Inc42 Glossary

Dive into Inc42's comprehensive glossary of the Indian tech and startup economy. Your one-stop resource for all key terms, jargon, and acronyms. Whether an entrepreneur or investor, navigate India's vibrant tech landscape with confidence. Decoding Indian tech terminology is now easier than ever with Inc42.

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A
Startup Terms Beginning With 'A'

Accelerator

Accelerators provide mentorship, resources and financial support to startups.

Accredited Investors

An accredited investor is an individual or entity that satisfies specific financial criteria established by securities regulations

Acquihire

Acquihire means a company is acquired with the aim of acquiring its skilled personnel rather than its products or IP.

Add To Cart

‘Add to cart’ signifies the action of adding an item to the virtual purchasing order.

Affiliate Marketing

A form of performance-based marketing where individuals or businesses promote the products or services of companies.

Alpha & Beta Release

Alpha release is the initial software version for limited testing, while Beta is for broader testing and feedback before the final release.

Alternative Investment Fund

Alternative Investment Fund is a privately pooled investment vehicle that collects funds from investors in accordance with defined investment policy.

Angel investors

HNIs who provide initial capital to startups

Angel Network

An angel network comprises wealthy investors who pool their resources to invest in a business.

Annual Contract Value

ACV measures the average annualised revenue per subscription contract minus one-time fees.

Annual Recurring Revenue

ARR is a metric used to measure the total revenue that a SaaS company expects to generate from its subscriptions.

Anti-Dilution Protection

Anti-dilution protection in VC agreements shields earlier investors by preventing ownership dilution from new shares issued at lower prices.

API

APIs can be used to exchange critical data like order management, pricing information and customer data with other apps.

Attribution Window

Attribution window is an ad publisher’s time limit to claim credit for user clicks/impressions for app installs/purchases.

Average Order Value

A metric that quantifies the average monetary value of each customer order.

Average Revenue Per Account

ARPA measures SaaS subscription income over set periods, typically monthly or annually.

B
Startup Terms Beginning With 'B'

B2B Model

A business that sells its products or services to other businesses instead of an individual consumer.

Balance Sheet

A balance sheet shows a company’s financial health at a specific point in time, its assets, liabilities and shareholders’ equity.

Beta Testing

Beta testing lets potential users trial a new product pre-launch, vital for startups aiming a successful market entry.

Blitzscaling

Blitzscaling is a fast-growth strategy used by startups to secure a dominant market position, prioritising speed over profitability

Board Of Directors

A board of directors oversees company management, strategic decision-making and acts in the best interests of shareholders.

Bootstrapping

Bootstrapping is an approach where entrepreneurs use their own resources and rely on revenue generated by the business to grow.

Bounce Rate

Bounce rate means people come to a website but leave right away without doing much.

Brand Awareness

Brand awareness means how customers perceive, recall and recognise a brand.

Brand Equity

A special or premium value attached to a brand and its products.

Bridge Round

A bridge round is an interim funding solution for startups seeking a financial lifeline between major funding rounds.

Bubble

A bubble is a situation when asset prices soar beyond real value, often followed by a crash and financial losses.

Burn Rate

Burn rate measures how quickly a business is “burning” through its available capital to cover operational expenses.

Business Model Canvas

A business model canvas is a visual tool for analysing how an organization creates, delivers and captures value in its overall business model.

Business Plan

Business plan is a detailed document that outlines the goals, strategies, and operations of a business.

Buyout

A buyout involves acquiring a company or significant stake to gain control for strategic, managerial or financial purposes.

C
Startup Terms Beginning With 'C'

CAC Payback Period

CAC payback period measures how quickly a company recovers its customer acquisition costs to assess acquisition success

Cap Table

The capitalisation table or the “cap table,” refers to a table that provides a detailed overview of a company’s ownership structure

Capital Stack

The capital stack outlines the hierarchy of diverse funding used by a project or business, shaping its financial structure.

Carried Interest

Carried interest is a profit share accruing to investment fund managers, incentivising them to maximise returns for investors in the fund.

Cash Flow

Cash Flow means the circulation of money in and out of a business.

Cash On Delivery

COD allows customers to pay for their purchases only when they physically receive the order.

Churn Rate

A critical metric that evaluates how well a brand retains its customers.

Clawback

Clawback is a legal provision allowing a party to take back previously distributed funds, benefits, or assets in specific circumstances.

Click-Through Rate

Click-Through Rate (CTR) gauges the success and failure of a brand’s advertisement to the target audience

Cliff Vesting

An employee benefits structure that is granted after a specified service period, encouraging retention and commitment.

Cockroach Startup

A cockroach startup is resilient and thrives in tough market conditions by prioritising scalability over resource dependency.

Competitive Analysis

Competitive analysis studies competitors’ strategies to stay ahead, involving research on sales, products, SWOT, and marketing.

Content Marketing

Content marketing is the process of sharing valuable content on platforms to engage the target audience.

Contraction MRR

Contraction MRR helps SaaS companies pinpoint revenue losses due to subscription downgrades and cancellations.

Conversion Rate

A conversion rate measures successful actions of a user against total visitors

Convertible Notes

Convertible notes are a type of debt instrument commonly used by startups to raise capital during their early stages.

Corporate Venture Capital

A CVC (Corporate Venture Capital) fund refers to an investment vehicle formed by a corporation to invest in startups or other funds.

Cost Of Goods Sold

Cost of goods sold is the expense directly linked to producing or buying goods for resale, deducted from revenue to find gross profit.

Cost Per Acquisition

Cost Per Acquisition measures the marketing efforts of a business by showing how much money is spent on average for acquiring a single customer.

Coworking spaces

Coworking spaces are communal work environments where professionals from different backgrounds share a common workspace.

Cross-Selling

Cross-selling is a sales strategy where companies offer additional products/services to existing customers to increase revenue.

Crowdfunding

Crowdfunding is a funding alternative for an idea, project, or business to rais funds from a large public group.

Customer Acquisition Cost

CAC are the expenses that businesses incur in deploying customer acquisition strategies and the processes.

Customer Lifetime Value

CLTV means the total expected sales a customer will generate throughout the business relationship with a company.

Customer Lifetime Value (CLTV)

CLTV is the average amount a customer will spend during their lifetime on a brand’s products/services

Customer Onboarding In SaaS

Customer onboarding in SaaS is all about showing customer the ropes, providing them the tools they need and ensuring CX.

Customer Retention

Customer retention refers to a company’s ability to retain its existing consumers over time.

Customer Segmentation

Customer segmentation categorises SaaS company’s customers based on parameters like tech, products and business goals.

D
Startup Terms Beginning With 'D'

D2C

D2C brands leverage their own website to create strong consumer relations, control CX and ensure lasting customer retention.

Decacorn

A term used to describe a startup that has been valued at $10 Bn or more

Demo Day

Demo Day is an event for startups to pitch ideas and products to investors, seeking investment and partnerships.

Disruptive Technology

Innovations that fundamentally alter industries and markets by displacing existing products.

Distributed To Paid-In Capital

Distributed to Paid-In Capital (DPI) measures cash distributions against the initial investment in private equity or venture capital.

Down Round

A down round occurs when a startup raises new funding at a valuation lower than its previous round

Dropshipping

A form of retail wherein the seller accepts customer orders without keeping stock on hand.

Dry Powder

Dry powder in private equity is the capital within a firm’s raised funds, kept available for future investment opportunities.

Due Diligence

Due Diligence is the assessment of a company’s financial, economic, legal and fiscal aspects before carrying out a transaction.

E
Startup Terms Beginning With 'E'

Ecommerce

Ecommerce is the buying and selling of goods over the internet and involves browsing, choosing products to making payments.

Elevator Pitch

A concise overview of a startup, product or idea that can be delivered in under one minute.

Email Marketing

The practice of sending targeted emails to a group of recipients to promote products, services, events etc.

Enterprise SaaS Sales

Enterprise SaaS sales target big corporates with complex needs, multiple decision-makers and extended sales cycles while offering high-value solutions.

Equity Dilution

Equity dilution occurs when a shareholder’s ownership in a company diminishes due to the issuance of shares.

Equity Funding

In equity funding, a company sells its shares/stake in exchange for capital investment from investors.

ESOP

ESOP is a form of employee benefit plan that incentivises employees with company stocks.

Exit Strategy

An exit strategy is a key plan for divesting from a company, with specific goals and actions for ownership or asset transfer.

Expansion MRR

A metric used to measure the additional MRR generated by existing customers in a given month

F
Startup Terms Beginning With 'F'

Fair Market Value

Fair Market Value is the unbiased price at which assets are exchanged between informed, unpressured buyers and sellers in an open market.

Family Office

A Family office is an exclusive advisory firm specialising in the management of the substantial wealth of affluent families.

Flat rounds

Flat rounds are when a company gets funding at a valuation almost identical to its prior round, maintaining stable equity.

Follow-On Investment

A follow-on investment, in the context of venture capital, is an additional investment made in a startup by an existing investor.

Freemium

The freemium model offers free and premium versions to drive user acquisition for revenue optimisation.

Fulfilment Centre

A strategically located warehouse designed to manage and process the inventory of ecommerce businesses.

Fund Manager

A fund manager, also known as a portfolio manager, is accountable for making investment choices and overseeing assets in an investment fund.

G
Startup Terms Beginning With 'G'

General Partner

An individual or a group of individuals who manage a VC fund.

Gross Margin

Gross margin is the percentage of revenue a company retains after subtracting the cost of goods sold.

Gross MRR Churn Rate

Gross MRR churn rate is used by SaaS companies to estimate revenue losses from service downgrades.

Growth Hacking

Growth hacking is a specialised field of marketing that prioritises rapid growth with minimal spending, often used by startups.

Growth Stage Funding

A startup seeks growth stage funding typically after it has achieved its PMF.

H
Startup Terms Beginning With 'H'

Hockey Stick Growth

Hockey stick growth is the sudden increase in a business’s revenue or user base, representing a hockey stick-shaped growth.

Hybrid SaaS Sales

A hybrid SaaS sales model blends traditional sales with product-led growth for seamless CX and software integration as tech needs evolve.

I
Startup Terms Beginning With 'I'

Influencer Marketing

Collaboration between brands and individuals who possess significant credibility and influence within a niche.

Inventory Management

Involves necessary processes to trace inventory levels, monitor stock movements and fulfil customer orders.

IPO

An IPO is the sale of securities to the public in the stock market.

L
Startup Terms Beginning With 'L'

Last-Mile Delivery

It refers to the final leg of the logistics process, when goods at transported to the end customer.

Late Stage Funding

Late stage funding is provided to companies that have progressed beyond the early stages of development.

Lead Investor

A lead investor, typically the primary contributor in a funding round, holds substantial sway over the company’s direction and strategy.

Lean startup

Lean startup is an efficient business approach emphasising iterative product development, quick experimentation and customer feedback.

Limited Partner

LPs are entities or individuals who contribute capital to VC funds.

Liquidation

Liquidation is closing a business by selling assets to pay debts and distributing remaining funds to stakeholders due to financial insolvency.

M
Startup Terms Beginning With 'M'

M&A

M&As are strategic moves aimed at expanding a company’s presence, capturing a larger market share

Market capitalisation

Market capitalisation, also referred to as a market cap, represents the total value of a company according to the stock market’s assessment.

Market Penetration

Market penetration drives a company’s market share through customer acquisition or increased usage among existing customers.

Market Research

Market research is a process of gathering and analysing a market, including potential customers, competitors and industry trends.

Mezzanine Financing

Mezzanine financing is a hybrid funding combining debt and equity, strategically utilised by companies for diverse needs like expansion.

Micro VC Fund

Micro VC funds are specialised funds for early stage startups

Minimum Viable Product

A lean startup approach to efficiently test a product idea with minimal features for validation and feedback.

Moonshot

A bold goal, inspired by the 1969 moon landing, demanding innovative thinking and technology to address major global issues.

MVP In SaaS

A simplified software version with essential features for user feedback to validate the core product.

N
Startup Terms Beginning With 'N'

NDA

A legally enforceable agreement to maintain confidentiality of information.

O
Startup Terms Beginning With 'O'

OKRs

Goal-setting framework for businesses to set and track objectives and outcomes.

Omnichannel

The omnichannel model ensures a seamless consumer experience across multiple touchpoints for direct-to-consumer brands.

P
Startup Terms Beginning With 'P'

Patient Capital

Patient capital is a long-term investment focused on businesses or projects requiring time to mature for profitable returns.

Pitch Deck

A comprehensive document that outlines the key aspects of a startup.

Pivot

A pivot in business refers to a significant change in a company’s strategy.

Pre-Emption Right

Pre-emption rights give current shareholders the legal privilege to buy more shares before they’re offered to outside parties in a startup.

Private Equity Funds

A private equity fund is an alternative investment class wherein investors put in capital in non-listed private companies.

Pro Rata Rights

Pro rata rights or proportional rights let existing investors keep their ownership stake by investing more when a company raises funding.

Product Catalogue

A product catalogue showcases products and gives customers the necessary information to make a purchase.

Product-Market Fit

The product’s alignment with a well-defined market that has a pressing need that the product can effectively address.

Proof Of Concept

A proof of concept (POC) is essential for early stage SaaS startups to validate product ideas’ feasibility and financial viability.

Prototype

A prototype is an early, trial version of a product/service made to test and improve ideas before the final version is created.

R
Startup Terms Beginning With 'R'

Redemption rights

Redemption rights allow investors to reclaim their investment or sell shares based on agreed conditions for an exit strategy.

Renewal Rate

Renewal rate is a metric to measure the percentage of customers renewing subscriptions when their contracts end.

Return On Investment

ROI is a crucial financial metric that measures the profitability of an investment relative to its cost.

Revenue Based Financing

Companies raise capital in exchange for a portion of their revenue to grow and scale.

Rolling Fund

It allows fund managers to add new capital quarterly or yearly by auto-renewing capital commitments.

Run Rate

Run Rate predicts the company’s financials based on current trends

S
Startup Terms Beginning With 'S'

SaaS Sales Funnel

A SaaS sales funnel is a visual tool used by SaaS companies to track the process of turning potential customers into paying subscribers.

SAFE Notes

SAFE notes are startup investments with future equity conversion, avoiding early valuation complexities.

Scalability

A business’s ability to grow efficiently without overspending or compromising quality using technology.

Search Engine Marketing (SEM)

A form of digital advertising that aims to increase a website’s visibility on search engine results pages.

Search Engine Optimisation

A set of strategies and techniques aimed at improving a website’s visibility on search engine results pages.

Seed Funding

Seed funding is the startup’s first stage of investment while it is in the ideation/inception stage

Share Dilution

Share dilution occurs when a company issues more stock, reducing the ownership percentage of existing shareholders.

Shareholder agreement

Shareholder agreement is pivotal in managing the shareholder dynamics of a firm, serving as a crucial legal document for regulation.

sidecar

Sidecar is a secondary investment fund alongside a primary fund or project to offer supplementary capital, often on a per-deal basis.

Social Media Advertising

Social media advertising refers to promoting products, services, or content through paid advertisements on social media platforms.

Soft Launch

Soft launch is the limited distribution of a product/service to a small user base for evaluation and making adjustments before a wider release.

Soonicorn

A rapidly growing startup that has the potential to reach a valuation of $1 Bn.

SPAC

SPAC, aka special purpose acquisition company, is a shell trade company created to merge with a private company to make it public.

Special Purpose Entity

Special purpose entity is a separate legal entity created for specific tasks, like isolating financial risks from its parent company.

SQL

SQL indicates when a potential customer is ready to purchase its products

Startup Incubator

A startup incubator supports early stage startups through mentorship, capital & other resources.

Startup Investors

Startup investors put a certain amount of capital into a business with the expectation of return on investment

Stock Keeping Unit (SKU)

A unique alphanumeric code assigned to each distinct product or item in a company’s inventory.

Super Angel Investor

Super angel investors are affluent individuals backing early-stage startups for equity or debt by providing funding and mentorship.

Supply Chain Management

Supply chain management is the strategic orchestration of activities of a product’s journey

Sweat Equity

Sweat equity is an individual’s value in the company through hard work and time, not money

Syndicate

A syndicate is an SPV where multiple investors contribute money to make various investments.

T
Startup Terms Beginning With 'T'

Tag-Along Rights

Tag-along rights grant minority shareholders the option to sell their shares alongside majority shareholders during a third-party sale.

TAM

TAM is the potential revenue from a market’s full customer base and guides companies to allocate resources for launching new products.

Target Market

Target market refers to a specific group of potential customers that a business aims to reach with its products or marketing efforts.

Term Sheet

A non-binding document that outlines the key terms and conditions of an investment or exit.

Traction

Traction gauges a startup’s progress through customer interest, engagement, demand and revenue.

U
Startup Terms Beginning With 'U'

UI, UX

UI, UX represent the combined effort of designing the visual and functional aspects of a digital product to create an engaging experience.

Unicorn

Privately held companies or startups that are valued $1 Bn or above.

Upselling

In SaaS, upselling encourages current customers to purchase upgraded products with premium features to drive growth.

User Acquisition

User acquisition refers to the process of gaining new users or customers for a product, service, or platform.

User Acquisition

User acquisition is the process of attracting, converting and retaining customers for business growth.

User generated Content

User generated content refers to any type of content – text, images, videos, reviews – that is created by users or consumers of a brand.

V
Startup Terms Beginning With 'V'

Valuation

Valuation refers to the overall worth of a company

Value Proposition

A compelling statement that outlines the unique benefits and value a product, service, or offer provides to customers.

Venture Capital (VC)

Venture capital (VC) funding is a financing option for startups to raise money from investors in exchange for an equity share

Venture Debt Funding

Venture debt funding is for startups and early stage ventures that have already raised equity capital from venture capital investors.

Vesting

Vesting is when startup founders and employees earn assets like stock options over time.

W
Startup Terms Beginning With 'W'

Washout Round

A washout round in venture capital slashes existing investors’ ownership, especially common shareholders’, in startups during funding rounds.

Working Capital

Working capital is a company’s operational cash for daily functions like bill payments, supply purchases and ensuring smooth operations.

Write Off

Reducing the value of an asset, while debiting the expense account.

X
Startup Terms Beginning With 'X'

XaaS

XaaS refers to a cloud computing model where various services, apps and resources are delivered on a subscription basis.

Z
Startup Terms Beginning With 'Z'

Zombiecorn

Zombiecorn means a startup with a valuation of over $1 Bn that struggles to achieve sustainable growth or profitability.

AStartup Terms Beginning With 'A'

Accelerator

Accredited Investors

Acquihire

Add To Cart

Affiliate Marketing

Alpha & Beta Release

Alternative Investment Fund

Angel investors

Angel Network

Annual Contract Value

Annual Recurring Revenue

Anti-Dilution Protection

API

Attribution Window

Average Order Value

Average Revenue Per Account

BStartup Terms Beginning With 'B'

B2B Model

Balance Sheet

Beta Testing

Blitzscaling

Board Of Directors

Bootstrapping

Bounce Rate

Brand Awareness

Brand Equity

Bridge Round

Bubble

Burn Rate

Business Model Canvas

Business Plan

Buyout

CStartup Terms Beginning With 'C'

CAC Payback Period

Cap Table

Capital Stack

Carried Interest

Cash Flow

Cash On Delivery

Churn Rate

Clawback

Click-Through Rate

Cliff Vesting

Cockroach Startup

Competitive Analysis

Content Marketing

Contraction MRR

Conversion Rate

Convertible Notes

Corporate Venture Capital

Cost Of Goods Sold

Cost Per Acquisition

Coworking spaces

Cross-Selling

Crowdfunding

Customer Acquisition Cost

Customer Lifetime Value

Customer Lifetime Value (CLTV)

Customer Onboarding In SaaS

Customer Retention

Customer Segmentation

DStartup Terms Beginning With 'D'

D2C

Decacorn

Demo Day

Disruptive Technology

Distributed To Paid-In Capital

Down Round

Dropshipping

Dry Powder

Due Diligence

EStartup Terms Beginning With 'E'

Ecommerce

Elevator Pitch

Email Marketing

Enterprise SaaS Sales

Equity Dilution

Equity Funding

ESOP

A
Startup Terms Beginning With 'A'

B
Startup Terms Beginning With 'B'

C
Startup Terms Beginning With 'C'

D
Startup Terms Beginning With 'D'

E
Startup Terms Beginning With 'E'

F
Startup Terms Beginning With 'F'

G
Startup Terms Beginning With 'G'

H
Startup Terms Beginning With 'H'

I
Startup Terms Beginning With 'I'

L
Startup Terms Beginning With 'L'

M
Startup Terms Beginning With 'M'

N
Startup Terms Beginning With 'N'

O
Startup Terms Beginning With 'O'

P
Startup Terms Beginning With 'P'

R
Startup Terms Beginning With 'R'

S
Startup Terms Beginning With 'S'