Disrupting disruption with disruptive disruptions since 2010.
Money given to startups by firms who expect most of their investments to fail spectacularly, banking on one unicorn to pay for all the donkeys. VCs will fund almost anything if you put AI in the pitch deck and promise to disrupt something.
A Silicon Valley term for marketing on a budget, dressed up to sound like you're breaking into a mainframe. In practice, it usually means spamming people on LinkedIn and calling it a strategy.
The maximum valuation at which a convertible note or SAFE will convert to equity—a safety net for early investors betting on you when you were nobody. The lower the cap, the more expensive your desperation was.
A venture capitalist or firm that sporadically invests in startups outside their expertise or thesis, usually during hype cycles. They show up for the party, leave before cleanup, and wonder why founders don't return their calls.
A startup that a VC firm has invested in, now living in their collection like a Pokémon card. Each firm has dozens, knowing most will fail but hoping one becomes a legendary holographic Charizard.
A mechanical advantage device that pivots on a fulcrum to multiply force, or in startup parlance, anything you can use to do more with less. Every MBA in Silicon Valley thinks they've found a "lever" to pull, usually right before asking for $5M in seed funding. Physics teachers hate how loosely VCs use this term, but hey, at least someone's paying attention to simple machines.
The reduction in ownership percentage when additional shares are issued, especially painful in a down round where new shares are issued at a lower price. Watching your equity stake shrink while your company's value simultaneously decreases.
Moving to build or sell products at higher layers of technology infrastructure, typically where margins are better and you're further from commoditized infrastructure. The opposite of down-stack, and usually more profitable.
A product development organization obsessed with shipping features rather than solving customer problems or delivering value. The startup equivalent of a hamster wheel—lots of motion, no actual progress.
An IRS-mandated appraisal of your company's common stock price, required so employees don't accidentally commit tax fraud when exercising options. It's always mysteriously lower than what you tell investors your company is worth.
A venture fund typically under $50M that invests small checks in very early-stage startups. They offer founder-friendly terms and actual attention, mainly because they can't afford fancy offices or ignore their investments.
Late-stage debt or hybrid securities used to bridge the gap between venture rounds and an exit. It's called mezzanine because it sits between the ground floor (equity) and penthouse (IPO).
The VC expectation that founders will make introductions, provide advice, and help other portfolio companies in exchange for investment and support. Networking as a contractual obligation.
When a VC aggressively increases their investment in a portfolio company across multiple rounds, betting their career on being right. Conviction investing taken to its logical extreme.
Financial projections showing what a company's metrics would look like under hypothetical conditions or future scenarios. Latin for 'as a matter of form,' startup-ese for 'this is the fantasy we're selling investors.'
Customer Acquisition Cost—how much you spend in sales and marketing to land one customer. VCs compare this to lifetime value to determine if your business model is actually viable or just an expensive hobby.
The moment when something new is officially unleashed upon the world, whether it's a product, company, or ship sliding into water. In business and tech, launches involve coordinated marketing campaigns, press releases, and the collective hope that people will actually care. It's the corporate equivalent of a grand opening, complete with champagne (or energy drinks, depending on the industry).
The contractual right of existing investors to lead or participate in the next funding round before the company can seek outside investors. It's a first-look deal built into your cap table.
A sales or fundraising strategy focused exclusively on landing enormous clients or investors rather than building up smaller ones. It's high-risk, high-reward betting where you either feast or starve.
A clause ensuring investors get their money back first when the company sells or dies—like having a reserved lifeboat while founders and employees fight over pool floaties. Can be 1x (reasonable) or 3x (predatory).
The delicate art of figuring out how to extract money from something that users currently enjoy for free, typically resulting in a barrage of ads, paywalls, or premium subscriptions. This verb represents the moment when platforms transition from "community-building" to "shareholder-pleasing," often coinciding with users complaining that everything good gets ruined. Monetization strategies range from subtle to obnoxious, but they all share the goal of turning engagement into revenue.
The sacred privilege granted to investors allowing them to maintain their ownership percentage in future funding rounds by ponying up more cash. It's like a VIP pass that lets you keep throwing money at a company before it becomes wildly successful or spectacularly flames out.
When investors, customers, or acquirers proactively reach out to a startup rather than being solicited. It's the entrepreneurial equivalent of being asked to the dance instead of doing the asking.
A company that owns and controls every layer of its product or service delivery, from manufacturing to customer experience, rather than relying on existing infrastructure or platforms. It's vertical integration for the startup age.