Startup Glossary

Follower Funding is a concept where startups receive funding not just from traditional investors but also from their customers or users, often through platforms like Kickstarter.

FOMO Marketing, leveraging the `Fear Of Missing Out,` is a strategy to evoke anxiety that an exciting or interesting event may currently be happening elsewhere, often used to prompt immediate action.

Founder Vesting is the process by which a founder earns their equity over time, protecting the company’s long-term interests by encouraging founders to remain committed.

Founder’s Agreement is a legal document outlining the roles, responsibilities, equity ownership, and other terms agreed upon by the founders of a startup.

Founder`s Equity refers to the ownership interest allocated to the founders of a startup, typically represented in shares.

Founders` Stock are the original shares issued to the creators of the company, often subject to vesting conditions to ensure founders remain committed to the business.

Founding Team refers to the group of individuals who start a company, bringing together diverse skills, expertise, and visions for the venture’s success.

Franchise is a method of business expansion where a company (franchisor) licenses its business model and brand to an independent operator (franchisee).

Franchise Fee is an initial cost paid by a franchisee to a franchisor for the rights to use the franchisor`s brand, system, and ongoing support in operating the business.

Free Cash Flow is the amount of cash a company generates after accounting for capital expenditures, reflecting the financial health and profitability of a business.

Freemium is a business model where basic services are provided free of charge while more advanced features or services are offered at a premium.

Friends and Family Round is an early stage of financing where startup founders obtain capital from personal connections to support initial business operations.

Fully Diluted Shares are the total number of shares that would be outstanding if all possible sources of conversion, such as stock options and convertible bonds, were exercised.

Fund Allocation is the strategic distribution of raised capital into various business operations, investments, or reserves to support growth and sustainability.

Fundable is a characteristic of startups that are attractive to investors due to their market potential, business model, team, or technology.

Funding Cycle is the continuous process of raising capital, utilizing it for growth, and then seeking additional funding based on new valuations.

Funding Efficiency is a measure of how effectively a startup uses the capital it raises to generate growth and achieve its objectives, indicating the startup`s potential for sustainability and success.

Funding Gap is the difference between a startup`s current level of funding and the amount it needs to reach the next stage of growth or to become self-sustaining.

Funding Platform is an online service that connects startups with potential investors, facilitating fundraising through equity, debt, rewards, or donation-based campaigns.

Funding Round is a stage during which a startup seeks financial investment from outside sources to fuel its growth and operations.