Startup slang: a cheat sheet for beginners
- Anastasia Maslo
- Oct 4, 2024
- 4 min read
Have you ever been in a situation where at a pitch session or conference, everyone around you is pouring over terms and you feel like a fifth grader in a quantum physics class? MVP, traction, round ... What are these spellings?
Today, our team, your guides to the world of business and investment, decided to give you a little lesson in #startup slang Without these words, you'll be like a tourist in a strange country: everyone around you is saying something, but you don't understand a damn thing. Let's pump up your vocabulary and make you your own in the crowd!
Basic terms you can't go anywhere without:
Startup: It's not just a new company, it's a project with an ambitious idea that wants to grow quickly and take over the market. Like a rocket that aims for the stars!
MVP: Minimum Viable Product. This is the first version of your product that you go to market with to test your idea and get feedback from users. Kind of like a “demo”, only more serious.
Pivot: It's when you change the direction of your project because you've realized that the original idea isn't taking off. It's like dancing - sometimes you have to change tactics to avoid stepping on your partner's toes.
Traction: This is an indicator that your project is gaining momentum. It can be growing sales, number of users, app downloads, etc. In short, it's when things are going up, not rolling in tatters.
Bootstrapping: This is when you start a project with your own money, without attracting investment. As they say, «your own investor».
Round: This is the stage of attracting investment. There are usually several rounds: pre-seed, seed, Series A, B, C, etc. Each round is like a new level in a game where the stakes are higher and higher.
Unit-economics: This is a calculation of how much you earn per client and how much you spend to attract them. Simply put, it's about how to make each client bring you profit rather than loss.
Burn Rate: It's the rate at which you spend money. Like the fuel consumption of a car - the higher the speed, the faster you run out of gas.
Retention: It's a measure of how many users stay with you for the long term. It's like friends - the real ones will stay with you for better or for worse.
Exit: This is the exit from a project, usually through the sale of the company or an IPO. It is like the final boss in a game - it is difficult to beat, but the reward is worth it.
FFF: Friends, Family, and Fools. This refers to first-time investors who typically invest in a startup in its earliest stages of development.
FFF investments are often a critical first step for many startups, providing them with much-needed capital to develop a product, conduct market research, and reach the first stages of development. While these investments are high risk, they can also yield significant returns if the startup becomes successful.
Venture slang to speak the same language with investors:
Funding: It's about attracting investment. Like a treasure hunt, only instead of a map, it's your business plan.
Angel: It's a private investor who invests in early-stage startups. Like a fairy godmother who helps Cinderella get to the ball.
VC: Venture Capital. This is a venture capital fund that invests in later stage startups. It is like a big brother who will help you grow and become stronger.
Dew Delegance: It's a check-up of a company before investing. It's like inspecting a car before you buy it - nobody wants to buy a cat in a bag.
Term Sheet: This is a document that spells out the basic terms of an investment deal. It is like a contract that you have to read carefully before signing.
Validation: This is a test of your idea to see if it is viable. It's like a test drive - it helps you understand whether you should buy this car.
Scaling: This is the rapid scaling of a business. It's like turning a caterpillar into a butterfly - only faster and more efficient.
Unicorn: It's a startup valued at over $1 billion. It's like a mythical creature - rare and very valuable.
And a little more slang so you're sure to be on point:
Pitching: It's about presenting your project to investors. Like performing on stage - you need to ignite the audience and convince them of your awesomeness.
Networking: It's about making useful acquaintances. It's like putting together a jigsaw puzzle - every piece is important to the big picture.
Hiring: It's about hiring employees. It's like putting together a team of superheroes - everyone has to be in their place.
Failing: It's to fail. Like falling off a bike - it hurts, but it's part of learning.
Grinding: It's about working hard. It's like running a marathon - you need patience and endurance.
So, have you pumped up your vocabulary? Now you'll definitely be able to keep up a conversation at any startup hangout and won't look like a nub.
And remember: the main thing in a startup is not words, but actions. So don't spend all your time studying slang, but go out and do your project!
What slang difficulties have you encountered?
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