Startup Glossary

Return on Customer Acquisition Cost (ROCAC) measures the profitability and value generated from customers acquired through marketing efforts, comparing revenue to the cost of acquisition.

Return on Equity (ROE) measures a corporation`s profitability by revealing how much profit a company generates with the money shareholders have invested.

Return on Innovation Investment (ROII) quantifies the financial gains or losses generated by investments in innovation activities relative to the costs of those activities.

Return on Investment (ROI) measures the gain or loss generated on an investment relative to the amount of money invested, indicating the efficiency of the investment.

Return on Sales (ROS) is a ratio used to evaluate a company`s operational efficiency, calculated as net income divided by total sales, indicating how much profit is generated from sales.

Revenue Acceleration refers to strategies and actions taken to increase the rate of revenue growth, often through sales and marketing optimization.

Revenue Concentration measures the degree to which a company`s revenue is derived from a limited number of customers or products, indicating potential risk exposure.

Revenue Cycle Management is the process of handling the financial transactions from customers, including billing, collections, and revenue recognition, to optimize a company`s revenue flow.

Revenue Diversification is a strategy to increase income sources through new products, services, or markets, reducing dependence on a single revenue stream.

Revenue Growth Rate measures the increase in a company`s sales from one period to the next, indicating the pace at which the company is expanding its business operations.

A Revenue Model describes the framework for generating financial income. It identifies which revenue source to pursue, what value to offer, how to price the value, and who pays for the value.

Revenue Per Available Seat Mile (RASM) is a metric used primarily in the airline industry to assess how efficiently a company generates revenue from its available seat capacity.

Revenue Per User (RPU) is a metric that calculates the average revenue generated per user or customer, used to assess a company`s financial performance and business model efficiency.

Revenue Run Rate projects future revenue over a period, based on current financial data, to estimate annual earnings.

Revenue Sharing is a financial arrangement where revenue generated by a business is shared with partners or stakeholders, often used in collaborative business models.

A Reverse Merger is a strategy where a private company becomes public through a merger with a dormant or shell public company, bypassing the traditional IPO process.

Reverse Vesting is a mechanism where a company has the right to buy back shares from an employee or founder at a nominal price if the individual leaves the company before a set period.

A Rights Issue is a corporate action to raise equity capital, where existing shareholders are given the right to subscribe to new shares at a discount before they are offered to the public.

Rights Issue Premium refers to the additional amount that shareholders are required to pay to exercise their rights in a rights issue, over the par value of the shares.

Rights of First Refusal (ROFR) is a contractual right that gives its holder the opportunity to enter a business transaction with a company before the company can transact with others.