Ramen Profitable - A company that is profitable enough to cover expenses of all the employees’ basic living requirements.
Recapitalization - A corporate reorganization of capital structure by changing the mix of equity and debt.
Recurring Revenue - A measurement of revenue streams that are recurring. This excludes one-time fees and professional service fees.
Referral Marketing - The spreading of information about a product via existing customers. This process is often incentivized by companies.
Registered Users - The number of users registered for a product or service.
Release - A functional product sent to customers.
Repositioning - Marketing strategy to re-shape a product’s purpose or image in a customer’s mind.
Request for Proposal (RFP) - A form of bidding solicitation wherein a company announces the availability of funding for a particular project. This allows other companies to bid upon who will fund this project.
Requirements - Descriptions of the qualities, traits, abilities and specifications that a product ought to possess.
Response Bias - A set of biases that can undermine self-reported and survey data.
Responsive Design - A website design strategy focused on usability across all access platforms and interfaces.
Retargeting - A form of marketing in which users who have previously expressed interest in a given product are presented with banner ads about that product on various other web pages.
Retention Rate - A metric derived by analyzing the number of customers at the start of a period, the number of customers at the end of a period, and all customers gained during the course of that period.
Return on Investment (ROI) - A metric to gauge company performance versus amount of money invested. It is calculated by dividing net profit by the cost of the investment, and is often expressed as a percentage.
Revenue - The amount of money generated.
Risk Tolerance - The amount of risk that an investor is willing to accept.
Roadmap - A strategic plan to create a product or complete a project. A roadmap describes the individual steps required to meet a set of goals or objectives
Run Rate - Annual recurring revenue without factoring in churn.
S Corporation - A special type of corporation allowing the protection of limited liability, but also enabling direct flow-through of profits and losses.
Sales Cycle Time - The average number of days that a potential customer sits in the sales funnel.
Sales Draft - Often used in the discussion of sales involving credit cards, a sales draft is a summary document indicating that a cardholder has made a purchase.
Sales Funnel Leakage - A term for the amount of potential customers who are eliminated from the sales funnel at different stages.
Sales Mix - A term used by company who sell multiple products to gauge the relative amount of sales for each given product type.
Sales Mix Variance - The difference between actual purchased quantity per customer and expected sales quantities.
Sales per Share - A ratio comparing total sales over a given period to the value of an individual share of the company.
Sales Pipeline - The steps a salesperson takes from original contact with a customer to the closing of a sale
Sales to Cash Flow Ratio - A ratio comparing a company’s sales of a particular product to its overall cash flow.
Sandbox - An environment or location where experimentation is acceptable, without consequences for failure.
Scalability - The potential for a product or service to be expanded.
Scaleable - A company that can maintain or improve profit margins while sales volume increases.
Scheduled Vesting - The schedule by which an employee is granted access to equity.
Scope - The boundaries of a given project.
Scrum - An iterative product development method, often introduced to manage software development projects. In scrum-based projects, the team is self-directed with no specified project manager and a high level of communication is maintained between team members.
Search Engine Marketing (SEM) - Marketing method that focuses on purchasing ads that are prominently featured on search engine results pages.
Search Engine Optimization (SEO) - The process of attracting attention to a product or company by increasing visibility on search engines
Secondary Public Offering - When a company presents stock for sale to the public after an IPO.
Secondary Purchase - The act of purchasing stock from a shareholder rather than from the company itself.
Secret Sauce - The factor which gives a company or product a unique competitive advantage.
Securities - All types of equity or debt.
Seed Round - The first round of financing for a startup. Usually funds raised in the seed round are intended to be spent on producing a prototype or proof of concept.
Seed Stage - The stage of a startup where profitability is extremely unlikely and seed funds are required to gain customer insights.
Series A - The first major round of venture capital funding wherein preferred stock is issued.
Series B/C/D/E - Later rounds where preferred stock is issued.
Serviceable Available Market (SAM) - Possible market targeted by a product within geographic or logistical reach.
Session Length - The amount of time individuals spend on a given site.
Share Consent - A legal clause requiring an investor’s consent in order for a business to sell shares at a later date.
Sitcom Startup Idea - A forced startup idea born of desire to create something rather than to solve a real problem.
Sitemap - An XML file listing all URLs for a website, allowing search engines to more easily determine useful keywords.
Social Entrepreneur - A person who notices a social problem and attempts to bring about social change as a solution.
Social Media Monitoring - The process of using social media channels to gauge attitudes and collect information on the public’s perception of a company.
Soft Sell - dvertising and sales with subtle language and suggestion
Software as a Service (SaaS) - Technological service that is virtually hosted.
Specifications - The exact customer needs that must be satisfied by a product in order for that product to be considered a success.
Sprint - A set time period during which milestones must be reached and work must be completed and ready for review.
Stakeholder - A person or group of people who have an interest or concern with a company.
Startup - A company in an early stage of development.
Statutory Voting - A voting method for a Board of Directors in which a board member receives 1 vote for each share they own.
Stealth Mode - A startup in a phase of secrecy.
Steps to Revenue - A revenue roadmap detailing the exact steps a company must take in order to begin generating revenue.
Stickiness - User retention rate.
Stock Options - The right to sell or purchase stock for a set price during a pre-defined period of time.
Stockholder - Individuals or entities who own stock in a corporation.
Story Point - A measurement used by scrum teams to determine how much effort is required to achieve a goal.
Strategic Investors - Investors who add value to their investments via industry ties or experience.
Subdomain Name - A second website with unique content but residing under the Primary Domain Name.
Subscription Model - Payment model requiring a monthly or yearly charge in order to fully utilize a product.
Sweat Equity - Shares in a company given in exchange for completed work.
SWOT - An analysis of a team’s strengths, weaknesses, opportunities, and threats.
Syndication - The venture capital practice of each individual investor contributing a small portion of money required to fund a company.
Synthesis - Combining different elements to make a united whole.
Tag-Along Rights - Agreed stipulation stating that if a founder decides to sell their shares to a buyer, an existing investor can offer their shares to the buyer for the same amount.
Target Market Profile - The set of attributes possessed by a target population intended to be buyers of a product.
Technical Requirements - A set of technical properties that a product must fulfill.
Tentpole - A project whose success uplifts other similar projects.
Term Sheet - A non-binding agree designed to provide a layout of the basic terms and conditions of an investment. Term sheets are often used as templates for later legal documents.
The One Metric That Matters (OMTM) - A focused, single-metric approach to measure success.
Total Available Market (TAM) - All existing market demand for a product.
Tractability - A measurement of how hard it will be to launch a functional version 1.0.
Traction - Proof that people are buying and using a product.
Trade Secret - Protected information within a company that derives independent economic value from its exclusivity.
Trend Naming - Analyzing on-going social trends before choosing a name for a new startup
Uncapped Notes - A funding practice designed to protect founders. Uncapped notes provide no guarantee that investors will be granted a specific amount of equity per dollar invested.
Underwriter - An investment bank with a contractual obligation to take any securities into their own books if the company in which they are vested has failed.
Unicorn - A tech company with a value higher than $1bn.
Uniform Commercial Code (UCC) - Uniform Commercial Code (UCC)
Unique Value Proposition (UVP) - A clear statement that describes the benefit of a product and how a product solves customer needs.
Unit Economics - Direct revenue and costs associated with a certain business model expressed on a per unit basis.
Unqualified Prospects - A potential client who has not been previously vetted.
User Acquisition - The transition of an individual into a user of a product or service.
User Experience - The overall experience of an individual using a given product, often discussed in terms of the easiness or difficulties with this experience.
Valuation - The process of determining a company’s value.
Valuation - The process by which a company’s value is determined.
Value Proposition - Quantifiable benefits of a product.
Vanity Metrics - Metrics that bolster a company’s self-confidence with few actionable implications.
Vaporware - A product that is advertized as being sold while still in prototype or pre-prototype phase. This tactic is often used to gauge interest in a hypothetical product.
Variable Costs - The opposite of fixed costs, variable costs fluctuate depending on what a company is producing. Therefore, variable costs are difficult to predict.q
Vendor - A supplier required to create a product.
Venture - An endeavor involving a degree of risk and reward.
Venture Capitalist - An individual investor who works at a venture capital firm and makes investment decisions.
Version Control - The task of organizing a system or product containing many versions.
Vertical Search Engine - Search engines that use a focused crawlers, only focusing on relevant web pages by limiting the amount of topics on resulting web pages.
Vesting - The act of a company granting stock options to an employee.
Viral Coefficient - A measure of virality designed to gauge how often users of a product introduce that product to others.
Viral Cycle Time - The amount of time required for a customer to see a product, use it, and invite others to try it.
Viral Loop - An incentive-based system where users are rewarded for sharing a product with others.
Viral Marketing - A marketing technique that encourages users to pass on marketing information, creating exponential growth.
Voting Right - A stockholder's right to vote on matters of corporate management.
Wantrapreneur - Someone who wants to be an entrepreneur or enjoys the status of calling themself an entrepreneur, but lacks the direction, determination, or work ethic required to actually execute and build an impactful business.
Warrant - The right to buy or sell a given security at a certain price during a specified period.
Waste - Human activity that brings no value.
Waterfall Methodology - A product life cycle strategy including Analysis, Design, Development, Testing, and Deployment phases.
Website Pageviews - The accessing of a page by a visitor or user.
Weekly Active Users (WAU) - The amount of users of a service or product in a seven day period.
Well - A narrow startup that aims to do one thing very effectively and caters to a specific audience.
White Label - A product or service produced by a single company that another company chooses to rebrand for their own use or distribution.
Wicked Problem - A problem that is difficult to solve because of constantly changing criterion or problem sources.
Wideness - An estimation of how many people will eventually use a product.
Widget - A small application that provides information in a customizable manner.
Wireframe - A representation of the virtual framework of a website. Wireframes allow people to easily arrange elements to optimize ease of use.
Wizard of Oz Minimum Viable Product (WoOMVP) - A version of a product that looks functional, but it actually operated by a human behind the scenes, granting the appearance of automation.
Yak Shaving - A seemingly pointless task that must be completed in order to progress.
Zone of Insolvency - The state in which a company is very close to being insolvent with insufficient money or assets to pay off its liabilities.