Startup & Tech Glossary

A/B testing is a method where two versions (A and B) of a webpage or app are compared to see which performs better in achieving a specific goal, helping you make data-driven decisions.

An API (Application Programming Interface) is a set of rules and protocols that allows different software applications to communicate with each other.

ARPU (Average Revenue Per User) is a key metric that calculates the average revenue generated by each user of a product or service over a specific period.

Annual Recurring Revenue (ARR) is the predictable, annual revenue generated from subscription-based products or services.

Affiliate marketing is a performance-based marketing strategy where a company rewards affiliates for driving traffic or sales through their marketing efforts.

Agile development is a software development approach that emphasizes flexibility, collaboration, and iterative improvements.

Agile methodology is an iterative approach to project management that emphasizes flexibility, collaboration, and delivering value early and often.

An angel investor is an individual who provides financial backing for startups or small businesses, usually in exchange for ownership equity.

Artificial intelligence (AI) refers to the simulation of human intelligence processes by machines, such as learning, reasoning, and problem-solving.

B2B (Business-to-Business) refers to commerce transactions between businesses, such as a company selling products or services to other businesses instead of individual consumers.

B2C (Business-to-Consumer) refers to businesses that sell products or services directly to individual consumers.

Big data refers to the vast amounts of structured and unstructured data that businesses generate daily. It involves processing and analyzing this data to uncover insights and make informed decisions.

A blockchain is a decentralized, distributed ledger that securely records transactions across a network of computers.

Bootstrapping is the practice of starting and growing a business without external funding or investment.

Brand awareness refers to how familiar your target audience is with your brand. It indicates the level of recognition and recall your brand has among potential customers.

Burn rate is the rate at which a startup or maker is spending its capital to cover expenses like salaries, marketing, and operations.

The Customer Acquisition Cost to Lifetime Value ratio is a metric used to assess the efficiency of your marketing efforts. It compares the cost of acquiring a customer to the revenue that customer generates over their lifetime.

CRO (Conversion Optimization) is the practice of improving your website or app to increase the percentage of visitors who take a desired action, such as signing up or making a purchase.

CTR (Click-Through Rate) measures the percentage of users who click on a specific link out of the total number of users who view the link.

Cash flow refers to the net amount of cash and cash-equivalents moving in and out of a business. It is crucial for startups to manage cash flow effectively to ensure they have enough liquidity to cover expenses and grow sustainably.

Channel optimization involves refining and maximizing the performance of marketing channels to boost user acquisition and engagement.

Churn mitigation refers to strategies and actions taken to reduce customer churn rate, which is the percentage of customers who stop using a product or service over a given period.

Churn rate is the percentage of customers who stop using your product or service within a specific period. It helps you gauge customer retention and overall satisfaction.

Competitive advantage is what sets your startup apart from competitors and allows you to outperform them in the market.

Competitive analysis is the process of identifying and evaluating your competitors to understand their strengths, weaknesses, and market position in relation to your own startup or product.

Content marketing is a strategic approach focused on creating and distributing valuable, relevant content to attract and engage a target audience.

Convertible notes are a type of short-term debt that startups can use to raise funds from investors, with the debt eventually converting into equity in a future funding round.

Cryptocurrency is a digital form of currency that uses cryptography for secure and decentralized transactions.

Customer Acquisition Cost (CAC) is the total cost a business incurs to acquire a new customer. It includes all expenses related to marketing, sales, and onboarding.

Customer acquisition channels are the various ways through which businesses attract and convert customers. These channels can include social media, SEO, content marketing, and partnerships.

The customer acquisition funnel is a visual representation of the stages a potential customer goes through before making a purchase, from awareness to conversion.

Customer churn analysis is the process of identifying and analyzing the rate at which customers stop using a product or service.

A customer feedback loop is the process of collecting, analyzing, and implementing feedback from customers to improve products or services.

The customer journey is the process a customer goes through from initial awareness to the final purchase and beyond.

Customer journey mapping is the process of visualizing and understanding the stages a customer goes through when interacting with a product or service, from initial contact to post-purchase support.

The customer lifetime journey refers to the stages a customer goes through from first discovering your product to becoming a loyal advocate over time.

Customer relationship management (CRM) is a strategy to manage interactions with customers throughout their lifecycle, aiming to improve customer satisfaction and loyalty.

Customer retention refers to the ability of a business to keep existing customers engaged and satisfied, ultimately leading to repeat purchases and long-term loyalty.

Customer satisfaction score is a metric used to gauge how happy customers are with your product or service. It helps you understand if your customers are satisfied with their experience.

Customer segmentation is the process of dividing your customer base into groups with similar characteristics or behaviors to better tailor your products, marketing strategies, and services.

Customer success is the practice of ensuring customers achieve their desired outcomes while using your product or service, leading to satisfaction, retention, and loyalty.

Customer success management involves ensuring customers achieve their desired outcomes through proactive support and guidance.

Customer validation is the process of testing and confirming that customers are willing to use and pay for your product or service before fully investing in its development.

DevOps is a set of practices that combines software development (Dev) and IT operations (Ops) to improve collaboration and efficiency in delivering high-quality software.

Email marketing is the practice of sending commercial messages to a group of people via email. It is an effective way for startups to reach and engage with their target audience.

Equity is ownership in a company represented by shares. It is a key way to attract and retain talent, align interests, and raise capital.

Feature creep refers to the gradual addition of unnecessary or overly complex features to a product beyond the initial scope, often leading to delays, increased costs, and decreased user satisfaction.

GDPR is a data protection regulation that aims to protect the personal data of individuals within the EU. It sets guidelines on how businesses should collect, process, and store this data.

Growth hacking is a strategy focused on rapid experimentation across marketing channels and product development to identify the most efficient ways to grow a business.

Growth metrics are key performance indicators that help measure the success and progress of a startup by tracking various aspects of growth such as user acquisition, retention, and revenue.

Influencer marketing is a strategy where businesses collaborate with individuals who have a significant online following to promote their products or services.

Key Performance Indicators (KPIs) are specific metrics used to track and measure the performance of a business in achieving its strategic objectives.

Kanban is a visual project management system that helps teams track work progress and manage tasks efficiently.

Lifetime Value (LTV) is the total revenue a customer is expected to generate over the entire relationship with your business. It helps you understand the long-term value of acquiring and retaining customers.

Landing page optimization involves refining the design and content of a webpage to improve user experience and increase conversions.

A Lean Canvas is a one-page business plan template that helps startup founders quickly and effectively validate their business ideas and strategies.

The Lean startup methodology advocates for building a minimum viable product to quickly validate business ideas, minimize waste, and iterate based on customer feedback.

A liquidity event refers to a situation where an investor or company sells their ownership stake in a startup, converting their equity into cash.

Monthly Recurring Revenue (MRR) is the predictable revenue a company expects to receive every month from subscription-based customers.

Machine learning is a type of artificial intelligence that enables systems to learn and improve from experience without being explicitly programmed.

Market disruption occurs when a new product or service significantly changes the way an industry operates, often displacing existing market leaders.

Market fit analysis is the process of evaluating how well a product meets the needs and demands of a specific market segment.

Market penetration refers to the strategy of increasing market share by selling more of your existing products or services in the current market.

Market positioning is how your product or brand is perceived by consumers in relation to competitors, based on key attributes and target audience.

Market segmentation is the practice of dividing a broad target market into smaller, more defined groups of consumers who have similar needs or characteristics.

Market share is the percentage of total sales in an industry that a company holds. It shows how well a business is performing compared to its competitors.

A marketplace model is a business approach where a platform connects buyers and sellers to facilitate transactions.

Microservices are a software development approach where applications are broken down into small, independent services that communicate with each other through APIs.

A Minimum Viable Product (MVP) is a basic version of a product with just enough features to attract early adopters and validate the core idea, while minimizing time and resources spent on development.

A Minimum Lovable Product is the smallest version of your product that customers adore and find value in, focusing on delivering a delightful user experience.

A monetization strategy is a plan that outlines how a startup will generate revenue from its products or services.

A network effect occurs when the value of a product or service increases as more people use it. It can lead to exponential growth and stronger market positioning.

Network scalability refers to the ability of a network to handle growth and increased traffic without sacrificing performance.

A pivot is a strategic change in a startup's direction to test a new business model when the current one is not proving successful.

Product adoption rate refers to the speed at which customers start using a new product or feature. It measures how quickly your target audience embraces your offering.

A product backlog is a prioritized list of tasks, features, and enhancements that need to be completed for a product.

Product differentiation is the process of distinguishing your product or service from competitors by highlighting unique features or benefits that set it apart in the market.

A product roadmap is a strategic document that outlines the vision and direction of a product over time, including key features, milestones, and priorities.

Product-market expansion refers to the strategy of introducing a product to new markets or expanding the offerings to meet the needs of existing markets.

Product-market fit is when a product satisfies a strong market demand, resulting in high customer satisfaction and sustainable growth.

Product-market positioning is how your product is perceived by your target market in relation to competitors, helping you stand out and attract customers.

A product-market strategy outlines how a company's product will meet the needs of a specific market segment, guiding decisions on pricing, distribution, and promotion.

ROI (Return on Investment) is a measure used to evaluate the efficiency or profitability of an investment. It shows how much return or profit is generated relative to the cost of the investment.

Retention rate is the percentage of customers that continue to use your product over a specific period. It indicates customer loyalty and satisfaction.

A runway refers to the amount of time your startup can operate before running out of resources, typically measured in months. It reflects your financial sustainability and ability to reach key milestones.

An SDK (Software Development Kit) is a set of tools, libraries, and documentation that helps developers build software applications for specific platforms or services.

Search Engine Marketing (SEM) is a form of online advertising that promotes websites by increasing their visibility in search engine results pages through paid advertising.

SEO (Search Engine Optimization) is the practice of optimizing your website to rank higher in search engine results, increasing visibility and organic traffic.

Software as a Service (SaaS) is a cloud-based software delivery model where users access applications via the internet on a subscription basis.

Scalability refers to the ability of a system to handle growth and increased workload without sacrificing performance.

Scrum is an agile project management framework that emphasizes iterative development, frequent communication, and collaboration within small, self-organizing teams.

Seed funding is the initial capital raised by a startup to validate its idea, develop a prototype, and conduct early market research.

Series A, B, and C funding refer to rounds of investment that startups raise from venture capitalists as they grow.

Social media marketing involves using social platforms to promote your products or services, engage with your audience, and drive traffic to your website.

Unit economics refer to the direct revenues and costs associated with a single unit of a product or service. It helps startups understand the financial viability of their business model on a per-unit basis.

User Experience (UX) refers to the overall experience a person has when interacting with a product or service. It focuses on making the interaction seamless, intuitive, and enjoyable for the user.

The user interface (UI) is the visual and interactive part of your product that users interact with, including buttons, menus, and screens.

User engagement refers to the measure of how actively users interact with your product or service. It includes actions like visiting, clicking, sharing, and spending time on your platform.

User onboarding is the process of guiding new users to successfully start using a product or service.

A user persona is a fictional representation of your ideal customer based on research and data, helping you understand their needs, behaviors, and preferences.

Value creation is the process of generating and delivering benefits to customers that exceed the cost of production, resulting in a positive impact on the business's financial performance and market competitiveness.

Venture capital is funding provided by investors to early-stage startups with high growth potential in exchange for equity ownership.

Virality refers to the ability of a product or content to spread rapidly among a large audience through sharing and word-of-mouth.