VC-Backed

Definition

A company that has received venture capital funding. It's a stamp of credibility that makes customers pay attention and employees believe in equity compensation.

Example Usage

We're a VC-backed startup in the productivity space with $10M in funding, which sounds more impressive than we probably are.

Origin

Venture Capital terminology, standard descriptor since the 1980s

Fun Fact

Being VC-backed changes how the market perceives you despite having zero relationship with actual quality or potential

Source: Startup industry standard terminology

Related Terms

Intermediate

lean

In startup and manufacturing contexts, the obsessive drive to eliminate waste and optimize every process—think 'Lean Six Sigma' meets 'we're cutting everything including job security.' It's less about tilting and more about squeezing every ounce of efficiency out of your operation.

🚀 Startup / VC

Intermediate

SAM

Serviceable Addressable Market—the portion of TAM you can realistically reach with your business model and resources; basically TAM divided by reality.

🚀 Startup / VC

Advanced

portfolio construction

The strategy for how a fund allocates capital across different investments, stages, sectors, and check sizes. The art of arranging your bets so at least one or two have to work out mathematically.

🚀 Startup / VC

Intermediate

pioneering

Being the first to boldly venture into uncharted territory—whether that's a new market, technology, or increasingly, a niche on TikTok. The marketing term for 'we did it before it was cool.'

🚀 Startup / VC

Intermediate

Down and Out

A down round combined with the departure of key executives or massive losses—essentially the startup equivalent of hitting rock bottom while the bank forecloses.

🚀 Startup / VC

Advanced

Default alive

A company that will reach profitability with its current cash and revenue trajectory, without needing to raise more money. Paul Graham made the question popular, and it is a useful check against the comfort of an optimistic forecast.

🚀 Startup / VC

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Intermediate

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