Startup Glossary

Churn Prediction is the process of identifying customers who are likely to cancel a subscription to a service. It`s vital for startups to minimize customer loss and maximize retention strategies.

Churn Rate is a business metric that calculates the number of customers who leave a product over a given period of time, divided by the remaining number of customers.

Class A Shares refer to a classification of common or preferred shares that typically carry specific privileges, such as more voting rights.

Clean Term Sheet is a term sheet with straightforward, uncomplicated terms that all parties can agree on, often with fewer clauses that could potentially delay negotiations.

Client Acquisition is the process of bringing new clients or customers to a business through various marketing and outreach strategies.

Cliff Vesting is a term used in stock compensation that refers to the practice of vesting employee stock options all at once after a certain period of service.

Co-founder Agreement is a legal document that outlines the relationship among founders, including their roles, ownership, and what happens if someone leaves.

Co-Investment is a situation where two or more investment entities join together to invest in a particular project.

Collaborative Funding is a method where multiple entities come together to fund a project or venture, pooling resources for mutual benefit.

Collateral is an asset that a borrower offers to a lender to secure a loan.

Competitive Advantage is a condition or circumstance that puts a company in a favorable or superior business position.

Competitive Analysis is an assessment of the strengths and weaknesses of current and potential competitors, providing both an offensive and defensive strategic context.

Conversion Rate in the context of startups refers to the percentage of users who take a desired action, pivotal for evaluating the effectiveness of marketing strategies and product offerings.

Convertible Equity is an investment vehicle often used in seed rounds where the investment converts into equity at a later financing round.

Convertible Note is a short-term debt that converts into equity, typically in conjunction with a future financing round.

Convertible Note Cap is a provision in a convertible note that sets a maximum valuation at which the note will convert into equity, protecting investors from dilution in subsequent financing rounds.

Core Competencies are the main strengths or strategic advantages of a business, the combination of pooled knowledge and technical capacities that allow a business to be competitive in the marketplace.

Corporate Venture Capital (CVC) is a subsidiary of a large corporation which makes venture capital investments.

Covenant in finance terms is an agreement or promise to do or not to do something, often included in lending agreements specifying conditions the borrower must adhere to.

Cross-Promotion is a marketing technique where two or more companies promote each other`s products or services, aiming to leverage their respective customer bases.