Friday 29 January 2016

Glossary: Startup and Venture Capital terms you should know

The startup world operates on a lot of lingo. This guide will give you a better context to understand the language of startups, venture capitalists, angel investors, and incubators.

Acquisition: When one company buys controlling stake in another company. Can be friendly (agreed upon) or hostile (no agreement).

Agile: A philosophy of software development that promotes incremental development and emphasizes adaptability and collaboration.

Angel investor: Individual who provides a small amount of capital to a startup for a stake in the company. Typically precedes a Seed Round and usually happens when the startup is in its infancy.

B2B: Business to business. This describes a business that is targeting another business with its product or services. B2B technology is also sometimes referred to as enterprise technology. This is different from B2C which stands for business to consumer, and involves selling products or services directly to individual customers.

Benchmark: The process by which a startup company measures their current success. An investor measures a company's growth by determining whether or not they have met certain benchmarks. For example, company A has met the benchmark of having X amount of recurring revenue after 2 years in the market.

Read the full glossary

No comments:

Post a Comment

Pl. post your comments