Startup Glossary

B2B (Business to Business) refers to companies that sell products or services directly to other businesses rather than individual consumers.

B2B Sales Cycle is the process that a business-to-business sale typically goes through, from initial contact to closing the deal, which can impact fundraising by affecting cash flow and revenue forecasts.

B2B2C (Business to Business to Consumer) is a business model where a company sells its product or service to another business before it reaches the consumer.

B2C (Business to Consumer) describes companies that sell products or services directly to individual consumers.

Backdoor Financing is a method of raising capital through means that are not traditional equity or debt offerings, such as joint ventures, strategic partnerships, or through the use of convertible notes.

Balloon Payment is a large, lump-sum payment scheduled at the end of a series of considerably smaller periodic payments, a term relevant in structured financing agreements.

Barefoot Valuation is an informal method of valuing a startup based on minimal available financial data, often used in early stages or by companies with little to no revenue.

Barrier to Entry refers to obstacles that make it difficult for new entrants to enter a market or industry, such as high startup costs, regulatory requirements, or strong incumbent brands.

Basis Point is a unit of measure used in finance to describe the percentage change in the value or rate of a financial instrument, equal to 1/100th of 1%.

Bear Hug is an offer to purchase a company`s shares at a price far higher than the current market value, making it difficult for the company to refuse but not necessarily in its best interest.

Benchmark Round is a significant funding round that sets a valuation benchmark for a startup, often used as a reference for future funding rounds and valuations.

Benchmarking is the process of comparing a startup`s business processes and performance metrics to industry bests and best practices from other companies, aiming to identify areas for improvement.

Beta Test is the second phase of software testing where a sample of the intended audience tries the product out in a real-world environment to identify bugs or improvements.

Beta Users are individuals or businesses that use a startup`s product or service before its full commercial release to provide feedback and identify any issues.

Beta Version is a pre-release version of a product, typically software, that is made available to a limited audience outside of the company to find bugs or gather feedback.

Big Data Analytics involves examining large and varied data sets to uncover hidden patterns, market trends, customer preferences, and other insights that can help startups make informed decisions.

Block Chain in fundraising refers to a digital ledger technology used for securing decentralized transaction records, notably in cryptocurrency transactions.

Board of Directors is a group of individuals elected to represent shareholders and govern the company`s activities according to its charter.

Bootstrapped Startup is a company that is funded by the founders` personal finances or the operational revenues of the company, without external investment capital.

Bootstrapping is a funding strategy where entrepreneurs use their own money, or the business`s revenue, to finance their startup, avoiding external investment or debt.