Startup Lingo 101
Breaking into the startup world can feel like learning a new language. From pre-seed funding to unicorns (and no, not the mythical kind), startup jargon is everywhere. If you are looking to land a role at a startup, understanding the lingo is key to keeping up in conversations and interviews.
Let’s dive into Startup Lingo 101 and decode some of the most commonly used terms.
💰 Startup Funding Terms
🔹 Bootstrapping – Building a company with zero outside funding, relying on personal savings or revenue.
🔹 Pre-Seed & Seed Round – The earliest stages of funding:
Pre-Seed: The first capital a startup raises, usually from friends, family, or angel investors. Funding is used to build an MVP and validate the idea.
Seed Round: Early-stage funding from venture capital firms, angel investors, or accelerators (e.g., Y Combinator).
🔹 Series A, B, C Rounds – Growth funding rounds from venture capital firms:
Series A – Focuses on scaling and achieving product-market fit. Startups invest in hiring, marketing, and expanding operations.
Series B – Fuels rapid expansion (more employees, bigger markets). Investors expect solid revenue growth and a clear business model.
Series C+ – For market dominance—acquisitions, international expansion, and potential IPO preparation.
🔹 Runway – The amount of time a startup can survive before running out of money, based on cash reserves and expenses.
🔹 Burn Rate – The rate at which a startup is spending capital each month. High burn rate = fast growth OR fast failure.
🔹 SAFE (Simple Agreement for Future Equity) – A flexible investment contract where investors give money now in exchange for future equity, commonly used in early-stage startup funding.
🔹 Term Sheet – A document outlining the basic terms of an investment deal. It is not legally binding but sets expectations for both investors and founders.
📈 Growth & Business Metrics
🔹 MVP (Minimum Viable Product) – The simplest version of a product that allows a startup to test its concept and gather user feedback.
🔹 Product-Market Fit (PMF) – When a startup’s product perfectly matches customer demand, leading to fast growth.
🔹 CAC (Customer Acquisition Cost) – How much a company spends to acquire a single paying customer.
🔹 LTV (Lifetime Value) – The total revenue a company expects to generate from a customer over their lifetime.
🔹 Churn Rate – The percentage of customers who stop using a service over a given period. High churn = red flag.
🔹 North Star Metric – The one key metric that drives a startup’s success (e.g., for Uber, it is "rides per day"; for Airbnb, it is "nights booked").
🏢 Startup Culture & Roles
🔹 Founder vs. CEO – A Founder starts the company, while a CEO runs it. Sometimes, they are the same person—sometimes not.
🔹 Early Employee – A team member who joins in the first 10-20 hires and often wears multiple hats.
🔹 Equity Compensation – Instead of a high salary, early employees are often given company stock (options or shares), betting on future growth.
🔹 Fail Fast – The startup mindset that encourages rapid testing, quick failures, and fast learning.
🔹 GTM (Go-To-Market Strategy) – A startup’s plan for how to launch and sell its product to customers.
🔥 Startup Slang You’ll Hear Daily
🔹 Unicorn – A privately held startup valued at $1 billion+ (Think: Stripe, Canva, SpaceX).
🔹 Pivot – When a startup changes its business model or strategy based on market feedback.
🔹 Hockey Stick Growth – A revenue or user growth curve that skyrockets exponentially.
🔹 Stealth Mode – A startup working on its product in secret before a public launch.
🔹 Scrappy – A startup (or person) that is resourceful, adaptable, and hustles to get things done.
📚 Additional Resources to Dive Deeper
🔗 [Startup Lingo (from A to Z)]
🔗 [Understanding the Startup Ecosystem]
