Startup Glossary

Fixed Asset is a long-term tangible piece of property or equipment that a firm owns and uses in its operations to generate income.

Family and Friends Round is an early stage of financing where entrepreneurs raise capital from personal connections, often to fund initial development before seeking external investors.

Feasibility Study is an analysis and evaluation of a proposed project to determine if it is technically feasible, financially viable, and legally permissible.

Feedback Loop is a system used to gather and integrate feedback from users or customers to improve products, services, or operational strategies, critical for iterative development in startups.

Finance Round is a phase in which a startup secures capital from financial backers to support its operations, expansion, or product development, typically categorized by stages such as Seed or Series A.

Financial Due Diligence is an in-depth examination of a company`s financial records by potential investors or buyers to assess its valuation and the veracity of its financial information.

Financial Forecasting involves the process of estimating or predicting a startup`s future financial performance, based on historical data, market analysis, and growth projections

Financial Health is a measure of a company’s financial stability, typically assessed through various indicators such as liquidity, solvency, profitability, and operational efficiency.

Financial Independence is the status of having enough income to pay for one`s living expenses without being employed or dependent on others.

Financial Leverage is the use of borrowed money (debt) to finance the purchase of assets with the expectation that the income or capital gain will exceed the cost of borrowing.

Financial Metrics are standardized measurements used to evaluate a company`s financial health, including EBITDA, cash flow, and profitability ratios.

Financial Model is a tool designed to represent a startup`s expected financial performance and position, based on assumptions about the future.

Financing Round is the process through which a startup raises capital from investors or lenders in exchange for equity or debt, to fund operations, growth, or expansion projects.

First-Mover Advantage is the competitive advantage gained by the initial significant occupant of a market segment.

Fixed Asset Turnover is a financial ratio that measures a company’s efficiency in generating sales from its fixed assets, indicating how well the business uses its investment in physical assets.

Flash Funding refers to quick or sudden financial injections into a startup, often to capitalize on immediate opportunities or address urgent needs.

Flash Sale is a marketing and sales strategy involving the offering of goods or services at significantly reduced prices for a short period of time.

Flipping in the startup context refers to the act of buying undervalued assets or companies and quickly selling them for a profit.

Follow-on Funding is additional investment made in a company following initial capital infusions, to support further growth, development, or to bridge the company to profitability.

Follow-on Investment refers to additional funding provided by investors who have previously invested in the company, typically to support continued growth.