Disrupting disruption with disruptive disruptions since 2010.
Short-term money to keep you alive until someone actually funds you properly. Usually at slightly worse terms than you'd normally accept.
A metric suggesting that growth rate + profit margin should equal 40% for a healthy software company—8% growth with 32% margin, or 35% growth with 5% margin, both equal 40.
Proof that real customers exist, will pay for your solution, and actually want it—separating your assumptions from reality, though many founders skip this step entirely.
The vanguard or front line of a movement, army, or trend—basically the people doing cutting-edge stuff before everyone else catches on. Think of them as the cool kids who are three seasons ahead and won't shut up about it.
The constellation of measurements VCs obsess over (MRR, ARR, CAC, LTV, churn) that supposedly predict success but often just delay the realization that your growth is unsustainable.
Platforms where employees and early shareholders can sell restricted private stock before IPO, giving insiders a chance to diversify while theoretically validating company valuation.
The early release of a product to limited users for testing and feedback. It's a safe way to find bugs before the internet makes fun of you in public.
To fundamentally alter an existing market or industry with a new approach. Every startup claims to 'disrupt' something, and 99% of them are just adding a mobile app to an existing business model.
Subsequent rounds of funding representing your startup's graduation from 'scrappy' to 'possibly overvalued' to 'we definitely raised too much money.'
A division of an established corporation that invests in startups, usually with the goal of finding complementary technology or market opportunities. Big companies' way of seeming innovative without actually being disruptive.
When a startup's growth is impressive but unit economics are terrible, making it simultaneously successful and fundamentally broken—named after investor Mark Cuban's famous critiques.
A specific niche market where you can dominate quickly before expanding to larger markets, the landing zone before the broader invasion.
Total value returned divided by the original investment amount. The metric VCs use to measure how many times they multiplied their money.
A contractual protection for investors ensuring their ownership percentage doesn't decrease too much if you raise money at a lower valuation—basically punishing you for underwhelming growth.
A moderate anti-dilution clause that factors in both the down round price and the number of new shares issued—less devastating for founders than full ratchet but still painful.
Developing within existing codebase and systems, guaranteed to be slower and more frustrating than greenfield development but somehow more realistic about constraints.
A self-appointed visionary who had an idea first or adopted one early; startup world's favorite honorific for anyone owning three blockchain apps and genuine FOMO.
Predictable revenue from subscriptions—the metric that makes VCs smile because it's actually measurable.
A business model capable of achieving $100M+ in revenue within 10 years—the arbitrary threshold that separates venture-backed startup from small business.
Business-to-business sales model where your customer is another company that will spend six months getting approval to buy from you.
An SEC regulation allowing private companies to raise money from unlimited accredited investors without formal SEC registration. It's basically the loophole that makes startup funding possible.
Supposedly novel and revolutionary; corporate-speak for 'we added one feature that already exists elsewhere but with aggressively different marketing.'
The process and cost of getting new users/customers. It's usually the most expensive thing a startup does and also the most important.
When a startup's momentum suddenly stops and it dies, usually after running out of money or investors realizing the idea doesn't work. It's spectacular and tragic.