Disrupting disruption with disruptive disruptions since 2010.
When existing shareholders sell their shares publicly without the company itself receiving any money—basically using the company as a cash machine.
A reserve of shares set aside to recruit employees with stock options, typically carved out before valuation to dilute founders rather than investors. A necessary evil that feels like robbery when you're calculating founder ownership.
A contractual mechanism that shields early investors from dilution when a startup raises money at a lower valuation than previous rounds. It's basically insurance against your company becoming less cool than you thought it was.
A go-to-market strategy where the product itself drives customer acquisition, retention, and expansion rather than traditional sales teams. Users fall in love before ever talking to a salesperson.
Surrounded by a protective water-filled trench, which in business parlance describes a company with such strong competitive advantages that rivals can't touch them. Warren Buffett made this term famous by obsessing over companies with "economic moats" that defend market share like medieval fortifications. These days, everyone claims they have a moat, but most are more like puddles.
When a startup seeks a lead investor for their next round who isn't part of their existing investor group, potentially signaling problems or a desire for fresh perspectives. It's the venture capital equivalent of changing friend groups.
A startup that aims to be both profitable AND socially responsible, as opposed to unicorns that prioritize growth at any cost. They're real, sustainable, and less likely to leave a trail of layoffs and burned capital.
When a highly-valued startup implodes through mismanagement, fraud, or 'the market wasn't ready'—basically Elizabeth Holmes energy.
Money from professional investors betting billions annually that 1% of startups will become unicorns. A mostly efficient system for transferring wealth from LPs to founders (and from founders to VCs).
Large organizations like pension funds, insurance companies, or endowments that invest in venture funds, adding legitimacy and money but no direct feedback.
Having personal capital at risk in an investment or venture, theoretically aligning interests between founders and investors. It's the 'put your money where your mouth is' principle, except everyone's mouth is usually writing checks their bank account can't cash.
The messy dissolution of a relationship (romantic or business) where two things that were stuck together decide they'd rather never see each other again. Bonus awkwardness if they share a friend group.
Selling to other companies rather than consumers, typically involving longer sales cycles and higher contract values.
Selling directly to individual consumers, requiring massive scale and viral growth to be venture-viable.
The engineering audit where technical experts examine your code, architecture, and tech debt to see if you're about to implode.
Cloud-based software customers pay for monthly/yearly as subscriptions instead of licensing, the dominant startup business model.
Daily Active Users divided by Monthly Active Users, a metric expressing engagement where anything above 33% is considered respectable and anything below 10% is a sign of serious problems.
Using inflated company stock as currency to acquire other companies, a strategy that's great for acquirers, terrible for shareholders, and indicative of overvaluation.
The date when an employee's stock vesting accelerates, usually one year after they're granted options, when they finally own some shares (until they leave and lose the rest).
A startup incubator or venture capital term for an early-stage company breeding ground where fledgling ideas get fed, nurtured, and hopefully don't die under fluorescent lights. Think of it as the preschool for businesses that haven't figured out profitability yet.
To board a vessel or aircraft, or more metaphorically, to start something new and vaguely terrifying. Whether it's a cruise ship or a startup, embarking means you've committed and there's no backing out now.
A competitive advantage based on how easily you can reach customers. Spoiler alert: most startups don't have one and never will.
Special shares that get priority in liquidation, dividends, or control—essentially investor insurance against founder incompetence.
The realistic revenue you can capture in the next 5-10 years—the number that makes your board members slightly less nervous than TAM.