Click a term or metric below to reveal definitions, 1 minute videos, formulas, examples, and more. Curated by our team of Startup Finance experts.
All Metrics
102
Acquisition
9
Advertising
6
Expenses
5
Funding
11
Mobile Apps
7
Operations
16
Retention
4
Revenues
12
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.
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.
Pro Rata Rights
Pro Rata Rights basically give investors the right to maintain their percentage ownership stake in a company...
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...
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.
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...
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.
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.
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.
Break-Even Point
A break-even point is the number of products or services that must be sold in order to cover...
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...
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...
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