Startup Glossary

A/B Testing is a method used by startups to compare two versions of a webpage or app against each other to determine which one performs better, often used to optimize product offerings or marketing strategies.

Accelerated Dilution is a situation where the ownership percentage of existing shareholders decreases faster than anticipated, often due to the issuance of new shares in funding rounds.

Accelerated Growth is the rapid expansion of a startup`s market share, revenue, or user base, typically resulting from effective product development, market strategy, or capital infusion.

Accelerated Vesting is a provision in an employee`s stock option or equity plan that allows the employee to gain access to their equity or stock options more quickly than the original schedule, often triggered by specific events such as a sale of the company.

Accelerator is a program that offers startups mentorship, resources, and often capital, in exchange for equity, designed to help startups grow rapidly.

Accelerator Cohort is a group of startups participating in an accelerator program simultaneously, benefiting from shared learning experiences, mentorship, and networking opportunities.

Accelerator Demo Day is an event at the end of an accelerator program where startups present their business to potential investors, aiming to secure funding and partnerships.

Access to Capital is the startup`s ability to secure funds from external sources, including angel investors, venture capital firms, banks, and crowdfunding platforms, to finance its operations, growth, and expansion plans.

Accession Agreement is an agreement that outlines the terms under which a new partner or member joins an existing partnership or company, including any contributions to capital and adjustments to existing ownership structures.

Accreditation is the process by which a business or individual is certified to have met a set of industry or regulatory standards, often referring to accredited investor status in the context of investors.

Accredited Crowdfunding Platform is an online platform that allows accredited investors to invest in startups and small businesses, subject to regulatory compliance and investor qualification standards.

Accredited Investor is an individual or business entity allowed to deal in securities not registered with financial authorities, recognized based on net worth, income, assets, or professional experience.

Acquisition is the process of acquiring control of another company by purchase or stock exchange.

Acquisition Financing is funds that are specifically raised for the purpose of financing the acquisition of another company, asset, or key resource.

Actionable Metrics are key data points that provide insights which can be acted upon to improve a startup`s business model, product development, or market strategy.

Active Funding Round is a current phase in which a startup is actively seeking and securing funds from investors, engaging in pitching, negotiations, and the execution of funding agreements.

Active Investor is an investor who takes an active role in the management and decision-making processes of a startup, often in exchange for capital investment, contrasting with passive investors who do not involve themselves in management.

Adaptive Pricing is a pricing strategy that adjusts based on market demand, competition, or customer profile, often used by startups to maximize revenue or market penetration.

Add-on Acquisition is an acquisition strategy where a company purchases smaller companies to add to its existing operations, enhancing its product offerings or expanding its market reach.

Adverse Selection is a situation where sellers have information that buyers do not have, or vice versa, about some aspect of product quality. In the context of startups, it can refer to the challenge of attracting the right investors without revealing too much strategic information.