Terminology relevant for this career area
TERM
SIMPLE DEFINITION
Minimum Viable Product (MVP)
A basic version of a product with essential features, designed to quickly gather user feedback and validate the concept's viability before investing further development resources.
Bootstrapping
The practice of building and growing a start-up using personal savings or revenue generated by the business, without external funding or investment.
Pivot
A strategic shift in a start-up's business model, product, or target market based on insights gained from customer feedback or market changes.
Burn rate
The rate at which a start-up uses up its capital to cover operating expenses, indicating how long the company can sustain its operations before requiring additional funding.
Runway
The estimated amount of time, usually in months, that a start-up can continue operating without additional funding, calculated by dividing available capital by the monthly burn rate.
Unicorn
A start-up valued at over $1 billion, typically characterized by rapid growth and innovation, often in the technology sector.
Exit Strategy
A plan outlining how start-up founders and investors intend to realize their investment, usually through methods like acquisition, initial public offering (IPO), or merger.
Bootcamp/Accelerator
Intensive programs designed to help start-ups grow rapidly by providing mentorship, resources, and networking opportunities over a short period.
Pitch Deck
A presentation that provides a concise overview of a start-up's business plan, including its problem-solving approach, market opportunity, financial projections, and team.
Churn Rate
The rate at which customers stop using a product or service over a specific period, often used to measure customer retention and satisfaction.
Disruptive Innovation
A groundbreaking product or service that significantly alters an industry's landscape, challenging established players and traditional business models.
Seed funding
The initial capital raised by a start-up to support product development and early-stage operations, typically provided by angel investors or venture capitalists.
Angel Investor
An individual who provides early-stage funding to start-ups in exchange for equity ownership, often offering mentorship and industry connections as well.
A/B Testing
A method of comparing two versions (A and B) of a product or webpage to determine which one performs better in terms of user engagement or conversion rates.
Scalability
The ability of a start-up to handle increased demand or growth without sacrificing performance or quality, often involving the development of systems and processes that can be easily expanded.
Product-Market Fit
The point at which a start-up's product or service aligns perfectly with the needs and preferences of its target market, leading to widespread customer adoption.
Venture Captial
Institutional funds provided by venture capital firms to start-ups in exchange for equity, aiming to help start-ups scale and grow rapidly.
Customer Acquisition Cost (CAC)
The average cost a business incurs to acquire a new customer, including marketing, sales, and other related expenses
Elevator Pitch
A concise and compelling description of a start-up or product that can be delivered within the duration of an elevator ride, typically lasting around 30 seconds to a minute.
Gamification
The integration of game design elements and principles into non-game contexts, such as business applications, to enhance user engagement and motivation.
Saas (Software as a Service)
A software distribution model where applications are hosted by a third-party provider and made available to customers over the internet, typically on a subscription basis.