Pivoting

Definition

When a startup realizes their original idea won't work and dramatically changes direction—either genius adaptation or admitting failure dressed up as strategy.

Example Usage

The dating app pivoted to focus on professional networking instead.

Source: Startup industry terminology

Related Terms

Intermediate

founder-market fit

The degree to which a founder's background, skills, and experience uniquely position them to solve a particular problem. The startup equivalent of being born for this moment, or at least having a plausible narrative for why you were.

🚀 Startup / VC

Intermediate

Pivot to Mobile

The startup maneuver of jumping into mobile app development because 'that's where all the users are,' often destroying a working web product in the process.

🚀 Startup / VC

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.

🚀 Startup / VC

Intermediate

first-mover advantage

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.

🚀 Startup / VC

Intermediate

TAM

Total Addressable Market -- the theoretical maximum revenue if you sold your product to every possible customer on Earth, including people who don't want it, can't afford it, and live in places without internet. It's the biggest number in every pitch deck and the most fictional.

🚀 Startup / VC

Intermediate

post-money valuation

Company valuation after investment capital is added, the number founders brag about while carefully omitting the 'post-money' qualifier. What your company is theoretically worth with someone else's money included.

🚀 Startup / VC

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