B2C

Definition

Business-to-consumer sales model where your customer is an individual who will never read your terms of service and might churn after one bad experience.

Example Usage

Our B2C app had incredible viral growth until we realized our 25% monthly churn rate meant we were basically acquiring users to watch them leave.

Origin

Business terminology; shorthand for 'business to consumer'

Fun Fact

B2C startups have hockey-stick growth charts and devastating churn rates in equal measure

Source: Business and startup terminology

Related Terms

Beginner

Raising Money

The process of convincing strangers to give you money based on PowerPoint slides and promises of future glory. It typically consumes 50% of a CEO's time and results in 30% dilution per round.

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Advanced

drag-along rights

A contractual provision that lets majority shareholders force minority investors to join in selling the company, whether they like it or not. Democracy dies in cap tables.

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nursery

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.

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Advanced

Anti-dilution

Investor insurance that says 'your loss is our gain' in math form. When a down round happens, this clause adjusts the math.

🚀 Startup / VC

Advanced

DPI

Distributed to Paid-In Capital—the ratio showing how much cash a VC fund has returned to investors relative to what was invested, the only metric VCs care about more than founders' happiness.

🚀 Startup / VC

Intermediate

money vision

That entrepreneurial superpower where you see profit potential in literally everything, from spare time to random objects. It's viewing the entire world through a lens of 'how can I monetize this?'

🚀 Startup / VC

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