Startup Lingo Unpacked: 11 Must Know Terminology For Entrepreneurs

11 Startup Terminology Explained: The world of startups has certain terminology that might not be familiar to everyone. So, here are some terms you might find helpful to know.

• AcceleratorAccelerator is a program designed to help startups in their early stages grow rapidly by providing mentorship, resources, and sometimes funding over a short period, usually a few months.
• Angel Investor- An individual who provides financial help to startups, mainly in the early stages of development is referred to as Angel Investors. They invest their own money in exchange for equity ownership or convertible debt in the startup.
• Acquihired- It is a situation in which a larger company acquires a smaller company primarily to gain access to its talented team rather than its products or services.
• Bootstrap- Bootstrapping refers to the process of starting and growing a company with external funding or resources. They use their own savings, revenue generated by the business, or loans from friends and family to fund their operations and growth.
• Burn Rate- It is a rate at which a company spends its available capital within a specific period, usually monthly or quarterly, to cover operating expenses before generating positive cash flow.
• Go Public/IPO- It is the process by which a private company offers its shares to the public for the first time, thereby becoming a publicly traded company. Through IPO a company can raise equity capital from the public investment.
• MVP(Minimum Viable Product)- MVP refers to a development technology. In this, the product is introduced to the market with its basic feature but it is good enough to grab the attention of the consumers or the general public. It can help the startup to test its ideas, check the product demand, and use the feedback from the consumer and general public before investing its resources in the full development of the product.
• Seed Round- Seed round refers to the initial stage of fundraising for a startup, where it raises capital from angel investors, venture capital firms, or other early-stage investors to support product development, market research, and initial operations. Seed rounds typically occur after the founders have developed a prototype or MVP and are seeking funding to validate their business model and scale their operations.
• Solopreneur- A solopreneur is an entrepreneur who begins and runs a business by themselves, without any co-founders or employees. They are responsible for handling all aspects of their business, from product development and marketing to customer service and administration.
• Unicorn- A terminology used in the business world for startup companies that have reached a valuation of over $1 billion. As of  2024, India is home to 113 unicorns with a total valuation of $1 billion in funding to date and is valued at around $350 billion.
• Valuation- The monetary value of a startup or company which is based on various factors such as its assets, revenue, growth potential, market position, and comparable transactions. Valuation is a very important process for investors, founders, and stakeholders to understand the worth of a company and negotiate equity stakes, investments, or acquisitions.

Read More: How Valuation Is Calculated on Shark Tank ?