Startup Terms: Handy Jargon for Newbie Entrepreneurs
he term Startup means the primary stage of any company or business. Generally, they specialize in a particular product or service that the entrepreneur wants to bring on the market.
For being a successful businessman, you should have up to date knowledge about the startup terms and to get comfortable with the business and more especially with the entrepreneurial lingos.
However, for gaining experience, every entrepreneur should read various textbooks or articles. But many of them leave reading because of high functioning jargon, which is challenging to understand for a fresher businessman.
Having no knowledge about startup vocabulary, it takes ten times longer to understand an article about any startup. To make this problem solved, here are some latest glossaries for helping the entrepreneurs in their early funding stage.
Introducing Some Extraordinary Startup Terms
Some years ago, we really didn’t think about using these kinds of entrepreneurial words frequently. When the startup era rises globally and normalizes in our middle life society, a whole new bundle of startup vocabulary or startup company language has finally popped out. So here we tried to assemble some of the handy jargon alphabetically.
Maybe this word sounds like a speed control engine, but absolutely not. An accelerator is a well-built organization which provides mentorship, idea, advice, resources for helping the small startups to grow.
Acquisition or Acqui-hire
When a successful business company owns the stake of another company, it is known as acquisition. This agreement can be done as friendly, which means there will be some rules or laws upon company holders.
Sometimes it can be done without any deal. From a report, we are able to know that 60% of acqui-hired companies are internet companies and 38% of them are mobile companies between 2012-2013(Source: CBInsights acqui-hire report).
It refers to the concept of software development that has an excellent vision for promoting incremental development, adaptability, and collaboration.
An investor or a group of investors who provide an amount of capital to support a growing company are angel investors. An angle can be a successful entrepreneur, friends, or family who are willing to invest in a great business idea.
Generally, they invest in exchange for equity or stake. Sometimes the investors also offer mentorship and guidelines alongside money. Typically this investment occurs in the initial stage of a successful company.
B2B and B2C
The meaning of B2B is business to business. And it describes that a company is targeting another company for their product or developed service. B2B technology is known as enterprise technology sometimes.
Moreover, B2C is business to customers. And it refers to providing all services as product dealing, product selling, product guarantee directly to the customers.
Bootstrapping is When you finance your own company or a startup idea. To develop your concept from a dream to a reality, it needs a wealthy fund. Generally, People bootstrap with their hard-earned money, credit balance, bank amount to build up their firm.
After using your own funding, if you can provide an excellent service or prove your hypothesis, you are successfully bootstrapping.
A loan that is taken for a short period of time, such as two weeks or three weeks, Until the entrepreneurs, manage a long-term funding proposal for their firm.
Frequently, This term refers to the measurement of negative cash flow. That means how quickly a company runs out of their initial capital. Surprisingly many companies lose before they break and then they start to make a profit.
When the burn rate of your company increases slightly and revenue falls, it is high time to take decisions on expenses more seriously, such as reducing your staff.
Capital is the lifeblood of any business. Without money, it is not possible to start your company. Entrepreneurs raise their funding to start a business successfully and keep raising their funds from many investors to grow their business and take it into the next level.
When a company takes loans from an internet-based investor, the accrued credit turns into the exchange of equity at a later case. Typically this happens at the early funding stage of any company. At this moment, it is tough to fill up the valuation, and also investing in another company brings high risk.
Moreover, the authority also allows the entrepreneurs to delay assessment while they are busy with fundraising in the primary stage of their companies.
For raising the fund, an entrepreneur sells their bond, bills, or notes to their investors and also promises that they will pay back the money with a reasonable interest rate.
This entire process is recognized as debt financing. This process is usually performed by the companies which are in their late stage. From this system, both parties get benefited.
A Deck is the visual presentation of all visions and prospects of your company in front of a required audience. The exhibition shows a summary of the future goal and insight into your company. When the consumer knows more about your business, they trust you and feel secure to invest.
The term demography is frequently used in marketing policy. We use it to describe the age, sex, income, occupation, schooling of your regular consumer. For providing excellent service, it is necessary to collect relevant information about your ideal customer.
A web or app developer who travels through the world at the time of coding for gaining more knowledge is familiar as a digital nomad. And we have a hypothesis that there will be more than one billion digital nomads before 2035.
The term enterprise refers to a startup company that helps many business firms with technology. Basically, an enterprise is a tech-based company.
An evangelist is a person or influencer who helps you to promote your firm in front of consumers. Many well-known companies hire brand ambassadors to make their service and product accessible. So if you want to make your business more successful, then employ an evangelist.
This process is similar to crowdfunding, but there is a condition in which you have to pay the crowdfunding platform for getting investment. Also, you have to offer the equity or percentage of your company to your investors.
This is how any company gets rich instantly. In this system, company owners sell their company for a massive amount to give the investors a return of their money. The range actually depends on the variety of industries. Entrepreneurs and venture capitalists always set up an exit strategy while their company is growing continuously.
Freemium is a fabulous strategy to gain popularity. Here you have to give your basic product to your customers at free cost. When your product gets the actual market of the audience, you just have to make a reasonable price tag for that product. By following this method, you can gain double profit and also upsell the other features to your audience.
We use this word frequently to indicate the primary or initial stage of any startup company. In this stage, companies generally seek attention to get financial help or investors.
There are some incubator groups that offer help to some selected fresher businessmen or their businesses with healthy ideas, mentorship, and funding also. But in exchange, they demand an equity stake from the chosen company.
Pivot is a crucial moment for any startup company. It means an instant change in the business strategy direction of your company. We can also say that a correction to the course of startup schemes, based on the result of consumer reviews.
Seed Stage or Seed Round
The seed stage is the very first official step for financing a startup. At this stage, companies generally raise funds to build up their startup idea. So, companies offer some appealing deals that bring them, top investors.
Unicorn is a more prominent company that gets more than 1 billion us dollar valuation. When any startup crosses 10 billion worth price money, it is “Decacorn”. And when the number is 100 billion, then the term we use is “hectacorn”.
Finally, learning entrepreneurial terms is up to You
The ultimate goal for a corporation is usually to be a “Unicorn”. Yes, it is tough to be within the loop and make a remarkable place in the market for your startup company.
But, if you have got a passion and outstanding strategies, nothing can bother you. There are such a large amount of words that we use as startup terms. Here, we tried to form a convenient list of trendy jargon.
So, you can follow this list of startup investment terms as your strong point and keep practicing to attain a solid knowledge about startup terminologies.
Afrida Nower Mowmi
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