What is burn rate?
Burn rate is the rate at which a startup uses up its capital. A startup's burn rate is important to track because it can give insights into how quickly the company is using up its funding, how long the company will be able to sustain itself, and whether the company is on a path to profitability.
EBITDA for Dummies
EBITDA is an acronym that stands for Earnings Before Interest Taxes Depreciation and Amortization. It is an accounting measure that allows us to calculate the gross operating profit, and thus to have an indicator of the profitability that a company generates through its main productive activity.
What is a Cap Table?
A cap table is a document that lists the ownership stakes in a startup company and the associated financial rights and obligations. The table typically lists the names of the shareholders, the number of shares owned, the value of the shares, and any options or warrants that are outstanding.
What is a MVP product?
A minimum viable product (MVP) is a product with just enough features to satisfy early customers, and to provide feedback for future development. An MVP is not a minimal product, it is often much more than the minimum. The goal of an MVP is to test fundamental business hypotheses and to learn whether customers will buy a product, not to determine what the product is.
What is a pitch deck?
A pitch deck is a visual presentation that you make in preparation for meeting with an investor. It is a chance to summarize your business and your team, and to show the investor why they should invest in your business.
What is Lean Startup?
The Lean Startup is a term coined by Eric Ries in his book by the same name. It is a concept that has been around for some time, but has really taken off with the introduction of the Lean Startup Machine program that brought it to the masses.
What is a Simple agreement for future equity (SAFE)
A simple agreement for future equity (SAFE) is a contract between a startup and a potential investor. The investor agrees to invest a certain amount of money into the company in exchange for a certain percentage of equity in the company. The contract may be made as part of a later, more formal funding round, but it need not be, and can be signed before the company is incorporated.