3. Terminology relevant for this pathway
Term
Simple definition
Start-Up
A newly established company or business venture designed to bring innovative products, services, or solutions to the market.
Innovation
The process of introducing new ideas, methods, products, or services that result in positive changes or advancements.
Accelerator
A program that helps start-ups accelerate their growth through mentorship, funding, and resources, typically in exchange for equity.
Incubator
An organization that provides start-ups with resources, mentoring, office space, and networking opportunities during their early stages
Business Plan
A comprehensive document that outlines a start-up's goals, strategies, financial projections, and operational plans to guide its development and growth.
Disruption
A phenomenon where an innovation or new technology radically changes an industry or market, often displacing existing products or services.
Scalability
The ability of a business to grow rapidly while maintaining or improving its efficiency and performance.
Lean start-up
A methodology that emphasizes building a start-up through validated learning and iterative development, focusing on customer feedback and data analysis.
Intellectual Property (IP)
Legal rights that protect creations of the mind, such as patents, trademarks, copyrights, and trade secrets, often crucial for innovation protection.
Bootstrapping
Building and growing a start-up using personal funds or revenue generated by the business itself, without external investment.
Venture Capital
Funding provided by investment firms to start-ups in exchange for equity, typically at different stages of growth.
Angel Investor
An individual who provides capital, often in exchange for equity, to early-stage start-ups to help them grow.
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.
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
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.
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.
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.
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.
Scale-Up
A company that has moved beyond the start-up phase and is experiencing rapid growth in terms of revenue, customer base, and market presence.
Hypergrowth
An exceptionally fast rate of expansion in terms of revenue, user acquisition, or market share, often associated with successful scale-ups.
Market Penetration
The strategy of increasing a company's market share within existing markets by attracting more customers or convincing current customers to use more of its products/services.
Market Expansion
The strategy of entering new markets or segments to reach a broader customer base, often involving geographical or demographic diversification.
Cross-Selling
Offering existing customers additional or related products or services to increase their average spending and enhance their overall experience.
Upselling
Convincing customers to purchase a higher-tier or more advanced version of a product or service, thereby increasing their order value.
Churn Mitigation
Strategies and tactics aimed at reducing customer churn (the rate at which customers stop using a product or service) to improve customer retention.
Employee Onboarding & Culture
Developing effective onboarding processes and nurturing a strong company culture to support new employees and maintain cohesion as the company grows.
Growth Hacking
A data-driven approach to rapid experimentation across marketing, product development, and other areas to identify the most effective ways to drive growth.
AARRR Framework
Also known as the Pirate Metrics, it stands for Acquisition, Activation, Retention, Revenue, and Referral – a model used to analyze and optimize the customer journey.
Innovation Ecosystem
A network of organizations, resources, and stakeholders that collaborate to drive innovation.
Open Innovation
Collaborating with external partners to bring in new ideas, technologies, and expertise for innovation.
Corporate Venturing
Corporations investing in external start-ups or creating their own ventures to drive innovation.
Design Thinking
A problem-solving approach that emphasizes empathy, creativity, and iteration to develop solutions.
Intrapreneurship
Employees within a company taking an entrepreneurial approach to develop and launch new initiatives.
Proof of Concept (PoC)
A prototype or demonstration to validate the feasibility and potential of a new product or technology.
Disruptive Innovation
An innovation that creates a new market by offering a simpler, more convenient, or lower-cost solution.
Technology Scouting
The process of actively seeking and identifying emerging technologies that could be valuable for business.
Business Model Innovation
Creating new ways to deliver value to customers, often involving changes to revenue streams and processes.
Strategic Partnerships
Collaborative relationships with external entities to access resources, technologies, and market insights.
Business Development
Identifying growth opportunities, forming partnerships, and executing strategies to expand business.