Startup Fundraising Glossary

Navigate the world of startup financing with confidence

Explore a glossary of essential terms in startups, startup fundraising, bootstrapping and entrepreneurship. Decode the terminology and jargon with ease.

  • Market Penetration

    Market Penetration is the extent to which a product is recognized and bought by customers in a particular market.

  • Market Positioning

    Market Positioning is the process of establishing the image or identity of a brand or product so that consumers perceive it in a certain way.

  • Market Readiness

    Market Readiness is the state of being fully prepared to enter a specific market, having met all necessary conditions and requirements.

  • Market Risk

    Market Risk is the risk of losses in positions arising from movements in market prices.

  • Market Saturation

    Market Saturation is a situation in which a product has become so widespread within a market that the potential for growth is diminished.

  • Market Segmentation

    Market Segmentation is the process of dividing a target market into smaller, more defined categories.

  • Market Share

    Market Share is the portion of a market controlled by a particular company or product.

  • Market Validation

    Market Validation is the process of determining whether your product is of interest to a given target market.

  • Marketing Automation

    Marketing Automation is the use of software and technology to aid marketing processes and campaigns.

  • Marketing Collateral

    Marketing Collateral consists of materials used to support the sales of a product or service.

  • Marketing Mix

    The Marketing Mix is the set of actions, or tactics, that a company uses to promote its brand or product in the market.

  • Marketing Strategy

    A Marketing Strategy is an organization`s strategy that combines all of its marketing goals into one comprehensive plan.

  • Matched Funding

    Matched Funding is funding where the amount of investment or grant is matched by another source, doubling the funding available.

  • Maturity

    Maturity is the final payment date of a loan or other financial instrument, at which point the principal (and all remaining interest) is due to be paid.

  • Maturity Date

    The Maturity Date is the date on which a debt becomes due for payment.

  • Maximize Valuation

    To Maximize Valuation is to employ strategies by a company to increase its worth or value in the eyes of investors and the market.

  • Media Exposure

    Media Exposure is the amount of public attention that a company or product receives through various media channels.

  • Membership Economy

    The Membership Economy is a business model where a company offers ongoing, subscription-based access to its product or service.

  • Membership Model

    The Membership Model is a business model where customers pay a subscription fee to access the services or products offered.

  • Mentor Capital

    Mentor Capital refers to funding provided by an investor who also offers guidance and advice to the startup founder.

  • Merger and Acquisition (M&A)

    Merger and Acquisition (M&A) is the process by which companies consolidate through various types of financial transactions, including mergers, acquisitions, consolidations, tender offers, purchase of assets, and management acquisitions.

  • Micro Equity

    Micro Equity refers to small equity investments typically made in startup or early-stage businesses.

  • Micro-VC

    A Micro-VC is a type of venture capital fund typically under $50 million that invests in early-stage startups.

  • Microloan

    A Microloan is a small, short-term loan for small businesses or startups, typically offered by microfinance institutions.

  • Microventure

    A Microventure is a type of venture capital investment typically denoting smaller amounts of capital provided to early-stage, high-potential, growth startup companies.

  • Milestone Funding

    Milestone Funding is a funding arrangement where funds are released to the startup as it achieves specific, pre-agreed milestones.

  • Milestone Payment

    A Milestone Payment is a payment system that pays out upon completion of specific milestones within a project`s development.

  • Milestone-Based Investing

    Milestone-Based Investing involves investing funds in a startup as it reaches predefined milestones or achievements.

  • Minimum Investment

    The Minimum Investment is the smallest amount of money that an investor can contribute to a fund or an investment opportunity.

  • Minimum Viable Product (MVP)

    The Minimum Viable Product (MVP) is the most pared-down version of a product that can still be released to market, having just enough features to satisfy early customers and provide feedback for future product development.

  • Mission Statement

    A Mission Statement is a formal summary of the aims and values of a company, organization, or individual.

  • Moat

    A Moat is a business`s ability to maintain competitive advantages over its competitors in order to protect its market share and profitability.

  • Mobile Optimization

    Mobile Optimization is the process of adjusting your website content to ensure that visitors accessing the site from mobile devices have an experience optimized for the device.

  • Mobile Payment

    Mobile Payment refers to payment services operated under financial regulation and performed from or via a mobile device.

  • Mobile-First Strategy

    A Mobile-First Strategy involves designing an online service or product for mobile devices before making a desktop version.

  • Monetization

    Monetization is the process of converting something into money, typically by generating revenue from the asset.

  • Monthly Active Users (MAU)

    Monthly Active Users (MAU) is the number of unique users who engage with a site or product within a 30-day period.

  • Monthly Recurring Revenue (MRR)

    Monthly Recurring Revenue (MRR) is the amount of revenue a subscription-based business receives on a monthly basis.

  • Multi-Channel Marketing

    Multi-Channel Marketing involves marketing strategies that engage customers across multiple platforms or channels.

  • Multi-stage Investment

    Multi-stage Investment involves investments made by venture capitalists in several rounds, as the company meets previously agreed upon milestones.

  • Navigational Capital

    Navigational Capital refers to strategic guidance and resources provided by investors to help startups navigate through challenges and growth phases.

  • Navigational Tools for Startups

    Navigational Tools for Startups are resources and applications designed to guide startups through the complexities of the business landscape.

  • NDA (Non-Disclosure Agreement)

    An NDA (Non-Disclosure Agreement) is a legal contract establishing a confidential relationship between two parties, to protect any type of confidential information shared.

  • Negotiated Investment

    A Negotiated Investment is an investment deal where terms are discussed and agreed upon by both the investor and the company, rather than fixed upfront.

  • Net Income

    Net Income is the total profit of a company after all expenses and taxes have been subtracted from total revenue.

  • Net Investment

    Net Investment is the total amount of money invested in a business venture after deducting any disinvestments.

  • Net Profit Margin

    The Net Profit Margin is a profitability ratio calculated as net income divided by revenue, indicating how much of each dollar earned is profit.

  • Net Revenue

    Net Revenue is the amount of sales generated by a company after the deduction of returns, allowances for damaged or missing goods, and any discounts allowed.

  • Net Working Capital

    Net Working Capital is a measure of a company`s liquidity, operational efficiency, and short-term financial health, calculated as current assets minus current liabilities.

  • New Entrant

    A New Entrant is a company that has recently entered a market or industry, typically characterized by a fresh approach or innovative solutions.