📚 Glossary of Terms

A Pitch Deck is a brief presentation (typically 10–15 slides) used to present your startup idea to investors. It covers the problem you solve, your solution, the market, the business model, the team and your financials.

A Business Plan is a detailed document describing the strategy, objectives and operating model of a business. It includes market analysis, financial projections, marketing strategy and an operational plan. It is more extensive than a Pitch Deck and is used for internal planning and external funding.

An Elevator Pitch is a very short (30–60 second) presentation of your business idea. It gets its name from the idea that you should be able to deliver it in the time it takes to ride an elevator. It should be compelling, clear and leave the listener wanting to know more.

The Business Model Canvas is a strategic management tool that uses a 9-block template to visualise and develop business models. The 9 blocks are: Customer Segments, Value Propositions, Channels, Customer Relationships, Revenue Streams, Key Resources, Key Activities, Key Partnerships and Cost Structure.

TAM (Total Addressable Market): The total size of the market globally if you captured 100% market share.

SAM (Serviceable Available Market): The portion of the TAM you can serve with your product/service (e.g. geographical restrictions).

SOM (Serviceable Obtainable Market): The realistic market share you can capture in the short term (typically 3–5 years).

A marketing narrative is the coherent story you tell about your brand, your product and your mission. It's not just the features of the product, but the emotional connection you create with your audience. A strong narrative explains why your company exists, what problem it solves and how it improves customers' lives.

The Value Proposition is the unique value your product or service offers to your customers. It answers the question "Why should a customer choose you over the competition?" It must be clear, specific and communicate benefits, not just features.

A Go-to-Market (GTM) Strategy is the action plan for how you will bring your product to market and sell it to customers. It includes target customer segments, positioning, pricing, sales channels and marketing tactics.

Product-Market Fit means you have found the right market for your product and customers not only buy it, but love it and recommend it to others. It is the point where demand is so strong that you need to work to keep up with growth, not to create it.

KPIs are measurable indicators that show how effectively your company is achieving its goals. They are the "vital signs" of your business and should be SMART (Specific, Measurable, Achievable, Relevant, Time-bound).

Traction is tangible proof that your product has demand in the market. It shows momentum and growth through specific metrics such as users, sales, partnerships or engagement. It is critical for attracting investors because it demonstrates that your idea works in the real world.

CAC is the average cost to acquire a new customer. It is calculated by dividing total marketing and sales expenses by the number of new customers acquired in the same period. It is critical that CAC is significantly lower than the Customer Lifetime Value (LTV).

Lifetime Value is the total revenue you expect to earn from a customer over the duration of your relationship with them. It is calculated by multiplying the Average Revenue Per User (ARPU) by the Average Customer Lifetime.

Unit Economics measures the profit or loss generated by a single "unit" of your business (e.g. one customer, one order, one ride). If unit economics are positive, it means every new unit generates profit and the business can scale profitably.

Burn Rate is the amount your startup spends each month. There is Gross Burn Rate (total monthly expenses) and Net Burn Rate (expenses minus revenue). It is critical for calculating how much "runway" you have.

Runway is how long your startup can survive with its existing funds, given the current burn rate. It is calculated as: Cash on Hand ÷ Monthly Burn Rate. You typically need at least 12–18 months of runway.

Startup Valuation is the estimated value of your company. For early-stage startups, methods such as the Berkus Method, Scorecard Method or VC Method are used. For more mature companies, DCF (Discounted Cash Flow) or comparable company analysis are used.

Bootstrapping means funding your startup with your own money or the revenue you generate, without external investment. It gives you greater control but limits your growth rate.

Seed Funding is the first formal capital raise. It typically comes from angel investors, seed funds or accelerators. The money is used to prove the concept, build an MVP and gather initial traction signals.

Series A, B and C are successive funding rounds as the startup grows:

Series A: €2M–€15M — Product-market fit and scaling
Series B: €10M–€50M — Market expansion and team building
Series C+: €50M+ — Aggressive growth, M&A, internationalisation

Equity is the percentage of ownership in the company. When you take on investment, you "sell" equity to investors. The equity split between founders, investors and employees is critical for incentives and control of the company.

A Term Sheet is a non-binding document that outlines the terms and conditions of an investment. It includes valuation, equity ownership, liquidation preferences, board composition and other investor rights.

Due Diligence is the process by which investors thoroughly investigate your company before investing. It includes financial, legal, technical and commercial due diligence to verify your claims and identify risks.

A Cap Table is a table showing who owns what percentage of the company. It includes founders, investors, employees with stock options, and shows how ownership will change in various scenarios (investments, exits, option exercises).

An MVP is the simplest version of your product that can be delivered to customers and validate your core assumptions. It has only the essential features needed to solve the core problem. The goal is to learn quickly from real users at minimum cost.

Scalability is the ability of your business to grow revenue much faster than costs. A scalable business can serve 10× more customers without needing 10× more resources. SaaS and marketplaces are highly scalable, while consulting services are less so.

A Pivot is a strategic change in the business model or product based on feedback and data showing that the initial hypothesis is not working. It is not failure — it is intelligent adaptation.

An Exit Strategy is the plan for how founders and investors will "exit" the company and liquidate their investment. The most common ways are IPO (Initial Public Offering) or M&A (Mergers & Acquisitions).

TRL is a scale from 1 to 9 that measures how mature a technology is. It is mainly used for tech startups and R&D projects. TRL 1 is basic principles, TRL 9 is a proven system in the real world.

Branding is the process of creating a unique identity for your company that differentiates it from the competition. It includes the logo, colours, messaging, tone of voice and all customer touchpoints. A strong brand builds trust and recognition.

Market Research is the systematic collection and analysis of information about the market, customers and competition. It includes primary research (surveys, interviews) and secondary research (industry reports, data analysis).

Competitor Analysis is the process of identifying and evaluating your competitors. You analyse their strengths and weaknesses, strategies, products, pricing and market position. This helps you find your competitive advantage.