tooling

Definition

Shaping materials with specialized equipment, or—in startup-speak—'getting the factory ready before we realize we can't afford it.' The expensive setup phase nobody budgets correctly for.

Example Usage

The tooling costs for our manufacturing process ate 60% of our Series A funding.

Source: Common manufacturing and startup terminology

Related Terms

Intermediate

prospectus

The glossy sales document that makes every investment opportunity look like the next Amazon and every university look like Hogwarts, carefully balanced between legal obligation and marketing fantasy. In startup land, it's the formal document that transforms 'three guys in a garage with an app idea' into 'disruptive technology platform poised for exponential growth.' Every prospectus contains enough disclaimers to absolve everyone of everything while somehow still convincing you to hand over your money.

🚀 Startup / VC

Intermediate

Syndicates

Groups of angel investors or VCs pooling resources to make a larger investment than they could individually, because apparently teamwork makes the dream work.

🚀 Startup / VC

Beginner

Unicorn

A startup valued at over one billion dollars, named after a mythical creature because the valuation is equally imaginary. For every unicorn, there are ten thousand startups that are just regular horses with traffic cones taped to their heads.

🚀 Startup / VC

Intermediate

pay-back period

The time required for an investment fund to return its original capital to LPs through exits and distributions. It's the VC equivalent of asking 'when do I get my money back?'

🚀 Startup / VC

Intermediate

vest

In startup culture, to gradually earn ownership rights to company equity over time (usually 4 years), ensuring employees don't just grab the cash and run.

🚀 Startup / VC

Intermediate

Ramen Profitability

When a startup's revenue covers basic operating expenses (ramen-level salaries), allowing it to survive without external funding.

🚀 Startup / VC

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