Definition

To abandon ship faster than a rat on the Titanic. In startup parlance, when a feature, product, or entire business model gets the axe because it's hemorrhaging money or nobody wants it. No ceremony, no fanfare—just gone.

Example Usage

We're ditching the mobile app; turns out nobody actually needed it.

Source: Common startup and business jargon

Related Terms

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fund velocity

The speed at which a venture fund moves through its investment cycle, from raising capital to deploying it to returning capital to LPs. Faster isn't always better—ask anyone who inhaled their food and got heartburn.

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carve-out

Reserved portion of an acquisition's proceeds specifically allocated to employees or specific shareholders, ensuring they benefit even if the waterfall would otherwise drown them. Exit sharing mandated by negotiation or generosity.

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drag-along rights

A contractual provision that lets majority shareholders force minority investors to join in selling the company, whether they like it or not. Democracy dies in cap tables.

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liquidation event

A corporate action where shareholders finally get to convert their paper wealth into actual money—or discover their shares are worthless after preferences. It's payday or apocalypse, with no middle ground.

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structured round

A funding round with complex terms beyond simple equity purchase—such as multiple share classes, ratchets, or unusual liquidation preferences. It's what happens when lawyers earn their retainers.

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anti-dilution provisions

Protective clauses that let early investors maintain their ownership percentage when future rounds price lower, punishing founders for failing to maintain perpetual hockey stick growth. Comes in weighted-average and full-ratchet flavors of pain.

🚀 Startup / VC

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See “ditch” in Corporate Speak, Gen-Z Slang, Pirate Speak, and more.

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