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Kavii SuriTop Contributor
GEEK | Content Writing Intern | Pursuing CS | Exploring ML and Data Science
Asked a question 4 years ago

What are some startup terms a beginner must know?

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Kavii SuriTop Contributor
GEEK | Content Writing Intern | Pursuing CS | Exploring ML and Data Science

Accelerator (aka Incubator)  => A center where start-ups are “incubated” through mentor-ship, and sometimes cash. They may also provide space.

Accredited Investor => According to the SEC: “A natural person with income exceeding $200,000 in each of the two most recent years or joint income with spouse exceeding $300,000 for those years and a reasonable expectation of the same income level in the current year; or A natural person who has individual net worth, or joint net worth with the person’s spouse, that exceeds $1 million at the time of the purchase, excluding the value of the primary residence of such person.”

Advertorials / Advertainment => Paid content that is meant to look and feel like a real story or blog post. More people are interested than you think, people actually enjoy the advertainments and thus are not bothered by the fact that they are being pitched.

Burn Rate  (aka Run Rate) => How fast you are blowing through your cash. It’s not unusual for a start-up to lose large sums of money for several years before breaking even, or making a profit.

Exit Strategy => How you will sell the company and make your investors money. Basically Who is going to buy you and why?

FMA or First Mover Advantage => Not every start-up is the first to market, but if you are, you want to point that out to investors. Remember that this is both a pro and con as although you have no competition, you may have to educate the investor about the concepts applied and technologies used