Navigate the world of startup financing with confidence

Distribution Channel is the chain of businesses or intermediaries through which a good or service passes until it reaches the end consumer.

Distribution Rights are rights granted to distribute a product, technology, or service, often critical in partnerships and licensing agreements.

Diversification is an investment strategy to reduce risk by allocating investments among various financial instruments, industries, and other categories.

Diversified Revenue Streams involve generating income from multiple sources or channels to reduce dependency on a single source and mitigate financial risk.

DIY Marketing involves implementing marketing strategies and campaigns internally without the use of external agencies or consultants, often to conserve resources.

Domain Expertise is specialized knowledge or expertise in a particular area or industry, which can be a critical asset in developing a startup`s product or service.

Domain Name Investing involves buying and holding domain names as a speculative investment, with the goal of selling them at a profit.

Donation-Based Crowdfunding is a way to raise funds for a project or venture by asking a large number of people to donate money, typically via an online platform, without offering them a return on investment.

Down Round is a financing event where investors purchase stock or securities from a company at a lower valuation than the preceding round, indicating a decrease in the company’s valuation.

Drip Campaign is a method of sending marketing information to prospects continuously over longer periods of time, typically via email, to build relationships and awareness.

Drip Funding is the provision of funding in small amounts over time, rather than as a single lump sum, often used to maintain tight control over cash flow.

Drop Shipping is a retail fulfillment method where a store doesn`t keep the products it sells in stock. Instead, when a store sells a product, it purchases the item from a third party and has it shipped directly to the customer.

Due Diligence is an investigation or audit of a potential investment or product to confirm all facts, such as reviewing financial records, before entering into an agreement.

Dynamic Cap Table is an adjustable model that reflects changes in a company`s ownership structure, including equity dilution, new funding rounds, and employee stock option pool changes.

Dynamic Equity is an equity allocation model that allows for the adjustment of ownership percentages based on contributions or other agreed-upon metrics over time.

Dynamic Pricing is a pricing strategy in which the price of a product or service is flexible, often varying based on market demand, competition, or other factors.

Dynamic Startup Ecosystem describes a vibrant community of startup entities, venture capitalists, angel investors, and support services fostering innovation and growth.

Early Adopter is an individual or business who uses a new product or technology before others, often critical for startups seeking initial market validation.

Early Bird Special refers to incentives offered to the first investors or customers, such as discounted pricing or additional benefits, to encourage early commitment.

Early exercise refers to the action of exercising (i.e., acting upon) an option before its expiration date, often to secure a profit or minimize a loss.

Early Majority refers to the segment of the market that adopts new products just before the average person, crucial for achieving significant market penetration.

Early-stage financing is funding provided to companies in the early stages of their development to support product development and initial marketing.

Earned Media refers to publicity gained through promotional efforts other than paid advertising, such as customer reviews and word-of-mouth.

Earned value management is a project management technique for measuring project performance and progress in an objective manner.

Earnings Before Interest and Taxes (EBIT) is a measure of a firm`s profitability that excludes interest and income tax expenses.

Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA) Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA) is a measure of a company`s overall financial performance and is used as an alternative to net income in some circumstances.

Earnings retention refers to the portion of a company`s profits that are reinvested in the business rather than distributed to shareholders as dividends.

Earnout is a financing agreement where the seller of a business receives future earnings based on the business`s performance.

Economic Forecasting involves predicting future economic conditions based on analysis of trends and data, essential for startups to anticipate market shifts.

Economic Moat is a sustainable competitive advantage that protects a company from its competitors.

Ecosystem in the context of startups refers to the interconnected network of companies, investors, and service providers within a particular industry or geographic area.

Elevator Networking is the practice of making professional connections in casual or brief encounters, akin to giving an elevator pitch.

Elevator Pitch is a succinct and persuasive sales pitch to spark interest in what a company does, often used by startups when talking to potential investors.

Elevator Test is a quick, concise pitch that explains a startup’s concept, market potential, and value proposition within the time span of an elevator ride.

Email List Building is the process of adding new subscribers to an email marketing list, aiming to grow the audience for promotional communications.

Email Marketing is the act of sending a commercial message, typically to a group of people, using email, as a direct marketing tactic.

Email Outreach Campaigns involve contacting potential investors, customers, or partners through targeted email messages to promote a startup’s offerings or secure funding.

Email Sequencing is the automated process of sending a series of emails to prospects or customers based on predetermined triggers or behaviors.

Employee Buyout (EBO) is a transaction where the employees of a company purchase a majority or all of the shares from the current owner or parent company.

Employee Equity Pool is a portion of a startup’s equity reserved for future employees as part of their compensation package, often used to attract and retain talent.

Employee Incentive Plan is a program designed to motivate and compensate employees beyond their regular salary, often including options, bonuses, or other equity forms.

Employee Value Proposition (EVP) is the unique set of benefits and values a startup offers to attract and retain top talent, beyond monetary compensation.

Engagement Analytics involves measuring and analyzing how users interact with a startup’s product or service, providing insights into user behavior and preferences.

Engagement Metrics are used to measure a company`s effectiveness in engaging its audience, crucial for evaluating the success of marketing strategies.

Engagement Rate is a metric used to gauge the interaction level users have with content or a product, crucial for startups to understand consumer interest and behavior.

Enterprise Agreement is a contractual arrangement between a startup and a large organization outlining the terms of product or service provision.

Enterprise Sales refers to selling products or services to large organizations through long sales cycles and complex decision-making processes.

Entity Dissolution is the formal closure of a business entity’s legal existence, including fulfilling legal and fiscal responsibilities to properly wind down the company.

Entrepreneur refers to an individual who, rather than working as an employee, runs a small business and assumes all the risks and rewards of a given business venture.

Entrepreneurial Accelerator Program is an initiative designed to support early-stage startups through mentorship, resources, and sometimes funding, to accelerate growth.