Startup Glossary

Hacker Culture is a community and mindset valuing creative problem solving, open exchange of ideas, and the free modification of software to improve performance, often associated with tech startups and innovation.

Hacking Growth is a process focused on rapid experimentation across marketing channels and product development to identify the most effective, efficient ways to grow a business. It leverages data, technology, and innovative marketing

Hands-on Investor is an investor who takes an active role in the management and decision-making processes of a startup, providing not just capital but also expertise, mentorship, and access to networks.

Hands-On Management is an active approach to management where leaders are directly involved in the operations and decision-making processes of the startup, often necessary in early stages and during periods of significant change.

Handshake Agreement are informal agreements based on mutual trust between parties, without written contracts, often used in early stages of startup partnerships or negotiations.

Hard Cap is the maximum amount of capital a startup aims to raise in a funding round, beyond which no additional investments will be accepted

Harvest Strategy is a plan for how the founders and investors of a startup intend to exit and realize their investments, such as through a sale or initial public offering (IPO)

Heterogeneous Funding is a funding approach that involves securing capital from a variety of sources, including but not limited to angel investors, venture capital, grants, and crowdfunding, to mitigate risks and leverage different networks.

Hierarchy of Investors is the order of priority among investors in terms of rights, preferences, and returns, usually established in the terms of investment agreements

High Net Worth Individual (HNWI) is an individual with significant personal financial assets, with many angel investors falling into this category, providing startups with capital in exchange for equity.

High-Growth Ventures are startups with the potential and ambition to grow significantly in terms of revenue, market share, or employee numbers, often attracting venture capital investment

Hiring Automation is the use of software to automate aspects of the recruitment process, such as screening resumes and scheduling interviews, helping startups to efficiently scale their teams.

Hiring Incentives are financial or other benefits offered to attract and retain key employees in a startup, such as stock options, bonuses, and flexible working conditions

Hiring Plan is a strategic plan outlining a startup`s staffing needs over a specific period, including roles, numbers of positions, and timelines for recruitment, crucial for scaling operations and managing growth effectively.

Hockey Stick Growth is a pattern of growth where a startup experiences a period of stagnation followed by a sudden and extremely rapid growth, depicted graphically as a line that suddenly turns upwards like a hockey stick

Hockey Stick Projection are financial projections that show slow growth initially, followed by a rapid increase in revenue, often used by startups during fundraising to illustrate potential growth to investors.

Hold Period is the duration an investor expects to retain an investment in a startup before exiting, typically through a sale, IPO, or acquisition, reflecting the investment`s expected time to maturity.

Holding Company is a type of company created to buy and own the shares of other companies, which it then controls, used by startups for various strategic reasons, including managing risk and investment diversification.

Holding Period is the amount of time an investment is held by an investor or firm, crucial for venture capital and angel investors for determining the timing of exits and realization of returns.

Holistic Marketing is a marketing strategy that considers the business as a whole, the interdependencies of its various departments, and its impact on society, aiming to create a unified and integrated marketing message.