Crash Landing

Definition

When a startup's momentum suddenly stops and it dies, usually after running out of money or investors realizing the idea doesn't work. It's spectacular and tragic.

Example Usage

The startup had a real crash landing after their Series B, with the CEO resigning mid-demo.

Origin

Aviation metaphor adopted by startup culture

Fun Fact

Many crash landings happen not because the idea was bad, but because the founder was more interested in press releases than product.

Source: Startup Industry Terminology

Related Terms

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MRR

Monthly Recurring Revenue—the predictable revenue generated each month from subscription customers, the metric that makes investors weep with joy.

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Preference Shares

Special shares that get priority in liquidation, dividends, or control—essentially investor insurance against founder incompetence.

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inside round

A funding round where only existing investors participate, with no new outside investors joining. It's either a vote of confidence from believers or a sign that no one else wanted in.

🚀 Startup / VC

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carry

Short for 'carried interest'—the percentage of fund profits that goes to VCs as performance compensation, typically 20%. It's why venture capitalists drive Teslas even when most of their portfolio is worthless.

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recycle provision

A fund agreement clause that allows GPs to reinvest early returns back into new deals rather than distributing them to LPs, extending the fund's effective deployment capacity. A controversial provision that LPs love to scrutinize because it delays their returns.

🚀 Startup / VC

Intermediate

SAFE

Simple Agreement for Future Equity—a Y Combinator innovation that lets startups take money now and figure out the valuation later. 'Simple' is debatable; some lawyers call them 'complex convertible debt without the debt.'

🚀 Startup / VC

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