Top 15 Startup Terms Every Entrepreneur Must Know

 

 Therefore, you need to speak their language too, it is also called startup lingo. 

 

It is always recommended to know the terms that are being used by startup professionals. These are called jargon, meaning words or terms by professionals or groups of a particular industry that are difficult to understand for others. Here we have curated a list of startup jargon that every entrepreneur must know.

1. Wantrepreneur: A person who has lots of ideas for business, but has no idea how to implement them is known as Wantrepreneur. No matter which industry they belong to, tech or non-tech, you will always listen to a new idea whenever they will be around you. In short, a person with lots of ideas.

2. Accelerator: An accelerator is a space where businesses are "incubated" using resources including space, mentorship, and occasionally funding. If you're starting a business, accelerators can help you get your concept off the ground quickly by providing mentorship and financing possibilities over the course of a few months.

3. Incubators: In contrast to accelerators, incubators often provide more comprehensive advice programmes that support you with networking, mentorship, and resources like a coworking space. While incubators often handle earlier-stage firms and assist them in overcoming early-stage obstacles, accelerators are focused on speed and finance.

4. Bootstrapping: Almost 90% of new businesses are self-funded. In fact, given how difficult it is to secure finance these days, I believe that almost all firms are founded with their own cash. Bootstrappers are business owners who create and expand a venture without seeking money by combining human capital (knowledge, experience, and skills) with savings. An entrepreneur may also bootstrap the first phases before raising money for expansion. 

5. Pivot: Sometimes, despite our assurance that the idea is great, we quickly come to regret it. When a significant change is made to the company model, such as how you earn money, your target audience, or the solution (product), you are pivoting. Entrepreneurs must be open to changes and pivots, even if they have spent significant resources perfecting the newest version. Spending excessive amounts of time and money testing concepts or iterations of a product is therefore not a sensible execution strategy. Build quickly, test, and then make adjustments. This is why the startup adage "fail fast" is so widespread.

6. Value proposition: The term refers to your product or service's most unique or appealing feature. It's an explanation of why clients should select or pay for your product or service. Business is about providing a better or more advantageous solution than the competitors to a customer's problem. The single biggest startup error a founder can make is pouring a lot of time, money, and effort into a product that no one will ever buy.

7. Traction: The assessment of your important KPIs. Investors will assess the investment possibility based on your traction over time. You may gain traction as a startup entrepreneur even before creating a product. Before launching the initial iteration of their products, businesses like Buffer and Robinhood amassed a list of tens of thousands of potential customers.

8. Angel: Angel investors are the best people to approach if you need money for your startup business. Individual investors, family members, and friends are mainly encountered because they want to support and fund a promising business at an early stage for a possible high return.

9. VC: Most venture capitalists invest for a living, unlike angel investors. Generally, they are interested in businesses that have gained traction and can demonstrate how an investment would hasten the achievement of their objectives.

10. Seed: A seed round immediately follows an angel round, however, the order is not necessary. Companies that get a seed round often have a strong client base and a working business plan.

11. Series A, B, C: Businesses that obtain a series A round usually have achieved product/market fit and will use the cash to grow more quickly. For startups that want to expand further in order to be acquired or go public, Series B and C are available.

12. Burn Rate: It is also known as run rate, and it simply refers to how quickly you are blowing your money. Investors tend to stay away from investments with high burn rates. However, it is also common for a company to lose money for a number of years before breaking even or making a profit.

13. Pitch Deck: It is a brief presentation that emphasizes the important components of a company, such as a team, the product, the market, the traction, and the plan.

14. MVP: MVP, which stands for Minimum Viable Product, refers to a product that has just enough features to satisfy new consumers and gather input for further product development.

 

15. Unicorn: There are only a few startups that reach and exceed a billion-dollar valuation. These businesses are known as unicorns.