Entrepreneurship & Startups Vocabulary: 100 Key English Terms
Startups run on a fast, English-heavy vocabulary: founders talk about their MVP, traction and runway, while investors ask about the cap table, the valuation and the term sheet. Even in Turkey, most of these words are used in English in pitch meetings, accelerator programmes and investor emails. This glossary explains the core terms of starting, funding and growing a company in plain English and Turkish, with examples from real startup work.
100 terms
11 topics
37 core terms
200 example sentences
Read, understand, keep going
No account needed. Read the meaning, see where the term is used, then study the examples. Click any word in the lesson for help. You can also select a word and press Alt + Enter.
Ideas & Business Models
startup
noun
Meaning
A young company that aims to grow very fast by solving a problem with a new product or business model, often before it has found a way to make a profit.
Where you use it
Used everywhere in tech, investment and the media. You found, launch, join, run or fund a startup. People talk about early-stage and late-stage startups, and about fintech, health or climate startups.
Examples
I left my bank job last year to join a fintech startup with twelve people.
Most startups in our accelerator are still looking for their first paying customers.
Usage note
Startup is usually written as one word in tech writing; start-up with a hyphen is also correct. As a verb it is two words: you start up a company.
Common phrases
found a startup · join a startup · early-stage startup · tech startup · startup ecosystem
The way a company creates value for customers and earns money from it: who pays, what they pay for, how much and how often.
Where you use it
One of the first things investors ask about. You test, validate, change or explain your business model. Common types are subscription, marketplace, freemium, advertising and transaction fees. The Business Model Canvas is a popular one-page tool for describing it.
Examples
Our business model is simple: restaurants pay a monthly fee, and diners use the app for free.
The investor liked the team but wasn't convinced by the business model.
Common phrases
test a business model · subscription business model · scalable business model · Business Model Canvas
A short, clear statement of the main benefit a product gives its customers and why they should choose it over other options.
Where you use it
Used in strategy work, pitch decks, websites and sales. You define, test, sharpen or communicate your value proposition. A strong one talks about the customer's result, such as saving time or money, not only about product features.
Examples
Our value proposition is clear: small shops get their accounting done in ten minutes a week.
Visitors didn't understand the value proposition on our homepage, so we rewrote it.
Common phrases
clear value proposition · unique value proposition · test the value proposition · core value proposition
The specific group of customers a business plans to sell to first, described by features such as industry, location, size, age or needs.
Where you use it
Investors ask who exactly your target market is, and everyone is never a good answer. You define, narrow, enter or expand beyond a target market. Startups often start with a small niche and grow from there.
Examples
Our target market is independent pharmacies in mid-sized Turkish cities.
We narrowed our target market from all retailers to small fashion brands.
Common phrases
define the target market · narrow the target market · primary target market · enter a target market
A specific problem or frustration that customers have and that a product can solve. Strong startups are built around real, painful problems.
Where you use it
Used in customer interviews, product meetings and pitches. You identify, discover, address or solve a pain point. Investors like to hear about urgent pain points that customers already spend money or time on.
Examples
The biggest pain point for our users is chasing late payments from clients.
In every interview we asked about pain points, not about our solution.
Common phrases
identify pain points · solve a pain point · address a pain point · customer pain point · real pain point
The total yearly revenue a product could earn if every possible customer in its market bought it, used to show how big the opportunity is.
Where you use it
Usually called TAM and often shown with SAM (serviceable addressable market, the part you can actually serve) and SOM (serviceable obtainable market, the part you can realistically win). Investors check that the TAM is large enough and sensibly calculated, not just copied from a report.
Examples
Our total addressable market (TAM) is about 4 billion dollars a year in Europe.
The investor said the total addressable market was too small for a venture-scale return.
Common phrases
TAM, SAM and SOM · size the market · large addressable market · bottom-up TAM
Something that lets a company serve customers better or more cheaply than its rivals, such as unique technology, data, a strong brand or lower costs.
Where you use it
A standard topic in pitches and business plans. You build, gain, keep or lose a competitive advantage. Investors want to know whether it is sustainable, meaning hard for rivals to copy; a long-lasting advantage is often called a moat.
Examples
Our main competitive advantage is five years of local delivery data that no rival has.
Being cheaper is not a lasting competitive advantage if a bigger company can match the price.
Common phrases
sustainable competitive advantage · gain a competitive advantage · key competitive advantage · lose a competitive advantage
A long-lasting advantage that protects a business from competitors, like the water-filled ditch around a castle; for example network effects, patents or high switching costs.
Where you use it
A favourite word of investors: What's your moat? You build, widen or defend a moat. Common moats are network effects, proprietary data, brand, scale and switching costs. Founders should explain why their moat will get stronger over time.
Examples
Anyone can copy our app, so our moat has to be the partnerships with hospitals.
Every new seller makes the marketplace more useful for buyers, and that widens our moat.
Common phrases
build a moat · widen the moat · defensible moat · data moat
Software as a service: software that customers use online through a browser or app and pay for with a regular subscription instead of buying it once.
Where you use it
One of the most common startup models. People talk about SaaS companies, B2B SaaS, SaaS metrics (MRR, ARR, churn, net revenue retention) and vertical SaaS, meaning software for one industry. It is usually pronounced like the word sass.
Examples
We're a B2B SaaS company selling scheduling software to clinics.
Investors valued the company like a SaaS business because most of its revenue is recurring.
A business model in which the basic version of a product is free and customers pay for extra features, more usage or a premium plan.
Where you use it
Common in apps and SaaS. The word combines free and premium. Teams track how many free users convert to paid users; this rate is often low, so freemium works best when serving free users costs very little.
Examples
We use a freemium model: teams of up to five people use the tool for free.
Only 3 percent of our freemium users upgrade, so we're testing a free trial instead.
Common phrases
freemium model · free-to-paid conversion · freemium plan · upgrade to premium
A business model in which customers pay a regular fee, usually monthly or yearly, to keep using a product or service.
Where you use it
Investors like subscription models because revenue is predictable and recurring. Teams offer monthly and annual plans and focus on renewals, retention and churn. The model is used in software, media, food boxes and many other sectors.
Examples
Moving from one-off sales to a subscription model made our revenue much more stable.
With a subscription model, every customer who cancels hurts next month's numbers.
Common phrases
move to a subscription model · monthly subscription · annual plan · subscription revenue
A platform that connects buyers and sellers, or customers and service providers, and usually earns money by taking a fee or commission on each transaction.
Where you use it
Examples include platforms for rides, holiday rentals, freelancers and second-hand goods. Founders talk about the two sides of a marketplace, supply and demand, and the chicken-and-egg problem of attracting both at the start. The share the platform keeps is called the take rate.
Examples
Our marketplace connects local farmers with restaurants and takes a 10 percent commission.
The hardest part of building a marketplace was getting enough sellers before the buyers arrived.
Common phrases
two-sided marketplace · online marketplace · take rate · marketplace model
Business to business: describes companies that sell products or services to other businesses rather than to individual consumers.
Where you use it
Used like an adjective: B2B startup, B2B sales, B2B SaaS. The opposite is B2C (business to consumer). B2B deals are usually bigger but slower, with several decision-makers; B2C usually needs many users and strong marketing.
Examples
We started as a consumer app but switched to B2B because companies were willing to pay.
In B2B sales, a single deal can take six months to close.
Usage note
The 2 is read as to: bee-to-bee. B2C is said the same way: bee-to-see.
The benefit a company may get from being the first to enter a new market, such as brand recognition, early customers and control of key resources.
Where you use it
Common in pitches and strategy talk, but investors are often sceptical: many winners were not first, and later companies learn from the first mover's mistakes. The opposite idea is a second-mover or fast-follower advantage.
Examples
We have a first-mover advantage in Turkey, but global players could arrive within a year.
First-mover advantage alone is not a moat; you also need customers who stay.
Common phrases
gain a first-mover advantage · enjoy a first-mover advantage · fast follower · first mover
To change an industry completely with a new product or business model, often by serving customers more cheaply or simply, so that established companies lose their position.
Where you use it
Very common, and sometimes overused, in startup language: disrupt the banking industry, a disruptive technology, disruption. The idea comes from Clayton Christensen's theory of disruptive innovation. Many investors are tired of pitches that claim to disrupt everything.
Examples
Digital banks are trying to disrupt traditional banking with lower fees and better apps.
Don't say you will disrupt the industry; show what customers can do now that they couldn't do before.
Usage note
In everyday English, disrupt is usually negative: the strike disrupted flights. In startup talk it is usually positive.
Common phrases
disrupt an industry · disruptive innovation · disruptive technology · ripe for disruption
Minimum viable product: the simplest version of a product that real customers can use, built quickly to test whether the idea solves their problem.
Where you use it
Used daily by founders, product teams and investors. You build, launch, test or ship an MVP, then learn from user feedback. An MVP can be very basic, such as a landing page, a spreadsheet or a manual service behind a simple app.
Examples
We launched the MVP in six weeks with only two features: booking and payment.
Don't spend a year on the app; build an MVP and see if anyone actually uses it.
Usage note
In sport, MVP means most valuable player. In startups it always means minimum viable product.
Common phrases
build an MVP · launch an MVP · test the MVP · MVP stage
The stage when a product clearly meets a real need in a large enough market, so customers buy it, keep using it and recommend it without much pushing.
Where you use it
A central idea in startup strategy, often shortened to PMF. Founders search for, reach, hit or lose product-market fit. Signs include strong retention, word-of-mouth growth and customers who would be very disappointed without the product. Investors often want to see it before a Series A.
Examples
We haven't found product-market fit yet; most users try the app once and never come back.
Once they hit product-market fit, sales almost doubled every quarter.
Common phrases
find product-market fit · reach product-market fit · signs of product-market fit · pre-product-market fit · PMF
The early process of talking directly to possible customers to understand their problems and test whether your idea is worth building.
Where you use it
A core step of the lean startup method. Founders do customer discovery interviews, often dozens of them, before writing much code. Good interviews ask about what people did in the past, not their opinions about a future product.
Examples
We did 60 customer discovery interviews with restaurant owners before building anything.
Customer discovery showed us that the real buyer was the finance team, not HR.
One of the first customers to try a new product, usually someone who has a strong need for it and accepts bugs and missing features.
Where you use it
Startups look for, find, win and listen to early adopters, because their feedback shapes the product. The term comes from the technology adoption life cycle, where early adopters come after innovators and before the early majority.
Examples
Our early adopters were small agencies who were tired of using spreadsheets.
We gave early adopters a lifetime discount in exchange for weekly feedback.
Common phrases
find early adopters · early adopter feedback · early adopter discount · win early adopters
To improve a product in repeated short cycles: build a version, test it with users, learn from the results and make the next version better.
Where you use it
Common in product and startup talk: iterate on the design, iterate quickly, fast iteration. The noun is iteration (the second iteration of the app). Founders often say they iterated many times before the product worked.
Examples
We iterate on the onboarding every two weeks, based on user recordings.
The first version flopped, but we kept iterating until people started paying.
Common phrases
iterate on · iterate quickly · fast iteration · next iteration
An early model of a product, often incomplete or not fully working, made to test an idea, show how something will look or collect feedback.
Where you use it
You build, design, test or show a prototype. It can be a clickable design in Figma, a 3D-printed part or a simple demo. A prototype is mainly for learning; an MVP is something real customers can actually use.
Examples
We showed a clickable prototype to ten clinics before writing a single line of code.
The hardware prototype overheated, so we changed the battery supplier.
Common phrases
build a prototype · clickable prototype · working prototype · test the prototype
A method of building a company by testing ideas quickly with real customers in a build, measure, learn cycle, instead of following a long, fixed plan.
Where you use it
Made popular by Eric Ries's 2011 book The Lean Startup. Its key ideas include the MVP, validated learning and the pivot. People say the lean startup method, a lean approach or running lean.
Examples
Following the lean startup approach, we tested the idea with a landing page before building anything.
The workshop teaches lean startup methods to university teams.
To check with real evidence, such as customer interviews, sign-ups or pre-orders, that an idea, a problem or a business assumption is true.
Where you use it
Founders validate the problem, the idea, the demand or the pricing. The noun validation is common too: idea validation, market validation. Strong validation means people pay or commit, not only that they say the idea is nice.
Examples
We validated demand by taking 120 pre-orders before the first unit was made.
Friends saying they like your idea does not validate it.
Common phrases
validate an idea · validate demand · idea validation · market validation · validate assumptions
A person or organisation that puts money into a company in exchange for a share of it or a future return, hoping the company will grow in value.
Where you use it
Used constantly in fundraising. You pitch to, meet, update or bring on investors. Startup investors include angels, venture capital funds, accelerators and corporate investors. Existing investors are the ones already on the cap table; new investors join in a later round.
Examples
We met about forty investors before anyone agreed to put money in.
Our existing investors will join the new round, but we need a new lead.
Common phrases
pitch to investors · existing investors · early-stage investor · investor meeting · bring on an investor
A wealthy individual who invests their own money in very young startups, usually in exchange for equity, and often gives advice and contacts as well.
Where you use it
Angels often write the first cheques after friends and family. People say angel, angel round and angel network (a group of angels who invest together). Many angels are former founders or executives. A typical phrase is we raised an angel round.
Examples
Two angel investors put in 150,000 dollars before we had any revenue.
Our first angel investor was a former CTO who also helped us hire engineers.
Usage note
In British English, business angel is also common.
Common phrases
angel round · angel network · business angel · raise money from angels
Money that professional funds invest in young, fast-growing companies in exchange for equity, accepting high risk in the hope that a few big winners pay for the losses.
Where you use it
Usually shortened to VC, which can mean the industry, a fund or a person (a VC). People say VC fund, VC firm and VC-backed company. VCs invest money from their own investors, called limited partners or LPs, so they need large exits.
Examples
We're not sure venture capital is right for us, because we don't plan to grow that fast.
The company has raised 30 million dollars in venture capital since 2021.
Common phrases
venture capital fund · venture capital firm · raise venture capital · VC-backed company
A planned period in which a startup raises a set amount of money from one or more investors, usually on the same terms and at the same valuation.
Where you use it
Often just called a round. Rounds are named by stage: pre-seed, seed, Series A, B, C. You raise, open, lead, join, close or extend a round. An oversubscribed round has more investor demand than the company needs.
Examples
We closed our first funding round in March with four angels and one small fund.
The funding round was oversubscribed, so some investors got a smaller allocation.
Common phrases
raise a round · close a round · lead a round · join a round · oversubscribed round
One of the first official funding rounds of a startup, used to build the product, hire the first team and look for product-market fit.
Where you use it
Seed money usually comes from angels, accelerators and seed funds. Before it there may be a pre-seed round, and after it comes a Series A. People say raise a seed round, seed-stage company, seed investor and seed funding.
Examples
We raised a 1.2 million dollar seed round to hire three engineers and launch in Germany.
The seed round gives us about 18 months to prove the model.
Common phrases
raise a seed round · seed funding · seed-stage company · seed investor · pre-seed round
To start and grow a company with your own savings and the money it earns from customers, without raising funds from outside investors.
Where you use it
Often used as bootstrapped (a bootstrapped company) or bootstrapping. Bootstrapped founders keep full control and ownership but usually grow more slowly and watch costs closely. Some companies bootstrap first and raise money later.
Examples
We bootstrapped for three years with consulting income before taking any outside money.
As a bootstrapped company, we only hire when revenue allows it.
Usage note
The idea comes from the old phrase pull yourself up by your bootstraps, meaning to succeed through your own effort.
Common phrases
bootstrapped company · bootstrap a startup · bootstrapping founders · stay bootstrapped
The first major venture capital round after seed funding, raised when a startup has real traction and needs money to grow a model that already works.
Where you use it
Later rounds follow the alphabet: Series B, Series C and so on, each usually bigger. You raise, lead, close or prepare for a Series A. It is usually led by a VC fund that often takes a board seat. Typical amounts differ a lot between the US, Europe and Turkey.
Examples
We plan to raise a Series A next year, once we pass one million in annual revenue.
The Series A was led by a Berlin-based fund, and our seed investors joined again.
Common phrases
raise a Series A · lead a Series A · Series A round · Series B · pre-Series A
A short document that lists the main terms of a proposed investment, such as the amount, valuation and investor rights, before the final legal contracts are written.
Where you use it
Getting a term sheet is a big moment in fundraising. Investors issue or send a term sheet; founders receive, negotiate, compare and sign it. Most parts are not legally binding, but confidentiality and exclusivity (no-shop) clauses usually are.
Examples
We got our first term sheet yesterday, but the liquidation preference is too aggressive.
Don't sign the term sheet before your lawyer has read every clause.
Common phrases
issue a term sheet · sign a term sheet · negotiate the term sheet · non-binding term sheet
A careful check that investors or buyers do before a deal, reviewing a company's finances, contracts, legal status, technology and team to find any risks.
Where you use it
Happens after a term sheet and before the money arrives. Investors do, carry out or complete due diligence; founders prepare a data room with the documents. Often shortened to DD. Legal, financial and technical due diligence are often done by different experts.
Examples
Due diligence took six weeks because our contracts were spread across three folders.
The fund is doing technical due diligence on our platform this week.
Common phrases
do due diligence · legal due diligence · technical due diligence · due diligence process · data room
The investor who puts the largest amount into a funding round, sets the main terms and often encourages other investors to join.
Where you use it
Founders often say the hardest part of a round is finding a lead. Once a lead commits, others follow; they are called followers or co-investors. The lead investor usually negotiates the term sheet and may take a board seat.
Examples
We have 400,000 in soft commitments, but we still need a lead investor.
The lead investor asked for one seat on the board.
Common phrases
find a lead investor · lead the round · co-investor · follow-on investment
A short-term loan from investors that turns into company shares at a later funding round, usually at a discount, instead of being paid back in cash.
Where you use it
Used in early rounds when founders and investors want to delay agreeing on a valuation. Key terms are the discount, the valuation cap, the interest rate and the maturity date. Unlike a SAFE, a convertible note is debt, so it has interest and a repayment date.
Examples
We raised 500,000 on a convertible note with a 20 percent discount and an 8 million cap.
The convertible note turned into shares when we closed the Series A.
Common phrases
issue a convertible note · valuation cap · conversion discount · maturity date · convert into equity
Simple agreement for future equity: a contract in which an investor gives money now and receives shares later, usually at the next priced funding round.
Where you use it
Created by Y Combinator in 2013 and now common in early-stage rounds, especially in the US. A SAFE is not a loan: it has no interest and no maturity date. Its key terms are the valuation cap and the discount. People say raise on a SAFE or sign a SAFE.
Examples
We raised our pre-seed round on a post-money SAFE with a 6 million cap.
The SAFE will convert into preferred shares at our next priced round.
Usage note
People sometimes say SAFE note, but a SAFE is not a debt note.
Common phrases
raise on a SAFE · post-money SAFE · sign a SAFE · SAFE with a valuation cap
Ownership in a company, divided into shares. In startups, equity is what founders, employees and investors hold, and its value grows if the company succeeds.
Where you use it
A very common word in fundraising and hiring. You give up, offer, receive or split equity. Equity financing means raising money by selling shares rather than borrowing. Early employees often accept a lower salary plus equity.
Examples
We gave up 20 percent of our equity in the seed round.
The offer was a modest salary plus equity, which is normal for a company at this stage.
Common phrases
give up equity · equity stake · equity financing · salary plus equity · split the equity
The estimated value of a company, agreed between founders and investors in a funding round, which decides how much ownership investors get for their money.
Where you use it
Central to every negotiation. Investors and founders discuss, set, raise or cut the valuation. Early-stage valuations depend more on the team, the market and traction than on profits. People distinguish pre-money and post-money valuation.
Examples
The investors offered 2 million dollars at an 8 million valuation.
A very high valuation now can make the next round harder if growth slows.
Common phrases
at a valuation of · set the valuation · valuation cap · high valuation · negotiate the valuation
The share of a company that a person or investor owns, usually given as a percentage, for example a 10 percent stake.
Where you use it
Common in deal news and negotiations. Investors take, buy, hold, sell or increase a stake. A majority stake is more than 50 percent, a minority stake less. Founders talk about keeping a meaningful stake after several rounds.
Examples
The fund took a 15 percent stake in the company for 1.5 million euros.
After three rounds, each founder still holds a stake of about 20 percent.
Usage note
Do not confuse it with steak (meat), which sounds the same. Also, a stakeholder is anyone affected by a company, not only its owners.
Common phrases
take a stake · majority stake · minority stake · hold a stake · acquire a stake
Short for capitalisation table: a list or spreadsheet that shows who owns what share of a company, including founders, investors, employees and options.
Where you use it
Every investor asks to see it. You keep, update, clean up or model the cap table. A clean cap table has few, clearly documented owners; a messy one, with many small holders or unclear agreements, can scare investors away.
Examples
Before the round, our lawyer helped us clean up the cap table.
Can you model how the cap table will look after the Series A?
Usage note
Cap here is short for capitalisation (US capitalization), not a hat and not a limit as in valuation cap.
Common phrases
clean cap table · messy cap table · update the cap table · pro forma cap table
The fall in an existing owner's percentage of a company when new shares are issued, for example to new investors or for an employee option pool.
Where you use it
A normal part of raising money: founders get diluted in every round. People say dilute, get diluted and anti-dilution protection. Dilution lowers your percentage, but if the valuation rises, the value of your shares can still go up.
Examples
We accepted 18 percent dilution in the seed round, which is fairly standard.
Expanding the option pool means some dilution for all current shareholders.
The value of a company just before new investment money comes in. It is used to work out the price per share in a funding round.
Where you use it
Often shortened to pre or pre-money: we raised 2 million at an 8 pre. Founders must always check whether a number is pre-money or post-money, because the difference changes how much of the company they sell.
Examples
They offered 1 million at a 4 million pre-money valuation, so we would sell 20 percent.
Is that 5 million the pre-money valuation or the post-money?
Common phrases
at a pre-money valuation of · pre-money and post-money · agree on a pre-money valuation
The value of a company right after a funding round: the pre-money valuation plus the new money invested.
Where you use it
New investors' ownership is calculated from it: 2 million invested at a 10 million post-money valuation buys 20 percent. Often shortened to post. Many SAFEs today use a post-money valuation cap.
Examples
We raised 3 million at a 15 million post-money valuation, so the new investors own 20 percent.
Check whether the new option pool is counted in the pre-money or the post-money valuation.
Common phrases
post-money valuation cap · at a post-money valuation of · post-money ownership
A system in which founders or employees earn their shares or options gradually over time, so that someone who leaves early does not keep everything.
Where you use it
A common standard is four years with a one-year cliff: nothing vests in the first year, then 25 percent vests at once and the rest monthly. People say shares vest, vesting schedule, fully vested and accelerated vesting (faster vesting, for example after an acquisition).
Examples
All four founders agreed to four-year vesting with a one-year cliff.
He left after eight months, before his vesting cliff, so he kept no shares.
The right to buy a number of company shares later at a fixed price, often given to startup employees so they can share in the company's success.
Where you use it
Employees are granted options, which vest over time; they then exercise them by paying the strike price. People say stock options, share options (UK), an option grant and ESOP (employee stock option plan). Options only have value if the share price rises above the strike price.
Examples
The offer includes 0.5 percent in stock options, vesting over four years.
Most early employees exercised their stock options when the company was acquired.
Usage note
In finance, an option can also be a contract traded on an exchange. In startups it usually means an employee's right to buy company shares.
Common phrases
grant stock options · exercise stock options · strike price · employee stock option plan · share options
A funding round in which a company is valued lower than in its previous round, so new shares are sold at a lower price than before.
Where you use it
Down rounds usually happen when growth slows or markets fall. They cause extra dilution, can trigger anti-dilution clauses for earlier investors and often hurt team morale. The opposite is an up round; a round at the same valuation is a flat round.
Examples
We had to accept a down round after the market crash, at half our previous valuation.
A down round is painful, but it is better than running out of cash.
Common phrases
raise a down round · avoid a down round · up round · flat round
A term that gives investors the right to get their money back, or a multiple of it, before other shareholders when the company is sold or closed.
Where you use it
Common in venture deals with preferred shares. A 1x non-participating preference, where investors get either their money back or their share of the sale, whichever is higher, is widely seen as standard. Higher multiples or participating preferences favour investors and should be read carefully.
Examples
With a 1x liquidation preference, the fund gets its 5 million back first if we sell the company.
The founders received almost nothing from the sale because of a 3x liquidation preference.
Ownership in a company that someone earns through work and time rather than money, typical of founders and early team members who are paid little or nothing.
Where you use it
Used when founders talk about the value of unpaid work: we put in two years of sweat equity. It also describes giving equity to developers or designers instead of paying them. Such deals need clear written agreements and usually vesting.
Examples
The developer joined for sweat equity, taking 5 percent instead of a salary for the first year.
Investors respect the sweat equity the founders have put in, but they still want to see results.
Common phrases
put in sweat equity · sweat equity deal · in exchange for sweat equity
A part of a company's shares set aside for future employees, advisors and other team members, usually granted as stock options.
Where you use it
As part of a funding round, investors often ask founders to create or top up an option pool, frequently around 10 to 20 percent. If the pool is added before the investment, only the existing owners are diluted, so its size is an important point in negotiations.
Examples
The new investors asked us to expand the option pool to 15 percent before the round.
We'll use the option pool to hire a head of sales and two senior engineers.
Common phrases
create an option pool · expand the option pool · ESOP pool · unallocated options
A short slide presentation, often 10 to 20 slides, that explains a startup's problem, solution, market, team, numbers and funding needs to investors.
Where you use it
Often just called the deck. You prepare, send, share or update your deck. Investors may ask for it before a meeting, and many read a deck in a few minutes, so the story must be clear. A teaser deck is a short version sent by email.
Examples
Can you send me your pitch deck before Thursday? I'd like to share it with my partners.
We cut the pitch deck from 25 slides to 12, and meetings started to go much better.
Common phrases
send a pitch deck · update the deck · investor deck · teaser deck
To present your business idea or product to investors, customers or partners in a short, convincing way so that they agree to support or buy it.
Where you use it
Used both as a verb (pitch an idea, pitch to investors) and as a noun (a pitch, a pitch meeting). Founders pitch at demo days, in competitions and in one-to-one meetings. A pitch can last thirty seconds or an hour.
Examples
I'm pitching to three funds next week, so I need the new numbers by Friday.
She pitched the idea in five minutes and got a follow-up meeting the same day.
Usage note
Pitch also means a sports field and how high or low a sound is. In business it is about selling an idea.
Common phrases
pitch to investors · pitch an idea · pitch meeting · pitch competition · nail the pitch
A very short, clear description of your business that you can say in about thirty to sixty seconds, the time of a short elevator ride.
Where you use it
Used at networking events and conferences, in emails and at the start of meetings. You prepare, practise, give or refine an elevator pitch. A good one says what you do, for whom, which problem you solve and why you are different.
Examples
Give me your elevator pitch: what does your company actually do?
I practised my elevator pitch so many times that I could say it in my sleep.
Usage note
British English says lift, but the phrase is almost always elevator pitch, even in the UK.
Common phrases
give an elevator pitch · 30-second elevator pitch · practise your elevator pitch · refine your pitch
An event at the end of an accelerator programme where each startup pitches on stage to an audience of investors, journalists and partners.
Where you use it
Demo day pitches are short, often three to five minutes. Founders prepare for and pitch at demo day, and investor meetings often follow in the next weeks. The term is also used for any event where startups show their products to investors.
Examples
We have four minutes at demo day, so every slide has to count.
After demo day, we booked twenty investor meetings in two weeks.
Common phrases
pitch at demo day · demo day presentation · prepare for demo day · after demo day
In a pitch, the specific thing you request from investors, usually how much money you want to raise and on what terms, often shown on the final slide.
Where you use it
Used as a noun in pitching: the ask, our ask, What's your ask? A clear ask gives the amount, the type of round and what the money will achieve. Outside fundraising, an ask can be any request, such as an introduction or a pilot.
Examples
Our ask is 1.5 million dollars to reach 100 hospital clients in 18 months.
The pitch was great, but she forgot to make the ask at the end.
Usage note
Ask as a noun is informal business English. In formal writing, request is usually better.
Common phrases
the ask · make the ask · a clear ask · What's your ask?
A breakdown of how a startup plans to spend the money it raises, such as on hiring, product development and marketing, usually shown as percentages.
Where you use it
A standard slide in a pitch deck, usually next to the ask. Investors want to see that the use of funds is linked to clear milestones, such as reaching a certain revenue level before the next round. It also appears in investment agreements and grant applications.
Examples
Our use of funds: 50 percent engineering, 30 percent sales and 20 percent operations.
The investor asked us to link the use of funds to milestones for the next 18 months.
Common phrases
use of funds slide · break down the use of funds · use of proceeds
A regular report, usually a monthly or quarterly email, in which founders share key numbers, progress, problems and requests with their investors.
Where you use it
A good investor update includes highlights, KPIs, cash and runway, lowlights and specific asks, such as introductions to customers or candidates. Founders also send updates to potential investors to build trust before the next round.
Examples
In this month's investor update, we shared that MRR grew 9 percent and runway is 14 months.
Two of our angels made customer introductions after reading the investor update.
Common phrases
monthly investor update · send an investor update · highlights and lowlights · investor update email
Clear evidence that customers want a product, such as growing users, sales, revenue or partnerships, which shows that the startup is moving forward.
Where you use it
One of the first things investors ask about: What traction do you have? Founders gain, show, get or build traction. Pitch decks often have a traction slide with a growth chart and key numbers. Early traction can be a waiting list or a few pilot customers.
Examples
We have strong early traction: 3,000 users and 40 paying companies in four months.
Come back when you have more traction, and we'll talk again.
Common phrases
gain traction · early traction · show traction · traction slide
To grow a business quickly to many more customers, markets or sales without costs and effort growing at the same speed.
Where you use it
Used constantly in startup talk: we're ready to scale, scaling the team, a scale-up. Investors look for scalable business models, meaning ones that can serve ten times more customers without ten times more cost. Scaling too early, before product-market fit, is a common reason startups fail.
Examples
We'll scale to five new cities once the unit economics work in Istanbul.
Scaling the sales team before customers were happy was our biggest mistake.
Common phrases
scale up · scale the business · ready to scale · scale fast · scalable model
The loss of customers or subscribers who stop using or paying for a product in a given period, usually measured as a monthly or yearly percentage.
Where you use it
Used as a noun (high churn, churn rate) and as a verb (customers churn). Subscription startups track customer churn and revenue churn. Even fast growth cannot save a product if churn is high, because new customers simply replace the ones you lose.
Examples
Monthly churn dropped from 6 to 3 percent after we added annual plans.
Most of our churn happens in the first 30 days, so we're fixing onboarding.
A plan for how a company will bring a product to customers: who it will target first, how it will reach them, how it will sell and at what price.
Where you use it
Usually shortened to GTM. Founders define, test or change their go-to-market strategy, and investors ask about it in every pitch. Two common approaches are sales-led (a sales team closes deals) and product-led (users sign up and pay on their own).
Examples
Our go-to-market strategy starts with dentists in Istanbul and Ankara, then moves to other cities.
The product is good, but the go-to-market strategy for large corporate clients is still unclear.
Common phrases
go-to-market plan · GTM strategy · product-led growth · sales-led approach · go-to-market team
Fast, low-cost experiments across marketing, product and data to find creative ways of getting more users and customers.
Where you use it
Popular in startups from the early 2010s; today many teams simply say growth or growth marketing. A growth hacker tests ideas such as referral programmes, viral loops and onboarding changes, measures the results and keeps what works.
Examples
One growth hacking idea, a free month for every referral, doubled our sign-ups.
We don't have a marketing budget, so growth hacking is all we can do.
A growth pattern where numbers stay flat for a while and then rise very sharply, so the chart looks like a hockey stick.
Where you use it
Used about revenue or user charts in pitch decks and investor talk. Investors love hockey-stick growth, but they are careful with forecasts that show it without evidence. People also say the hockey stick or a hockey-stick curve.
Examples
After two flat years, the app finally showed hockey-stick growth when schools started using it.
Every startup forecast shows hockey-stick growth; investors want to know what will cause it.
Common phrases
hockey-stick curve · hockey-stick chart · show hockey-stick growth
The single most important number a company uses to measure the real value customers get from its product, guiding decisions across the whole team.
Where you use it
Popular in growth and product teams. Examples are nights booked for a travel platform or messages sent for a chat app. A good north star metric reflects customer value and leads to revenue over time; teams choose it, define it and align around it.
Examples
Our north star metric is the number of invoices paid through the platform each week.
Every feature request is judged by one question: will it move our north star metric?
Common phrases
define a north star metric · align around the north star · move the north star metric
A company's ability to keep its customers or users over time, usually measured as the percentage who are still active or paying after a certain period.
Where you use it
Retention is the opposite of churn and one of the clearest signs of product-market fit. Teams study retention curves and cohort analysis: day 1, day 7 and day 30 retention for apps, or net revenue retention for SaaS. You improve, measure or drive retention.
Examples
Day-30 retention went up from 18 to 31 percent after the redesign.
Investors cared more about our retention than our download numbers.
A situation in which a product becomes more valuable to each user as more people use it, as with social networks, payment systems and marketplaces.
Where you use it
Often used in the plural: strong network effects. A direct network effect connects users of the same kind, as in a messaging app; an indirect or two-sided one connects different groups, such as buyers and sellers. Network effects are seen as one of the strongest moats.
Examples
Each new restaurant on the app attracts more diners, which attracts more restaurants: that's our network effect.
Without network effects, a bigger competitor could copy us in six months.
Common phrases
strong network effects · two-sided network effect · benefit from network effects · direct network effect
The total money a company earns from selling its products or services in a period, before any costs are taken away.
Where you use it
A basic word in every pitch and report. You generate, grow, report or forecast revenue. Startups talk about recurring revenue, which repeats every month or year, and pre-revenue companies, which have no sales yet.
Examples
Monthly revenue grew from 40,000 to 150,000 dollars in one year.
We're still pre-revenue, so investors are looking mostly at the team and the pilot results.
Usage note
Turkish speakers sometimes use revenue and profit as if they meant the same thing. Revenue is the money coming in; profit is what is left after costs.
The amount of money a startup spends each month beyond what it earns, showing how fast it is using up the cash in the bank.
Where you use it
Used in board meetings, investor updates and budgets. You reduce, cut, control or increase your burn rate; people also just say burn (our burn is 80k a month). Gross burn is total monthly spending; net burn is spending minus revenue.
Examples
Our burn rate is about 90,000 dollars a month, mostly salaries.
After the hiring freeze, we cut the burn rate by a third.
Common phrases
monthly burn rate · reduce the burn rate · net burn · gross burn · high burn
The number of months a startup can keep operating before its cash runs out, usually calculated as cash in the bank divided by monthly net burn.
Where you use it
A key number for founders and investors. You have, extend, calculate or run out of runway. Founders usually start fundraising while they still have many months of runway left, because rounds take time to close.
Examples
With 1.8 million in the bank and a burn of 100k, we have 18 months of runway.
We delayed two hires to extend our runway until the next round.
Usage note
The word comes from aviation: like a plane, a startup needs to take off before the runway ends.
Common phrases
months of runway · extend the runway · run out of runway · short runway
The average amount a company spends on sales and marketing to win one new paying customer, usually shortened to CAC.
Where you use it
Used in growth meetings, investor decks and unit economics. CAC is usually compared with lifetime value (LTV) to see whether growth is healthy. You calculate, track, lower or break down CAC by channel.
Examples
Our customer acquisition cost doubled when we moved from referrals to paid ads.
Investors asked us to break down customer acquisition cost by channel.
Common phrases
lower customer acquisition cost · blended CAC · CAC payback period · LTV to CAC ratio
The revenue and costs connected to one unit of the business, such as one customer or one order, which show whether each sale makes or loses money.
Where you use it
Investors ask whether the unit economics work before they fund growth. Typical numbers are CAC, LTV, gross margin per order and payback period. Founders say the unit economics work, don't work yet or are improving.
Examples
Each delivery loses us two dollars, so the unit economics don't work yet.
Fix the unit economics first; growing a loss-making model only makes the losses bigger.
Common phrases
strong unit economics · the unit economics work · improve unit economics · positive unit economics
The total revenue or profit a company expects to earn from one customer during the whole time that customer keeps buying, often shortened to LTV.
Where you use it
Also called customer lifetime value (CLV or CLTV). It is compared with customer acquisition cost as the LTV to CAC ratio; about three to one is a commonly quoted rule of thumb for subscription businesses. Methods differ: some use revenue, others gross margin.
Examples
Our average lifetime value is 900 dollars, and it costs us 250 to acquire a customer.
Lower churn would raise lifetime value more than any price increase.
Common phrases
customer lifetime value · LTV to CAC ratio · increase lifetime value · average lifetime value
The share of revenue left after paying the direct costs of making or delivering a product, before other costs such as marketing, rent and office expenses.
Where you use it
Usually given as a percentage. Software companies often have high gross margins, while hardware, delivery and retail businesses usually have lower ones. Investors compare gross margin across similar companies and watch whether it improves as you scale.
Examples
Our gross margin is 78 percent, mostly because hosting costs are low.
If we buy in larger volumes, gross margin should rise to about 40 percent.
Usage note
The g in margin is soft, like the j in jam.
Common phrases
high gross margin · improve gross margin · gross margin per order · gross margin percentage
To reach the point where revenue equals costs, so the company is neither losing money nor making a profit.
Where you use it
The verb is two words (we expect to break even next year); the noun and adjective use a hyphen: break-even, the break-even point. Breaking even matters to startups because after that point they no longer need new funding to survive.
Examples
At the current growth rate, we'll break even in about 14 months.
We need 2,000 paying customers to reach the break-even point.
Common phrases
break even · break-even point · reach break-even · break-even analysis
Monthly recurring revenue: the predictable income a subscription business earns every month from active customers, not counting one-off fees.
Where you use it
A key metric for SaaS and subscription startups, reported in every investor update. ARR (annual recurring revenue) is usually MRR times twelve. People talk about new MRR, churned MRR and expansion MRR, and about MRR growth month over month.
Examples
We crossed 50k MRR last month, up from 30k in January.
Our MRR grew 12 percent month over month for the whole quarter.
The movement of money into and out of a business over a period. Positive cash flow means more money is coming in than going out.
Where you use it
A profitable company can still fail if customers pay late and cash runs out, so founders watch cash flow closely. People say cash-flow positive, negative cash flow, cash flow forecast and cash flow problems.
Examples
We became cash-flow positive in March, so we no longer depend on the next round.
Big clients pay in 90 days, which creates cash flow problems for a small team like ours.
Making more money than it spends, so that a business has money left after paying all its costs over a period.
Where you use it
Used about companies, products, customers and channels: a profitable business, our most profitable customers. Startups often grow first and become profitable later. People say become, stay or get profitable, and the noun is profitability, as in the path to profitability.
Examples
The company became profitable in its fourth year without raising more money.
Our enterprise customers are far more profitable than small businesses.
Common phrases
become profitable · profitable growth · path to profitability · highly profitable
Key performance indicator: a number a company tracks regularly to see whether it is reaching its most important goals, such as revenue, active users or churn.
Where you use it
You set, track, report, hit or miss KPIs. Startups usually focus on a few KPIs that fit their stage and model, and share them in dashboards, board meetings and investor updates. Vanity metrics, such as app downloads without real use, are not good KPIs.
Examples
Our main KPI this quarter is weekly active teams, not sign-ups.
We missed two of our five KPIs, so the board asked for a new plan.
Common phrases
set KPIs · track KPIs · hit a KPI · KPI dashboard · vanity metrics
To officially register a business as a company, so that it becomes a separate legal person that can sign contracts, own assets and issue shares.
Where you use it
Founders incorporate before taking investment, signing big contracts or giving out equity. People ask where you are incorporated, because investors may prefer certain places; many US-funded startups incorporate in Delaware. The noun is incorporation.
Examples
We incorporated as soon as the first investor said yes.
The fund only invests in companies incorporated in Delaware or the UK.
Usage note
In general English, incorporate also means to include: incorporate feedback into the design.
Common phrases
incorporate a company · incorporated in Delaware · certificate of incorporation · incorporate as a limited company
A type of company whose owners are not personally responsible for its debts beyond the money they put in, often shortened to LLC in the US.
Where you use it
Limited liability is the key idea: if the company fails, the founders do not lose their homes. Names differ by country: LLC in the US, Ltd in the UK, GmbH in Germany. US startups planning to raise venture capital usually choose a C corporation instead of an LLC.
Examples
We set up a limited liability company so that our personal savings were protected.
Our lawyer explained that a limited liability company in the US is taxed differently from a corporation.
Usage note
A UK limited company (Ltd) and a US LLC are not the same legal form, although both limit the owners' liability.
Common phrases
set up a limited liability company · limited liability · private limited company · LLC
A written contract between co-founders that sets out who owns what, who does what, how decisions are made and what happens if someone leaves.
Where you use it
Usually signed very early, before investors arrive. It covers the equity split, vesting, roles, intellectual property and leaving rules. Founders draft, sign or put in place a founders' agreement. The apostrophe is often dropped: founders agreement.
Examples
Our founders' agreement says that anyone who leaves in the first year gives back their shares.
Sign a founders' agreement while you are still friends, not after the first big argument.
Common phrases
sign a founders' agreement · draft a founders' agreement · founders' agreement template
Creations of the mind that a company can legally own, such as code, inventions, designs, brand names and content, protected by patents, trademarks and copyright.
Where you use it
Usually shortened to IP. During due diligence, investors check that the company, not a founder or a freelancer, owns its IP. Founders assign IP to the company, file patents and register trademarks.
Examples
All code written by our freelancers must be assigned to the company as intellectual property.
The investor wanted proof that the company owns all of its intellectual property.
Common phrases
protect intellectual property · IP assignment · own the IP · intellectual property rights
A contract between the owners of a company that sets out their rights and duties, such as voting, selling shares, board seats and investor protections.
Where you use it
Usually signed when investors join, based on the term sheet. Common clauses include pre-emption rights, drag-along and tag-along rights, and good leaver and bad leaver rules. Often shortened to SHA in Europe; US deals usually split these terms across several documents.
Examples
The shareholders' agreement gives our seed investors the right to join future rounds.
The lawyers spent two weeks on the drag-along clause in the shareholders' agreement.
Common phrases
sign a shareholders' agreement · drag-along right · tag-along right · pre-emption rights
Non-disclosure agreement: a contract in which people promise not to share confidential information they receive, such as plans, code or customer data.
Where you use it
Founders sign NDAs with partners, suppliers, freelancers and possible buyers. Most venture capital investors do not sign NDAs just to hear a pitch, because they see many similar ideas, so asking for one at a first meeting can look inexperienced.
Examples
Before we share the code, could you sign our NDA?
The buyer signed an NDA before seeing our customer list.
Common phrases
sign an NDA · mutual NDA · under NDA · breach an NDA
A group of people elected to oversee a company's management and make major decisions, such as approving budgets, fundraising, key hires and the sale of the company.
Where you use it
Startup boards are small: often the founders, one or two investors and sometimes an independent member. People talk about a board seat, a board meeting, board approval and an observer seat, which allows someone to attend without voting. Founders prepare a board deck before each meeting.
Examples
The board of directors approved the new budget and two senior hires.
After the Series A, our board of directors has five members: three founders and two investors.
A person who starts a company and builds it in its early days, usually owning a large part of it and taking the biggest risks.
Where you use it
A key word in startup talk, pitch decks and investor meetings. Investors often say they invest in founders, not ideas. Common forms are first-time founder, serial founder, solo founder and founder-led company. On LinkedIn people write Founder & CEO.
Examples
The investors liked the founders more than the product, so they agreed to a second meeting.
As a first-time founder, she asked two experienced CEOs to review her plan.
Usage note
Do not confuse founder with funder, a person or organisation that gives money. Founders start companies; funders pay for them.
Common phrases
first-time founder · serial founder · solo founder · founder and CEO · founder-led company
One of two or more people who start a company together and share the ownership, the work and the main decisions from the beginning.
Where you use it
Used in team slides, introductions and job titles. You look for, meet, find or lose a co-founder, and you agree on how to split equity between co-founders. The spelling cofounder without a hyphen is also common, especially in American texts.
Examples
I met my co-founder at a hackathon, and we built the first version in three weekends.
The two co-founders split the equity 50/50, which later made decisions difficult.
Common phrases
find a co-founder · co-founder conflict · split equity between co-founders · co-founder and CTO
A person who sees a business opportunity and starts a new company to use it, accepting financial risk in the hope of profit and growth.
Where you use it
A general word used in the media, in education and in everyday speech; inside startups people more often say founder. Related forms are entrepreneurship (the activity), entrepreneurial (as in an entrepreneurial mindset) and serial entrepreneur (someone who has started several companies).
Examples
She became an entrepreneur at 24, when she turned her university project into a company.
The programme supports young entrepreneurs with training, mentors and small grants.
Usage note
The word comes from French and is often misspelled. Remember the -preneur ending: entre-pre-neur, stressed on the last syllable.
Common phrases
serial entrepreneur · young entrepreneur · aspiring entrepreneur · tech entrepreneur · entrepreneurial mindset
An experienced person who gives a startup regular advice and introductions, often in exchange for a small amount of equity rather than a salary.
Where you use it
Startups often list advisors in their pitch deck to show expertise. An advisory board is a group of advisors with no legal power, unlike the board of directors. Advisor equity is usually small and vests over time. Both spellings, advisor and adviser, are correct.
Examples
Our advisor, a former hospital director, introduced us to our first three clients.
We offered the advisor 0.25 percent equity, vesting over two years.
Usage note
An advisor usually has a formal role and may receive equity; a mentor usually helps informally and without payment.
Common phrases
advisory board · startup advisor · advisor equity · bring on an advisor
A co-founder who leads the building of the product, especially the software, and usually becomes the company's first CTO.
Where you use it
Non-technical founders often say they are looking for a technical co-founder. Investors in tech startups usually prefer teams that can build the product themselves rather than relying fully on outsourced developers. A technical co-founder usually gets a significant equity share.
Examples
I have the industry contacts, but I need a technical co-founder to build the platform.
Our technical co-founder wrote the first version of the app in two months.
Common phrases
find a technical co-founder · non-technical founder · technical co-founder and CTO
A fixed-term programme, often three to six months, that gives a group of startups mentoring, training, contacts and usually a small investment in exchange for equity.
Where you use it
Startups apply to, get into, join or graduate from an accelerator. Each group is called a cohort or batch, and the programme usually ends with a demo day. Y Combinator and Techstars are well-known examples.
Examples
We got into an accelerator in London, and it changed how we talk to investors.
The accelerator invests 100,000 dollars in each startup for a 7 percent stake.
Usage note
Accelerators and incubators are often confused: accelerators are short, intensive and usually invest money; incubators support earlier ideas over a longer time.
Common phrases
apply to an accelerator · accelerator programme · accelerator cohort · graduate from an accelerator
An organisation that supports very early startups over a longer period, offering office space, advice, training and sometimes access to funding.
Where you use it
Incubators are often run by universities, public bodies, technology parks or large companies. Startups are accepted into, based at or supported by an incubator. Unlike accelerators, many incubators do not take equity.
Examples
We spent our first year in the university incubator, where the desks were free.
The incubator helped us find our first pilot customer through its network.
Common phrases
university incubator · business incubator · join an incubator · incubation programme
A privately owned startup valued at one billion US dollars or more, a level that was very rare when the term became popular in 2013.
Where you use it
Used in the media and in investor talk: become a unicorn, the country's first unicorn. A decacorn is valued at 10 billion dollars or more. The word refers to private companies; after an IPO, people usually stop using it.
Examples
The gaming company became a unicorn when its latest round valued it at 1.2 billion dollars.
Not every startup needs to be a unicorn; many great companies are worth much less.
Common phrases
become a unicorn · unicorn status · unicorn startup · decacorn
Describes a startup in its first phase, before strong revenue or product-market fit, or an investor who puts money into companies at this phase.
Where you use it
Used before a noun with a hyphen: early-stage startup, early-stage investor, early-stage funding. Without a following noun it is two words: the company is at an early stage. The opposite is late-stage or growth-stage. Pre-seed and seed rounds are usually considered early-stage.
Examples
The fund only invests in early-stage startups in health and education.
Early-stage investors bet mostly on the team, because there is little data yet.
An experienced person who gives a founder advice, feedback and support over time, usually without being paid, based on their own business experience.
Where you use it
Accelerators and incubators give startups access to mentors. People say find a mentor, mentor a founder (as a verb), mentorship and mentoring sessions. A good mentor asks hard questions and opens doors, but the founders still make the decisions.
Examples
My mentor helped me prepare for the negotiation with our first big client.
Every startup in the programme meets its mentor once a week.
To change a basic part of your business, such as the product, the customer group or the way you make money, because the original plan is not working.
Where you use it
Very common in startup talk, both as a verb (we pivoted to B2B) and as a noun (a pivot). Founders pivot after customer feedback or weak numbers. A pivot keeps what the team has learned and changes direction; it is not the same as starting from zero.
Examples
We pivoted from a consumer app to software for clinics after talking to fifty doctors.
The board asked whether it was time to pivot or to keep going for another six months.
Common phrases
pivot to · pivot away from · make a pivot · a successful pivot · pivot the business
The way founders and investors turn their shares into cash, usually when the company is sold to another company or lists its shares on a stock exchange.
Where you use it
Venture capital funds need exits to return money to their own investors. People talk about an exit strategy, a successful exit and exit value. The two main routes are an acquisition and an IPO; selling shares to another investor in a secondary sale is another option.
Examples
Investors asked about our exit strategy: who might buy a company like ours?
After the exit, both founders started new companies.
Common phrases
exit strategy · successful exit · exit value · have an exit · exit opportunity
The purchase of one company by another, through buying most or all of its shares or its business. It is the most common exit for startups.
Where you use it
Often used with the verb acquire: the company was acquired by a bank. People talk about mergers and acquisitions (M&A), an acquisition offer and the acquirer, meaning the buyer. An acqui-hire is an acquisition made mainly to hire the team.
Examples
The acquisition was announced on Monday, but the price was not disclosed.
We turned down an acquisition offer because we believed we could grow much bigger.
Usage note
Do not mix it up with customer acquisition, which means winning new customers, not buying a company.
Common phrases
acquisition offer · mergers and acquisitions · announce an acquisition · be acquired by
Initial public offering: the first time a private company sells its shares to the public and lists them on a stock exchange.
Where you use it
A major exit route for large startups. Companies go public, file for an IPO, price their shares and list on an exchange such as Nasdaq or Borsa Istanbul. Preparing for an IPO takes a long time and needs audited accounts and strong governance.
Examples
The company is preparing for an IPO in New York next year.
Early employees could finally sell some of their shares after the IPO.
Common phrases
go public · file for an IPO · IPO price · plan an IPO · post-IPO
The idea of testing ideas quickly and cheaply so that you find out early what does not work and can stop or change direction before wasting time and money.
Where you use it
A popular saying in startups and tech companies, often in the form fail fast, learn fast. It does not mean that failure is the goal; it means getting quick feedback. People also say fail fast and fail cheap, or fail forward.
Examples
We believe in failing fast, so every new feature starts as a two-week experiment.
Fail fast: if nobody signs up in a month, drop the idea and test the next one.
Common phrases
fail fast, learn fast · fail fast and fail cheap · fail forward · culture of failing fast
To close a company or product and stop operating, usually because it has run out of money or the business is not working.
Where you use it
Founders shut down a company, a product or a service. The noun is shutdown, written as one word. Shutting down well means paying staff and suppliers, returning any remaining money to investors and closing the company legally.
Examples
We decided to shut down the company after the last two investors said no.
The startup shut down its delivery service but kept the software business.
Common phrases
shut down the company · shut down a product · wind down · shutdown costs
A review done after a project, launch or company has ended, especially after a failure, to understand what went wrong and what can be learned.
Where you use it
Founders often write public post-mortems after shutting down a startup, and teams hold post-mortems after outages or failed launches. A good one is blameless: it focuses on causes and lessons, not on blaming people. Also written postmortem.
Examples
In his post-mortem, the founder wrote that they scaled before customers really needed the product.
Let's hold a post-mortem on the failed launch next week.
Common phrases
write a post-mortem · hold a post-mortem · blameless post-mortem · startup post-mortem
Ten questions from this glossary. Pick the right meaning for each term and see your score.
How to learn entrepreneurship & startups vocabulary
Learn the funding path in order: bootstrapping, angel money, pre-seed, seed, Series A and later rounds, then an exit. Each stage has its own words, and investors expect you to know where your company stands.
Study the pairs that are easy to mix up: pre-money and post-money valuation, revenue and profit, burn rate and runway, MRR and ARR, LTV and CAC. Most mistakes in pitch meetings come from these pairs.
Read real startup texts in English, such as published pitch decks, accelerator application forms, investor update emails, founder blogs and the standard term sheet templates that accelerators share. Notice the verbs: raise a round, close a round, hit product-market fit, extend the runway.
Write a one-minute elevator pitch in English and say it out loud until it sounds natural. Make sure it answers the questions investors always ask: what problem, for whom, why now, how big the market is and what your ask is.
Practise saying numbers fast and correctly. English uses a comma for thousands and a dot for decimals (1,500,000 and 2.5%), the opposite of Turkish, and investors talk in shortcuts such as “two mil”, “a 10 million post” or “three x revenue”.
Frequently asked questions
What is the difference between a startup and a small business?
Both are new companies, but they aim for different things. A small business, such as a café or a local agency, usually wants steady profit from a proven model. A startup tries to grow very fast with a new, repeatable and scalable model, often accepts losses for years and is usually funded by investors who hope for a large exit.
What is the difference between a seed round and a Series A?
A seed round is one of the first outside investments, used to build the product and find product-market fit; it often comes from angels, accelerators and small funds. A Series A comes later, when the company has real traction and needs money to grow a working model, and it is usually led by a venture capital fund. Amounts vary a lot by country and year.
Are equity, shares and stake the same thing?
They are closely related. Equity is ownership of a company in general. Shares are the units that ownership is divided into. Your stake is the part of the company you own, usually given as a percentage, for example a 15% stake. So an investor buys shares, receives equity and ends up with a stake.
Do Turkish founders use the English words?
Very often, yes. Words such as startup, pitch, MVP, traction, runway, burn rate, exit, term sheet and cap table are used as they are inside Turkish sentences, especially in tech. Turkish equivalents like girişim, yatırım turu, değerleme and melek yatırımcı are also common, and official or legal documents use Turkish terms. Knowing both helps you in local meetings and with foreign investors.
