Disrupting disruption with disruptive disruptions since 2010.
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.
To engage in a battle of wills, skills, or resources against rivals for supremacy, positioning, or bragging rights. The corporate version of 'may the best person win' minus the actual physical combat.
The process of determining whether you've achieved product-market fit—usually involving delusional founders, skeptical board members, and contradictory metrics.
Distributed to Paid-In Capital—the ratio showing how much cash a VC fund has returned to investors relative to what was invested, the only metric VCs care about more than founders' happiness.
The phenomenon where your product becomes more valuable as more people use it—the holy grail of startup strategy because it creates defensible moats.
The practice of startups claiming metrics that are wildly inflated—counting beta users as paying customers, or DAU as monthly recurring. It's lying, but with venture capital.
The average revenue generated per user, typically calculated monthly or annually. The easiest way to understand if your pricing actually matters.
Additional revenue from existing customers (upsells, cross-sells, increased usage), the metric investors worship because it supposedly indicates product value and customer satisfaction.
Taking investor money in tranches rather than waiting for a formal funding round close, a practice that sounds efficient but often indicates the fundraising process isn't actually complete.
Platforms where employees and early shareholders can sell restricted private stock before IPO, giving insiders a chance to diversify while theoretically validating company valuation.
The right for existing investors to maintain their ownership percentage by investing in future rounds. It's investor speak for 'we get first dibs on new money.'
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.'
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?'
A deal term that prevents certain actions without investor approval. The clause that prevents your CEO from going rogue.
Raising capital because competitors are raising, creating a false sense of urgency and resulting in overvalued rounds where founders convince themselves they're winning when they're actually losing market share.
The date when an employee's stock vesting accelerates, usually one year after they're granted options, when they finally own some shares (until they leave and lose the rest).
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 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 person working inside a VC firm, usually a former founder, between startup gigs. The VC equivalent of being on a really well-paid bench.
The amount of money a VC firm typically invests in a single startup. Larger firms write bigger checks, which shapes their investment thesis.
The portion of the TAM that you can realistically capture with your current product and go-to-market strategy. It's your TAM divided by 'actually achievable' and 'not pure fantasy.'
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 unofficial group of founders and investors who've experienced a billion-dollar valuation or exit. It's exclusive, pretentious, and they'll definitely mention it.
How you get your product to customers—direct sales, self-serve, partnerships, affiliate networks, etc. Often the secret to success that founders ignore.