Entrepreneurship is as much about the language of risk and scale as it is about the actual product. Understanding these

Entrepreneurship

Starting and growing a company using only personal savings and initial revenue without seeking external investment.

Private equity financing provided by firms to startups that have high growth potential in exchange for an equity stake.

A wealthy individual who provides capital for a business start-up, usually in exchange for convertible debt or ownership equity.

The rate at which a new company spends its venture capital to finance overhead before generating positive cash flow.

The amount of time a company has before it runs out of money, calculated by dividing current cash by the monthly burn rate.

A fundamental shift in business strategy (e.g., changing the product or target market) after realizing the current model is not working.

Minimum Viable Product: A version of a new product that allows a team to collect the maximum amount of validated learning with the least effort.

The degree to which a product satisfies a strong market demand; the "holy grail" for early-stage startups.

The capacity of a business to handle a growing amount of work or sales in a capable manner and its potential to be enlarged to accommodate that growth.

Evidence that a product or service is gaining a foothold in the market, often measured by user growth, revenue, or partnerships.

A brief presentation (usually 10 to 20 slides) used to provide an audience with an overview of a business plan and vision.

The analytical process of determining the current (or projected) worth of an asset or a company.

Ownership interest in a corporation in the form of common stock or preferred stock.

A founder's strategic plan to sell their ownership in a company to investors or another company (e.g., through an IPO or acquisition).

A private startup company valued at over 1 billion dollars.

A methodology for developing businesses and products that aims to shorten product development cycles and rapidly discover if a business model is viable.

A statement that summarizes why a consumer should buy a product or use a service, identifying the specific benefit provided.

Customer Acquisition Cost: The total cost of sales and marketing efforts that are needed to acquire a new customer.

Lifetime Value: A prediction of the net profit attributed to the entire future relationship with a customer.

An organization designed to help startup companies grow by providing workspace, seed funding, mentoring, and training.

A fixed-term, cohort-based program that includes mentorship and educational components and culminates in a public pitch event (demo day).

An innovation that creates a new market and value network, eventually disrupting an existing market and displacing established firms.

Business-to-Business: A business model where a company sells its products or services to other businesses rather than individual consumers.

Business-to-Consumer: A business model where a company sells its products or services directly to individual consumers.

The annual percentage rate at which customers stop subscribing to a service or employees leave a job.