Startup-related words you should know. Part 2.
Ramen profitable & low hanging fruit are some phrases used in the business world – get to know the meanings!
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In today’s post, you’ll find:
Phrases that are common in the startup world + definitions.
How to set up OKRs for your project or startup.
How Miro builds products.
And much more! 😎
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Startup-related words you should know. Part 2.
More than a month ago, I wrote a post about startup world phrases and definitions. It got quite some views and great feedback! You can check the post here.
Today, I want to continue this topic and show more words from the innovative business world.
So here it goes.
Definitions
Churn Rate – the annual percentage rate at which customers stop subscribing to a service.
Burn Rate – describes how fast you go through your cash. The majority of startups lose before they break even and then make a profit.
Early Adopters – are the first users of your product. They will give you the first and honest feedback about your product. Sometimes if they love it, it’s a high chance that they will become your product ambassadors.
Gamify – If you gamify something, you add a game layer to your product that encourages people to use it with rewards of various kinds. Some great examples of companies that use gamification are Duolingo, Starbucks, Uber, and others.
Iterate – means to try something, refine it, try again, and keep trying using small steps until successful.
Market Penetration – that means how much market share is and how much you are trying to get. This is a common question by investors, and you will hear the line “how much of the pie are you trying to get?”.
Monetize – or how do you plan to make money. Without a way to monetize, most businesses die. The only exceptions are well-funded tech startups where a bet has been made that the site will get enough users so that a monetization strategy can eventually be executed.
Pivot – A change in direction as a company. Best video about pivoting.
ROI (Return On Investment) – is a way to measure how profitable an investment is. For example, when an investor puts money into a company, he wants to know what he will get out.
SaaS (Software as a Service) – is a subscription that is sold so that your user can use your software.
Term Sheet – when an investor makes you an offer to invest in your company, the term sheet is a document that outlines what they will get for what they put in.
Valuation – a valuation describes what your company is being valued at.
Value Proposition – is what makes your business uniquely attractive. Also known as USPs (Unique Selling Points).
VC (Venture Capitalist) – an investor who provides funding and expertise to early-stage startups in exchange for equity or ownership in the company.
Incubator – it offers businesses resources and mentorship to get through some of the initial growing pains of startup life.
Angel investor/Business angel – an individual who gives money to a startup company in its initial stage in exchange for a stake in the business.
Some more interesting ones:
Ramen Profitable – is an expression frequently used by Paul Graham of Y Combinator, it means that a startup has gotten to a point where they're not reliant on external funding sources to survive.
Low Hanging Fruit – these are things that can be identified to quickly bring cash in the door.
Cash Flow Positive – means that more money is coming in than going out. When you deduct your expenses from your earnings, you have a positive amount in your bank account.
Thought Leader – someone who is seen as being a leader in their field, is invited to speak at conferences, is active on social media.
Runway – the estimated length of time a startup can continue operating before using up all its funding.
Go Public/IPO – Going public is when a company puts its stock on the public market through an IPO (initial public offering).
*I added links to almost all definitions, so you can read more about them!
Did you learn some new words or phrases? Let us know by commenting, replying to this email, or messaging us.
And that’s a wrap about today’s topic, “Startup-related words you should know. Part 2.” Below, you’ll see some other opportunities, resources, and startup news that could be interesting for you.
Opportunities
🤚 Few weeks left until the biggest AI Hackathon in Baltics. You can still register.
🎲 Check this post if you’re looking for some acceleration programs.
Interesting resources
👉 OKRs are my recent discovery. Regimantas shares how to set up OKRs in your startup for maximum impact.
📹 Youtube was meant to be a video dating app. What??
😮 The story of Craiglist being bootstrapped.
Jobs
🕣 Coinvest Capital is looking for investment analysts (Lithuanian).
👨💻 Bob W. is looking for a Business Development Manager.