Disruptive Innovation

Definition

A technology or business model that destroys existing markets while making founders rich. Wall Street's favorite euphemism for 'we're breaking laws but we'll settle later.'

Example Usage

Uber is a disruptive innovation in the transportation industry.

Source: Clayton Christensen, business strategy

Related Terms

Advanced

full ratchet

The most aggressive anti-dilution protection where early investors' conversion price adjusts to match a down round price, regardless of how small the down round is. Financial punishment for daring to need more money.

🚀 Startup / VC

Beginner

boomerang founder

An entrepreneur who returns to start another company after their previous venture was acquired or failed. They're either gluttons for punishment or genuinely addicted to the startup lifestyle.

🚀 Startup / VC

Advanced

signaling

The information conveyed to the market by investor actions, such as who leads a round or whether insiders participate in follow-ons. In startup land, subtext is text.

🚀 Startup / VC

Intermediate

lever

A mechanical advantage device that pivots on a fulcrum to multiply force, or in startup parlance, anything you can use to do more with less. Every MBA in Silicon Valley thinks they've found a "lever" to pull, usually right before asking for $5M in seed funding. Physics teachers hate how loosely VCs use this term, but hey, at least someone's paying attention to simple machines.

🚀 Startup / VC

Intermediate

Series C and Beyond

Later-stage funding rounds (C, D, E, F, etc.) for companies approaching profitability or dramatic growth. The venture capital equivalent of 'we've lost count.'

🚀 Startup / VC

Intermediate

Acquisition (Acqui-hire)

When a company buys another startup not for its product, but primarily for its team. The startup equivalent of a zombie becoming useful.

🚀 Startup / VC

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