A company that can move quickly and easily, promotes adaptive planning, evolutionary development and delivery and encourages rapid and flexible response to change.
An individual, who is willing to invest in an early stage start up company. Angel investors are considered one of the oldest capital sources start-ups
The rate that a new company uses up its investors to finance costs before generating positive cash flow from operations, it could be considered as a measure of the negative company cash flow until it reaches the break even point.
AKA “booting” refers to the period where entrepreneurs are self sustained, without external help.
Bootstrapping in the startup “lingo” means the launching of a low budget venture, which means that you will most likely outsource some of your R&D, servers, work from home and have zero salary. You will most likely pay for legal and accounting services. The rest? you’ll need to pick up yourself and manage as you go along.
The business plan describes the business, its goals and objectives, the business strategies, the target market and “go to market plan” and the financial forecasts. It basically shows how well your business will run.
The Business Model is a strategic template for developing new existing business models. It is a visual description of the firm’s value proposition, infrastructure, segments and customers, and finances. It basically describes how your company will create, deliver and capture value.
Customer Development Model
The Customer Development Model is created by actually talking to the customers and developing a product or service they are interested in. to do that the startups should to get early and frequent customer feedback prior to developing their products too far down the “R&D” line.
An new product or service that creates new markets and segments, by doing so it disrupts an existing market and value network. Usually that means the lunch of a new technology that improves a product or service in new ways such as new design for new segments, new market and better pricing or total value proposition.
The elevator pitch is a very concise, very planned, and very well trained methodology to provide a description of your venture that the “guy next door” would understand in the time it would take the elevator to go up or down.
An entrepreneur is a person who is willing to take financial risks and create new business ventures. The word comes from French “entre” (to enter) & “prendre” (to take), and in a generally is applicable to anyone who is starting a new venture.
The term means the ownership of any asset, after all debts related to such asset are paid off. i.e. equity = Assets – Liabilities. In the startup scene, it is usually describes the venture giving up a part of the business in exchange for money.
An executive summary, AKA management summary, summarizes the business plan key messages in a concise manner helping the reader to become rapidly acquainted with the business opportunity, therefore, it must be short and to the point.
Business incubators are programs that provide support to the development of start up ventures through a mechanism of a business support ecosystem managed by the incubator management team and mentors.
Maximize customer value while minimizing cost. lean actually means the creation of higher customer value for with less resources.
Non Disclosure Agreement (NDA)
The non-disclosure agreement (NDA), is a confidentiality agreement, which is made between legal parties in order to not to disclose any information shared.
Venture Capital (VC)
A VC provides long-term capital to companies in order for them to achieve growth and success. VC vary from taking a usual loan by the VC being invested in the business in exchange for equity, thus, as shareholders, the VC’ returns are dependent upon the actual growth and success of the business, therefore, VC’s are mainly interested in ventures representing high growth potential with experienced and ambitious management teams who can turn their plans into an reality.
It is an estimate of the worth of a business actual and future assets.
A process that is conducted by potential investors or experts on their behalf, it is actually a type of an investigation analyzing the risk of the investment and authenticating the company’s displays. During the process the sales and profit data, assets, liabilities, business plans, contracts, key employees and customers, intellectual property, technology and any critical business factor is being scrupulously reviewed.
It means seed financing for startup, first stage financing or round A.
Initial Public Offering (IPO).
Means the first time a company is offering the sale of its shares and securities to the public thus converting from being a private company to public company with public ownership.
Non-individual investors and shareholders making investments on a regular basis. Such type of investors for example are trust, pension & mutual funds and they would invest in venture capital firms.
An investment banker is usually a firm or an investment professional that underwrites securities, and functions as a broker, deals with corporate finance, M&A advisory services etc. Investment bankers can find investors for a fee such as percentage of the amount raised, equity or both. In some cases they charge a retainer fee.
Joint Venture (JV)
An JV is a legal arrangement which provides it’s parties with control of a specific business undertaking.
Means an acquisition of a company which is financed mainly by debt.
A limited offering means the offering of securities which are exempt from registration due to existing exemptions for the limited size of this offering and the limited number of purchasers in it.
Refers to a business structure where one company becomes a part of another company.
Options are securities providing the right to buy or sell shares at a fixed date and rate.
An offering that is exempt registration and is limited in its distribution.
A financial statement reflects a situation as though certain transactions had already happened. For example, a pro forma balance sheet anticipating the results of the offering.
Means the main selling document in an offering provided to investors. It provides information about the investment and the company.
A presentation delivered by the company's management, of a business to potential investors, brokers, and dealers in order to raise capital
Seed money aka seed funding
Seed is a form of securities offering where an investor buys part of a company. It is an early investment with a goal to support the business until it can generate its own income or until it is ready to raise more money and grow.
Series (preferred stock) A
Series A is the first round of financing offered to the venture capital form. Series A preferred stock can be converted into commun stock later on for example when the company goes public or being sold.