Funding

Negative Churn

Negative Churn refers to a scenario where a company's revenue is growing at a faster rate than its customer acquisition costs.

Downgrade MRR

Downgrade MRR refers to the decrease in Monthly Recurring Revenue (MRR) that a company experiences as a result of customers downgrading their subscription plans or canceling their subscriptions altogether.

Contraction Revenue

Contraction Revenue refers to the decrease in revenue that a company experiences as it loses customers and/or reduces its product offerings.

Expansion Revenue

Expansion Revenue refers to the increase in revenue that a company experiences as it expands its customer base and/or product offerings.

USP

A Unique Selling Proposition (USP) is a statement that defines the unique benefit that a product or service provides to its customers.

Growth hacking

Growth hacking refers to a set of tactics and strategies that are specifically designed to help startups achieve rapid growth.

Term Sheets

Term sheets outline the basic terms and conditions of a proposed investment. They're a crucial document in the process of raising capital for startups.

Seed Funding

Seed funding is an early stage of funding for startups and entrepreneurs.

MVP

An MVP, is a development technique in which a new product is introduced to the market with minimal features, but enough to get feedback from early adopters.

ARPC

ARPC is the average amount of revenue that a business generates from each customer.

Valuation Cap

An important part of the SAFE note is the valuation cap, which sets a limit on the price-per-share when the SAFE converts into equity.

TTM Revenue

Trailing Twelve Months (TTM) revenue is a financial metric used to measure the total amount of money your company has earned over the last twelve months.

Unit Economics

Unit economics refers to the costs and profits associated with producing and selling individual units of a product or service.

Top line vs Bottom Line Growth

Top line growth refers to the total revenue generated by a business whereas bottom line growth measures net profits after all expenses have been deducted.

ROI vs ROE

Return on Investment (ROI) gives you a sense of what you get in return for an investment, Return on Equity (ROE) measures profitability relative to equity.

MAUs

MAUs, or Monthly Active Users, are the number of users that have engaged with a company’s product or service within a given month.

Pro Rata Rights

Pro Rata Rights basically give investors the right to maintain their percentage ownership stake in a company...

Break-Even Point

A break-even point is the number of products or services that must be sold in order to cover...

Employee Share Option Pool (ESOP)

An ESOP is a pool of shares that are set aside for employees of the company.

SAFE

A SAFE is a Simple Agreement for Future Equity. It is an investment contract between an investor and a...

Rule of 40

The Rule of 40 is a metric that is used to determine the health of a software company where reven...

Net Promoter Score (NPS)

NPS is a metric that measures customer satisfaction and can be a predictor of growth.

Net Retention Rate

Net Retention Rate is a metric that measures the percentage of customers who stay wi...

CAC Payback

CAC payback is the amount of time it takes for a company to earn back the money it spe...

Convertible Note

A convertible note is a type of debt that converts to equity at a later date.

Cap Table

A cap table is simply a record of who owns equity in a company.

Bootstrapping

Bootstrapping generally refers to the act of starting and growing a company with little to no outside funding.

Income Statement

Income Statements, sometimes called Profit & Loss (P&L) Statements are a financial statement that summarizes...

Cashflow Statement

Cashflow statements are a record of the cash that flows in and out of a business over a period of time.

Balance Sheet

A balance sheet is a financial statement that provides a snapshot of a company's assets, liabilities, and...

Accredited Investor

An accredited investor is defined by the US Securities and Exchange Commission (SEC) as...

Angel Investor

An angel investor is an individual who provides capital for a business, typically a startup, usually in exchange...

Subscription Plan

A subscription plan is the most common model for pricing in the world of SaaS. With a...

Session

a Session or User Session is when a user opens an app and starts engaging with it. The...

SaaS

SaaS or Software-as-a-Service is a way of delivery applications over the Internet-as a s...

SEO

SEO or Search Engine Optimization refers to the process of improving your website to...

Runway

Runway refers to how many months your business can keep operating before it's out...

Revenue

Revenue is the money generated from normal business operations, calculated as the...

Retention Rate

In marketing and product management, retention rate refers to the percentage of c...

Paid Traffic

Paid Traffic Sources sometimes referred to as paid customer acquisition channels are...

Organic Acquisition

Refers to the amount of traffic (downloads or acquisitions) that you are able to gene...

OPEX

OPEX or Operating Expenses are the costs a company incurs for running its day-to-...

Traffic Sources (Paid & Organic)

Paid traffic are customers who click on an advertisement that you placed on a social...

MRR

MRR or Monthly Recurring Revenue is the amount of predictable revenue that a co...

Impression

An impression is when a user sees an advertisement. In practice, an impression oc...

IAP

IAPs or In-app Purchases allow users to exchange real money via the relevant app st...

Hiring Plan

A hiring plan is a comprehensive strategy that aligns hiring resources with business...

Leads

A lead is a person or business who is interested in a product or service you sell.

eCPM

eCPM or Effective Cost Per Mille is a metric used in digital advertising, typically with...

SG&A

SG&A or Selling, General, & Administration is a category of expenses that are incurred...

IMPDAU

IMPDAU or Impressions Per Daily Active Users is a KPI used in the mobile app world...

Fulfillment Cost

Fulfillment Costs are costs associated with physical delivery of a product to the cust...

Deferred Revenue

Deferred Revenue is money received by a company in advance of having earned it.

Conversion Rate

Conversion rate refers to the total number of users who buy a product or service fr...

Churn Rate

Churn Rate or Customer Churn, is the percentage of customers who stopped using a...

CPL

CPL or Cost Per Lead is a metric that measures how cost-effective your marketing...

CPI

Cost Per Install or CPI is a pricing model used in mobile application marketing camp...

COGS

COGS or Cost of Goods Sold is the total cost incurred in the production and delivery...

Customer lifetime value (CLTV)

Customer Lifetime Value (CLTV, or CLV) is a measure of the total income a business c...

CAPEX

CAPEX or Capital Expenditure is the money an organization or corporate entity spend...

CAC

CAC or Customer Acquisition Cost is the total sales and marketing costs required to a...

Burn Rate

Burn rate is a KPI used to describe how fast a company is spending it's cash to…

B2C

B2C or Business-to-Consumer refers to the process of selling products and services d...

B2B

B2B or Business to Business is a business model where you sell your products directly...

Accounts Receivable

AR or Accounts Receivable is an asset account on the balance sheet that represents…

Accounts Payable

AP or Accounts Payable is a current liability on the balance sheet that represents...

ASO

App Store Optimization aka ASO is the process of improving an app's visibility within an ap...

ARPU

ARPU or Average Revenue Per User is a company’s generated revenue that is...

ARPA

ARPA or Average Revenue Per Account is a metric used most often by subscription...ARPA vs ARPU explained