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The startup glossary, written for founders

500+ plain-English definitions covering fundraising, finance, product, growth, and the legal terms in your investor docs. Updated regularly.

A–Z index

Every term, alphabetized. Hover to preview, click to read the full entry.

A36 terms

A/B Test

Experiment comparing two versions to measure impact.

Acceleration

Speeding up vesting upon events like acquisition or termination.

Accelerator

Time-bound program helping startups grow quickly, often ending in Demo Day.

Acceptance Criteria

Conditions that define when a feature is done.

Access Control

Managing who can access systems and data.

Accountability

Commitment to follow through on goals.

Accounts Payable

Money the company owes to vendors.

Accounts Receivable

Money owed by customers.

Activation

The moment a user experiences initial value (aha moment).

Activation Rate

Percentage of signups who reach the aha moment.

ACV

Annual Contract Value: yearly value of a customer contract.

Advisory Shares

Equity given to advisors for guidance and introductions.

Affiliate

Partner earns commission for referred customers.

Agent

An AI system that can plan, take actions, and use tools.

Agile

Iterative product development approach emphasizing flexibility and feedback.

Alumni Network

Past cohort members who continue to support and collaborate.

Angel Investor

An individual who invests personal funds in early-stage startups.

Anti-dilution

Protection that adjusts investor ownership if shares are issued later at a lower price.

API

Application Programming Interface enabling systems to communicate.

AR Aging

Aging of accounts receivable to track overdue invoices.

Architecture

High-level structure of software components and their interactions.

ARPA

Average Revenue Per Account.

ARPU

Average Revenue Per User.

ARR

Annual Recurring Revenue (also used as a key metric).

ARR

Annual Recurring Revenue.

Articles of Incorporation

Legal document filed to create a corporation.

Artificial Intelligence

Systems that perform tasks requiring human-like intelligence.

Ask

The amount you are raising and what it will achieve.

Async Work

Work done without real-time coordination, using docs and tools.

ATS

Applicant Tracking System for managing candidates.

Attribution

Identifying which channels caused conversions.

Attrition

Employee turnover over time.

Audit

Independent review of financial statements/processes.

Audit Log

Record of actions taken in a system for traceability.

Authorized Shares

Maximum number of shares a company can legally issue.

Automation

Using tools to reduce manual work.

B30 terms

B2B

Business-to-business model selling to companies.

B2C

Business-to-consumer model selling to individuals.

Backlinks

Links from other sites to yours; a key SEO signal.

Backlog

Prioritized list of product work items.

Bad Leaver

A departing person who leaves under unfavorable conditions, often losing more rights.

Balance Sheet

Snapshot of assets, liabilities, and equity.

Bankruptcy

Legal process for insolvent entities to resolve debts.

Beta

A limited release for testing with real users.

Blockchain

Distributed ledger technology enabling decentralized records and transactions.

Board

A group that governs and oversees a company, especially corporations.

Board Meeting

Formal meeting of the board to make key decisions.

Bookkeeping

Recording financial transactions.

Booster Kit

Bundle of offers/credits for startups (cloud, tools, services).

Bottom-up Sizing

Market sizing based on realistic units × price rather than broad estimates.

Boundary Setting

Defining limits to protect time and health.

Brand

The perception and identity of a company in the market.

Brand Equity

The value created by brand recognition and trust.

Brand Guidelines

Rules for using brand assets and voice.

Brand Identity

Visual and verbal elements that represent the brand.

Breach

Unauthorized access to data or systems.

Break-even

Point where revenue equals total costs.

Bridge Round

Short-term funding between major rounds to extend runway.

Buddy System

Assigning a peer to help a new hire ramp up.

Budget

Plan for expected revenue and spending.

Build-Measure-Learn

Lean Startup loop for iterating based on data.

Burn Rate

How fast a startup spends cash per month.

Burnout

Emotional and physical exhaustion from chronic stress.

Business Model Slide

Deck section explaining how you make money.

Buyback

Company repurchasing shares from a shareholder, often per agreement.

Bylaws

Rules for how a corporation is governed internally.

C50 terms

C-Corp

A corporation structure often used for venture-backed startups (especially in the US).

CAC

Customer Acquisition Cost: cost to acquire a customer.

Cap Table

A record of company ownership including shares, options, and SAFEs.

Career Ladder

Defined levels and expectations for roles.

Case Study

Detailed story showing customer problem, solution, and results.

Cash Flow

Movement of money in and out of the business.

Change Management

Controlling changes to reduce risk.

Channel

A route to reach customers (SEO, outbound, partners, etc.).

Churn

Loss of customers or revenue over a period.

Churn Rate

Percentage of customers/revenue lost over time.

CI/CD

Continuous Integration/Continuous Deployment for automated testing and releases.

Cliff

A minimum period before any equity vests (commonly 1 year).

Closing

Final steps to sign and start the customer contract.

Co-founder

A founder who starts the company together with others.

Co-founder Alignment

Shared understanding on vision, roles, and decisions.

COGS

Costs directly tied to delivering the product/service.

Cohort

A batch of startups participating together in a program.

Cohort

A group of users acquired in the same period for analysis.

Cohort Analysis

Tracking user groups over time to measure retention and behavior.

Cold Email

Unsolicited email to a prospect to start a sales conversation.

Common Stock

Standard shares usually held by founders and employees.

Community

A group of users/customers who engage around a shared topic.

Community-led Growth

Growth strategy driven by community engagement and referrals.

Compensation

Pay structure including salary, bonus, and equity.

Competitive Landscape

Overview of competitors and how you differ.

Compliance

Meeting legal and regulatory requirements.

Compliance Risk

Risk of breaking laws/regulations.

Computer Vision

AI for understanding images and video.

Confidence

Belief in ability to execute and learn.

Consent

User permission for collecting or processing data.

Content Marketing

Creating helpful content to attract and nurture customers.

Context Window

Maximum tokens a model can consider at once.

Contribution Margin

Profit after variable costs; useful for unit economics.

Control

A safeguard to prevent or detect issues.

Conversion Rate

Percentage of users who convert to a goal action (signup, paid, etc.).

Conversion Rate

Percentage of users who complete a desired action.

Convertible Note

Debt that converts into equity in a future round, often with a discount and cap.

Copywriting

Writing that persuades users to take action.

Coworking Space

Shared workspace used by startups and freelancers.

Cross-border Compliance

Meeting regulations in multiple jurisdictions.

Cross-border Payments

Receiving/sending payments across countries.

Cross-sell

Selling complementary products to existing customers.

CSAT

Customer Satisfaction Score from support or surveys.

CSM

Customer Success Manager.

CTA

Call to Action prompting the next step (e.g., Book a demo).

Culture Add

Hiring for complementary strengths that enrich culture.

Culture Fit

Match between a candidate’s values and company culture.

Customer Discovery

Learning about customer problems through research and interviews.

Customer Health Score

A metric estimating risk and adoption based on usage and signals.

Customer Success

Function focused on helping customers achieve outcomes and renew.

D33 terms

D2C

Direct-to-consumer brand selling without intermediaries.

Dashboard

A visual view of key metrics for monitoring performance.

Data Classification

Labeling data by sensitivity.

Data Minimization

Collecting only the data you truly need.

Data Processing Agreement

Contract defining data handling responsibilities under privacy laws.

Data Residency

Requirement to store data within a specific country/region.

Data Retention

How long data is stored before deletion.

Data Room

Shared folder with documents investors request during diligence.

DAU

Daily Active Users.

Deal Flow

Pipeline of investment opportunities for investors.

Decision Fatigue

Reduced quality of decisions after many choices.

DeepTech

Startups based on significant scientific/engineering advances.

Deferred Revenue

Money received for services not yet delivered (a liability).

Definition of Done

Shared checklist for when work is complete.

Definitive Agreements

Final binding legal documents for an investment or acquisition.

Delegation

Assigning responsibility to others while maintaining accountability.

Demo

Product walkthrough tailored to a prospect.

Demo Day

Event where startups pitch to investors and partners.

Design System

Reusable UI components, rules, and patterns.

Differentiation

The unique advantage that makes customers choose you over alternatives.

Dilution

Reduction in ownership percentage when new shares are issued.

Director

A board member with fiduciary duties to the company.

Discount Rate

A conversion discount given to early investors at the next round price.

Discovery Call

Initial sales call to understand needs and fit.

Dissolution

Legal termination of an entity.

Distribution

How a product gets in front of users at scale.

Distributor

Company that resells or distributes your product locally.

Documentation

Written guides, references, and knowledge base.

Double Trigger

Vesting acceleration requiring two events (e.g., acquisition + termination).

Down Round

A funding round at a lower valuation than the previous round.

DPDP Act

India’s Digital Personal Data Protection framework (commonly referenced as DPDP).

Drag-along

Clause forcing minority holders to join a sale approved by majority.

Due Diligence

Investor verification of claims: product, metrics, legal, financial.

E22 terms

Early Adopter

A customer who tries a new product before the mainstream market.

Early Exercise

Exercising unvested options early, usually subject to repurchase.

EBITDA

Earnings before interest, taxes, depreciation, and amortization.

Edge Computing

Processing data near where it’s generated instead of in a central cloud.

EIR

Entrepreneur-in-Residence: founder working with a fund/incubator to explore ideas.

Elevator Pitch

A 20–60 second summary of the startup and why it matters.

Embeddings

Numeric representations of text/images used for similarity search.

Employee Engagement

How connected and motivated employees feel.

Encryption

Transforming data so only authorized parties can read it.

Engagement

How frequently and deeply users interact with the product.

Entity Structure

How companies are organized across jurisdictions.

Entrepreneur

A person who creates and builds a business by taking risk.

Equity

Ownership in a company, usually represented by shares.

Equity Compensation

Equity granted as part of pay (options, RSUs).

ESOP

Employee Stock Option Plan—equity incentives for employees.

ESOP Plan

A formal plan defining how employee stock options are granted and managed.

Event Tracking

Recording user actions for analytics.

Execution Risk

Risk of failing to deliver due to team/process constraints.

Exercise

Converting an option into actual shares by paying the strike price.

Expansion Revenue

Revenue growth from existing customers via upgrades or add-ons.

Expense

A cost incurred to run the business.

Export Controls

Rules restricting export of certain technologies.

FAQ

Frequently asked questions

What is the Nautis startup glossary?+
A free, regularly updated reference of the terms founders, operators, and investors actually use day-to-day — fundraising, finance, product, growth, legal, and team. Each term is written in plain language with examples.
Is the glossary free to use?+
Yes. It's free for everyone, with no signup. We also offer a free public API and an embeddable widget so you can use these definitions on your own blog or product.
How is this different from Investopedia or Wikipedia?+
Our glossary is written specifically for startups. Definitions assume context: pre-seed founders, lean teams, modern fundraising instruments. Where Investopedia explains a SAFE in finance theory, we explain how it actually shows up on your cap table.
Can I suggest a missing term?+
Absolutely. Email support@getnautis.com with the term you want defined and we'll add it.