first-mover advantage

Definition

The theoretical benefit of being first to market, used to justify rushing out half-baked products. History suggests fast-follower advantage is more valuable, but that doesn't sound as impressive in pitch decks.

Example Usage

We have first-mover advantage in AI-powered dog walking, ignoring that MySpace also had first-mover advantage over Facebook.

Origin

Business strategy terminology from competitive analysis frameworks

Fun Fact

Google wasn't the first search engine, Facebook wasn't the first social network, and the iPhone wasn't the first smartphone—being first mostly just means making mistakes competitors can learn from.

Source: Business strategy and competitive analysis

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zombie round

A funding event that technically keeps a struggling startup alive but doesn't provide enough capital or momentum to actually succeed. Life support masquerading as investment.

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vested

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fully diluted

A calculation of ownership percentages that includes all possible shares—options, warrants, convertible notes, and that napkin the founder signed in 2009. The number that reveals how little of the company you actually own.

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captive VC

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