Glossary

Business Glossary

Clear definitions for founders and operators.

Business language is full of jargon. This glossary provides clear, practical definitions of the terms you will encounter as you build, fund, and exit a growth-stage company.
Term

Enterprise Value

Enterprise value (EV) is the total value of a business, including equity, debt, and cash. It represents what a buyer wou...

Term

EBITDA

EBITDA stands for Earnings Before Interest, Taxes, Depreciation, and Amortization. It is the most widely used measure of...

Term

Customer Acquisition Cost (CAC)

Customer Acquisition Cost (CAC) is the total cost of acquiring a new customer, including marketing spend, sales compensa...

Term

Lifetime Value (LTV)

Lifetime Value (LTV) is the total revenue a business expects to generate from a single customer over the entire duration...

Term

Product-Market Fit

Product-market fit is the stage where your product satisfies a strong market demand. You know you have it when customers...

Term

Burn Rate

Burn rate is the rate at which a company spends cash, typically measured monthly. Gross burn is total monthly spending. ...

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Term

Enterprise Value

Enterprise value (EV) is the total value of a business, including equity, debt, ...

Term

EBITDA

EBITDA stands for Earnings Before Interest, Taxes, Depreciation, and Amortizatio...

Term

Customer Acquisition Cost (CAC)

Customer Acquisition Cost (CAC) is the total cost of acquiring a new customer, i...

Term

Lifetime Value (LTV)

Lifetime Value (LTV) is the total revenue a business expects to generate from a ...

Term

Product-Market Fit

Product-market fit is the stage where your product satisfies a strong market dem...

Term

Burn Rate

Burn rate is the rate at which a company spends cash, typically measured monthly...

Term

Runway

Runway is the number of months a company can continue operating at its current b...

Term

ARR & MRR

Annual Recurring Revenue (ARR) and Monthly Recurring Revenue (MRR) are the stand...

Term

Churn Rate

Churn rate is the percentage of customers or revenue lost during a specific peri...

Term

Net Revenue Retention (NRR)

Net Revenue Retention (NRR) measures how much revenue you retain from existing c...

Term

SOC 2 Compliance

SOC 2 is a security framework developed by the AICPA that defines criteria for m...

Term

Due Diligence

Due diligence is the comprehensive investigation a buyer conducts before acquiri...

Term

Letter of Intent (LOI)

A Letter of Intent (LOI) is a non-binding document that outlines the key terms o...

Term

Go-to-Market Strategy (GTM)

A go-to-market strategy is the plan for launching a product or entering a new ma...

Term

Ideal Customer Profile (ICP)

An Ideal Customer Profile (ICP) is a detailed description of the type of company...

Term

Total Addressable Market (TAM)

Total Addressable Market (TAM) is the total revenue opportunity available for a ...

Term

Cap Table

A capitalization table (cap table) is a spreadsheet that shows the equity owners...

Term

Term Sheet

A term sheet is a non-binding agreement that outlines the key terms of an invest...

Term

Valuation Multiples

Valuation multiples are ratios used to estimate the value of a business by compa...

Term

Demand Generation

Demand generation is the marketing strategy focused on creating awareness and in...

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