Below, we've put together a glossary of many startup terms to help you better understand the startup ecosystem. Some of these are specific to venture studios, but not all of them. The glossary will get updated as we add new terms or edit key definitions.

Startup Creation and Development

1. Venture Studio: An organization that creates new startups from scratch, providing ideas, teams, and resources.
2. Startup Studio: Synonymous with venture studio, focuses on creating multiple startups simultaneously with comprehensive support.
3. Minimum Viable Product (MVP): The simplest version of a product that can be released to test a business idea and gather user feedback.
4. Product-Market Fit: When a product meets the needs of a specific market and there is strong demand for it.
5. Clickable Prototype: An interactive model of a product that simulates the user interface and user experience for testing and feedback.
6. Lean Startup: An approach to developing businesses that focuses on building an MVP, testing assumptions, and iterating based on customer feedback.
7. Jobs to Be Done (JTBD): The Jobs to Be Done framework is a concept that focuses on understanding the specific tasks or "jobs" that customers are trying to accomplish when they use a product or service. It emphasizes identifying the underlying needs and motivations of customers to create solutions that better meet those needs. The JTBD framework helps businesses develop products that address real customer problems, leading to higher satisfaction and success.
8. Design Thinking: Design thinking is a problem-solving approach that involves understanding users, challenging assumptions, redefining problems, and creating innovative solutions to prototype and test. It consists of five stages: Empathize, Define, Ideate, Prototype, and Test. This iterative process encourages teams to focus on user-centered solutions and encourages creativity and collaboration to address complex challenges effectively.
9. Desirability - Viability - Feasibility: The Desirability-Viability-Feasibility (DVF) framework is a method used to evaluate the potential success of a product or service. It considers three key factors:
10. Desirability: Determines whether the solution meets the needs and desires of the target users. It focuses on understanding customer problems and preferences to ensure the product is appealing.
11. Viability: Assesses whether the solution is economically sustainable. It involves evaluating the business model, cost structure, revenue streams, and overall financial feasibility to ensure the product can generate profit.
12. Feasibility: Examines whether the solution is technically possible and can be realistically implemented. It includes evaluating the available technology, resources, skills, and infrastructure needed to develop and deliver the product.
13. Pivot: A significant change in a startup's business model, product, or strategy based on feedback and market conditions.

Funding and Financials

1. Venture Capital (VC): Private equity financing provided by investors to startups and small businesses with high growth potential in exchange for equity.
2. Startup Accelerators: Fixed-term programs that provide startups with mentorship, resources, and funding to accelerate their growth.
3. Angel Investor: An individual who provides capital to startups in exchange for equity, often in the early stages.
4. Bootstrapping: Starting and growing a business using personal savings and revenue generated by the business, rather than seeking external funding.
5. Burn Rate: The rate at which a startup spends its cash reserves.
6. Cap Table: A spreadsheet that outlines the ownership structure of a company, including equity held by founders, investors, and employees.
7. Customer Acquisition Cost (CAC): The total cost of acquiring a new customer, including marketing, sales, and other related expenses.
8. Seed Funding: The initial capital raised by a startup to develop its product and business model, typically from angel investors, family, friends, and seed venture capital firms.
9. Series A, B, C Funding: Successive rounds of funding that a startup raises as it grows, each serving different growth stages.
10. Term Sheet: A non-binding agreement that outlines the key terms and conditions of an investment.
11. Valuation: The process of determining the worth of a company.
12. Venture Debt: A type of financing provided to startups that have already raised equity funding, allowing access to capital without diluting equity.
13. Exit Strategy: A plan for how founders and investors will realize a return on their investment, such as IPOs, mergers, and acquisitions.
14. Runway: The amount of time a startup can continue to operate before running out of cash, calculated based on burn rate and cash reserves.
15. Unicorn: A privately-held startup company valued at over $1 billion.

Operations and Management

1. Product Management: The process of overseeing the development, launch, and continuous improvement of a product.
2. Go-to-Market Strategy: A plan outlining how a company will launch a product and reach its target customers, including marketing, sales, distribution, and pricing tactics.
3. Incubator: A program or organization that supports early-stage startups with resources, mentorship, and office space.
4. Ecosystem: The network of entrepreneurs, investors, mentors, accelerators, incubators, and other entities that support the growth of startups.
5. Traction: The measurable progress and growth of a startup, such as user adoption, revenue, or market share.
6. Vesting: The process by which employees earn the right to own shares or stock options over time, used as an incentive to retain key talent.

Product and User Experience

1. User Experience (UX): Encompasses all aspects of a user's interaction with a product or service, focusing on creating products that are easy to use and provide a positive experience.
2. User Interface (UI): Refers to the visual elements and design of a product that users interact with, including buttons, menus, icons, and overall layout.
3. Value Proposition: A statement that explains how a product or service solves a problem, meets a need, or offers benefits to customers, and is a key element of a startup's marketing strategy.

Metrics and Performance

1. Churn Rate: The percentage of customers who stop using a product or service over a given period, important for assessing customer retention.
2. Customer Acquisition Cost (CAC): The total cost of acquiring a new customer, including marketing, sales, and other related expenses.
3. Burn Rate: The rate at which a startup spends its cash reserves.
4. Runway: The amount of time a startup can continue to operate before running out of cash, calculated based on burn rate and cash reserves.
5. Traction: The measurable progress and growth of a startup, such as user adoption, revenue, or market share.

Roles and Relationships

1. Angel Investor: An individual who provides capital to startups in exchange for equity, often in the early stages.
2. Venture Partner: An individual who works with a venture capital firm to source deals, provide expertise, and support portfolio companies.
3. Mentorship: Guidance and advice provided by experienced entrepreneurs or industry experts to help startups grow.

Business Models and Strategies

1. Freemium: A business model where a company offers a basic version of its product for free while charging for premium features and services.
2. Lean Startup: An approach to developing businesses that focuses on building an MVP, testing assumptions, and iterating based on customer feedback.
3. Pivot: A significant change in a startup's business model, product, or strategy based on feedback and market conditions.
4. Vertical: A specific industry or market segment that a startup targets with its product or service, such as healthcare, fintech, or edtech.