Disrupting disruption with disruptive disruptions since 2010.
A contractual protection for investors ensuring their ownership percentage doesn't decrease too much if you raise money at a lower valuation—basically punishing you for underwhelming growth.
The phenomenon where your product becomes more valuable as more people use it—the holy grail of startup strategy because it creates defensible moats.
A carefully crafted 60-second monologue designed to convince investors that your app idea will revolutionize humanity, delivered with the energy of someone who hasn't slept in 48 hours.
A founder who prioritizes profitability and sustainable growth over hypergrowth and scale. Basically a unicorn with stripes, or what founders call themselves when they can't attract venture capital.
The vanguard or front line of a movement, army, or trend—basically the people doing cutting-edge stuff before everyone else catches on. Think of them as the cool kids who are three seasons ahead and won't shut up about it.
A space of the market that a powerful VC firm claims as theirs, and they'll kill any startup that tries to compete there. It's legal monopoly behavior with a cute name.
A deal term that prevents certain actions without investor approval. The clause that prevents your CEO from going rogue.
A legal instrument creating a right for investors to purchase equity in a future priced round at favorable terms. Y Combinator's attempt to make early-stage investing 'simple' (it's not).
The second major funding round, typically $10-50 million, aimed at scaling a product that already has demonstrated traction. Proof that your MVP was more than just a fever dream.
The amount of money a startup is seeking in a funding round. The question that determines whether you're getting a term sheet or eating ramen while applying to jobs.
The first major institutional funding round, typically $2-15 million, where professional VCs finally take your startup seriously. The moment you stop being a 'cool idea' and become a 'company with serious growth ambitions.'
Wealthy individuals who invest in early-stage startups, either because they see potential or more likely because they're bored and have disposable income.
The order in which classes of stock get paid in an exit event, determining who gets what money from the sale. The reason cap table lawyers exist and make inexplicably high hourly rates.
The sale of existing shares between investors, employees, or founders, rather than new share issuance. The legal way for early employees to cash out without an exit event.
A division of an established corporation that invests in startups, usually with the goal of finding complementary technology or market opportunities. Big companies' way of seeming innovative without actually being disruptive.
A situation where a startup with good metrics but bad unit economics keeps raising money from VCs who don't do the math. Also called 'raising on hope and a spreadsheet.'
How much revenue from existing customers you retain (and grow through upsells) versus how much you lose to churn. The metric that determines if you're actually growing.
The panic investors feel when they suspect they're about to miss a hot deal or investment opportunity. The invisible hand that closes funding rounds at 11:59 PM on Friday.
A startup that's past the early stage and trying to grow as fast as possible. It's the phase where you hire thousands of people who aren't sure what the product is.
The annualized percentage return on invested capital. How investors measure if they actually beat the S&P 500 by betting on your startup.
Starting with a narrow, focused product in a niche market, then expanding horizontally once you dominate that niche—the startup version of 'start small, think big.'
The average revenue generated per user, typically calculated monthly or annually. The easiest way to understand if your pricing actually matters.
Later-stage funding rounds (C, D, E, F, etc.) for companies approaching profitability or dramatic growth. The venture capital equivalent of 'we've lost count.'
A venture fund's multiple of return—how much capital investors have received back for every dollar they invested. The VC equivalent of 'Did we make money?'