintain a competitive advantage to protect its market share and long-term profits.
Pitch Deck
A brief presentation used by founders to give investors a quick overview of their business model, market opportunity, and growth plans.
Term Sheet
A non-binding agreement setting forth the basic terms and conditions under which an investment will be made.
SAFE
A simple contract between a startup and an investor that provides the investor with the right to receive equity in the future upon a specific triggering event.
Pre-money
The valuation of a company before it receives a new round of investment.
Post-money
The valuation of a company immediately after it receives a new round of investment.