Business Glossary
A comprehensive reference of business, startup, and technology terms used throughout the We Live to Build podcast.
Finance & Investing
Accrual Accounting
Accounting method that records revenues and expenses when they're earned or incurred, regardless of when cash changes hands — required by GAAP and crucial for SaaS valuations.
Asset-Based Lending (ABL)
Loans secured by company assets like accounts receivable, inventory, or equipment — commonly used in acquisitions and working capital financing.
Bitcoin ETF
An exchange-traded fund that tracks Bitcoin's price, letting investors gain Bitcoin exposure through a traditional brokerage account without holding the cryptocurrency directly.
CAC (Customer Acquisition Cost)
The average total cost to acquire one new paying customer, including all marketing and sales expenses. Compare to LTV to measure business health.
CAGR (Compound Annual Growth Rate)
The smoothed annual growth rate over multiple years, calculated as if growth was steady — useful for comparing companies with different growth patterns.
Carried Interest
Share of investment profits paid to fund managers as compensation — typically 20% of gains above a hurdle rate, creating alignment with investor returns.
Cash Flow
The movement of money in and out of a business over time — distinct from profit, as you can be profitable but cash-poor if receivables are slow or inventory ties up cash.
CFO (Chief Financial Officer)
The executive responsible for managing a company's finances, including financial planning, risk management, record-keeping, and financial reporting to investors and stakeholders.
DeFi (Decentralized Finance)
Financial services — lending, borrowing, trading — built on blockchains and operated by smart contracts rather than traditional banks or intermediaries.
Earn-out
A portion of an acquisition price paid to sellers only after the acquired business hits agreed performance targets post-sale — aligning seller incentives with future results.
EBITDA
Earnings Before Interest, Taxes, Depreciation, and Amortization. A common measure of operating profitability used in valuations and M&A deals.
Enterprise Value (EV)
Total company value including debt minus cash — what an acquirer pays to own the entire business, often expressed as EV/EBITDA multiples in M&A.
ETF (Exchange-Traded Fund)
A basket of assets (e.g. all S&P 500 stocks) that trades on a stock exchange like a single share. ETFs offer diversification at low cost.
FIFO / LIFO
Inventory valuation methods: First-In-First-Out (FIFO) uses oldest costs first; Last-In-First-Out (LIFO) uses newest costs — affects reported profits and taxes.
GAAP
Generally Accepted Accounting Principles — the standard framework of guidelines for financial accounting in the United States, ensuring consistency and transparency in financial reporting.
IPO (Initial Public Offering)
The first time a company sells its stock to the general public on a stock exchange, allowing founders and early investors to cash out and raising capital for growth.
Liquidation Preference
Investor right determining the order and amount of proceeds paid on company exit — can result in founders receiving little after preferred shareholders are paid.
M&A (Mergers & Acquisitions)
The process of one company buying another (acquisition) or two companies combining (merger). A common "exit" path for startup founders.
Margin Loan
A loan using publicly traded securities as collateral. If the stock value drops significantly, the lender may issue a margin call requiring immediate repayment.
P&L (Profit & Loss Statement)
Financial statement showing revenues, expenses, and net income over a period — different from cash flow as it includes accrued but unpaid items.
Profit First
Cash management system where you allocate profit percentages first, then operate within remaining funds — as opposed to traditional "revenue minus expenses equals profit" approach.
QSBS (Qualified Small Business Stock)
IRS designation allowing founders and early employees to exclude up to $10 million in capital gains from federal taxes when selling qualifying startup stock held for 5+ years.
Revenue-Based Financing (RBF)
Alternative funding where investors provide capital in exchange for a percentage of future revenues until a predetermined amount is repaid — no equity given up.
ROI (Return on Investment)
The profit or loss generated by an investment relative to its cost, expressed as a percentage. A 200% ROI means you tripled your money.
Search Fund
Investment model where an entrepreneur raises capital to find, acquire, and operate a single small-to-medium business, typically with 2-3 years to find the right target.
Tax-Loss Harvesting
Investment strategy of selling losing positions to offset capital gains taxes while maintaining similar market exposure through replacement investments.
VAT (Value-Added Tax)
A consumption tax levied on goods and services in the EU and other countries at each stage of production. Unlike US sales tax, VAT is typically included in the advertised price.
Working Capital
Short-term assets minus short-term liabilities — the cash available for daily operations like payroll, inventory, and supplier payments.
Legal & Compliance
Broker-Dealer
Financial intermediary licensed to buy and sell securities for clients or its own account — subject to strict SEC regulation and fiduciary duties.
Cliff
The initial period in an equity vesting schedule where no shares are earned. After the cliff period (typically 1 year), a large portion vests, then the rest vests gradually.
Delaware Corporation
A business incorporated in Delaware, favored by startups and VCs because of its business-friendly laws, specialized court system, and established legal precedents for corporate matters.
Dropshipping
A business model where you sell products without holding inventory — when a customer orders, you purchase from a supplier who ships directly to the customer.
ESG
Environmental, Social, and Governance criteria used by investors to evaluate companies on sustainability and ethical impact, not just financial returns.
Fiduciary Duty
Legal obligation of directors, officers, and trustees to act in the best interests of shareholders and stakeholders, exercising care and loyalty.
GDPR
General Data Protection Regulation — EU law governing how companies collect, process, and store personal data, with significant fines for violations.
HIPAA
Health Insurance Portability and Accountability Act — US law requiring strict privacy and security standards for handling protected health information (PHI).
IP (Intellectual Property)
Legal rights protecting creations of the mind — including patents, trademarks, copyrights, and trade secrets that give competitive advantages.
IP Assignment
Legal transfer of intellectual property rights from individuals (founders, employees, contractors) to the company — critical for ensuring the business owns its innovations.
Non-Compete
A contract clause preventing an employee or founder from working for competitors or starting a competing business for a specified time after leaving the company.
Pareto Principle (80/20 Rule)
The observation that roughly 80% of outcomes come from 20% of causes — commonly applied to focus resources on the most impactful customers, features, or activities.
Patent
A legal monopoly granted by the government that gives an inventor exclusive rights to make, use, or sell their invention for a limited time (typically 20 years from filing).
Patent Troll
A company or individual that acquires patents not to build products, but solely to sue other companies for licensing fees and settlements. Also called Non-Practicing Entities (NPEs).
PPE (Personal Protective Equipment)
Safety equipment like masks, gloves, and gowns designed to protect healthcare workers and others from infection or injury. Critical supply during health emergencies.
Provisional Patent
A temporary US patent filing that secures an early priority date for 12 months while you prepare a full non-provisional patent application — cheaper but provides no legal protection.
Regulation D
SEC rule allowing private securities offerings to accredited investors without public registration — includes 506(b) and 506(c) exemptions with different advertising restrictions.
Sarbanes-Oxley (SOX)
US law requiring public companies to implement internal controls, financial reporting standards, and CEO/CFO certification to prevent corporate fraud.
SPV (Special Purpose Vehicle)
Legal entity created for a specific investment or transaction — commonly used in venture capital for deal-by-deal syndications or real estate investments.
Vesting
The process by which employees or founders earn their equity over time rather than all at once. Common schedules are 4 years with a 1-year cliff.
Marketing & Sales
A/B Testing
Experimental method comparing two versions of a webpage, email, or product feature to determine which performs better with users.
Affiliate Marketing
A model where partners (affiliates) promote your product and earn a commission on each sale or lead they generate — performance-based marketing at scale.
AOV (Average Order Value)
The average dollar amount spent each time a customer places an order — key metric for e-commerce optimization and pricing strategy.
Attribution
The method of determining which marketing touchpoint — ad, email, organic search — deserves credit for a conversion or sale.
CAPI (Conversion API)
Server-side tracking method that sends conversion data directly from your server to advertising platforms — more reliable than pixel-based tracking.
Churn
The rate at which customers stop paying for or using your product in a given period. High churn means you're losing customers as fast as you acquire them.
Cohort Analysis
A method of analyzing user behavior by grouping customers who share common characteristics (like signup month) and tracking their behavior over time.
CPC / CPM
Cost Per Click (CPC) is what you pay each time someone clicks your ad. Cost Per Mille (CPM) is the cost per 1,000 ad impressions shown.
CRO (Contract Research Organization)
Companies that provide clinical trial and research services to pharmaceutical and biotech companies, helping manage the complex FDA approval process.
CRO (Conversion Rate Optimization)
Systematic process of improving the percentage of website visitors who complete desired actions like purchases, signups, or downloads through testing and optimization.
CTR (Click-Through Rate)
The percentage of people who click on a link or ad after seeing it. A higher CTR means your messaging is compelling to the audience.
First-Touch vs Last-Touch Attribution
Marketing measurement models: first-touch credits the initial interaction, last-touch credits the final interaction before conversion — each tells different stories about customer journeys.
Funnel
The staged journey from stranger to customer: top of funnel (awareness), middle of funnel (consideration), bottom of funnel (purchase). Leaks at each stage reduce conversion.
GEO (Generative Engine Optimization)
Optimizing content and data to improve how AI models and chatbots cite or reference your brand — the next evolution of SEO for the AI-powered search era.
Growth Hacking
A discipline focused on rapid, data-driven experimentation across marketing channels and product features to find the most effective ways to grow a business.
ICP (Ideal Customer Profile)
A documented description of the customer segment that is the best fit for your product or service — used to align sales, marketing, and product development efforts.
KOL (Key Opinion Leader)
Influential individuals in specific industries or regions (especially Asia) who shape consumer opinions through expertise and social media presence — similar to influencers but more authority-focused.
LTV (Lifetime Value)
The total revenue or profit a business expects to earn from a single customer over their entire relationship. Compare to CAC to determine whether acquisition economics work.
Micro-Influencer
Content creators with smaller but highly engaged audiences (typically 10K-100K followers) — often deliver higher ROI than mega-influencers due to niche expertise and trust.
Microservices
Software architecture pattern where applications are built as a collection of small, independent services that communicate over networks — as opposed to monolithic architecture.
NPS (Net Promoter Score)
A customer loyalty metric based on asking "How likely are you to recommend us?" on a 0-10 scale. Scores of 9-10 are promoters, 0-6 are detractors.
PQL (Product-Qualified Lead)
A lead scored based on their in-product behavior and usage patterns, indicating they're more likely to convert to a paying customer than marketing-qualified leads.
Programmatic Advertising
Automated, real-time bidding system for buying and selling digital ad inventory using algorithms and data signals to target specific audiences.
Reg CF (Regulation Crowdfunding)
SEC exemption allowing startups to raise up to $5M from both accredited and non-accredited investors through registered crowdfunding platforms.
RevOps (Revenue Operations)
Business function that aligns sales, marketing, and customer success teams on data, processes, and metrics to optimize revenue generation and growth.
ROAS (Return on Ad Spend)
Revenue generated for every dollar spent on advertising. A ROAS of 3x means you earned $3 in revenue for every $1 in ads.
SDR (Sales Development Representative)
Sales role focused on qualifying inbound leads and generating outbound prospects before passing them to Account Executives for closing deals.
SEO (Search Engine Optimization)
The practice of improving a website's visibility in organic (unpaid) search results on Google and other engines — through content, links, and technical improvements.
UGC (User-Generated Content)
Content created by customers or users rather than brands — includes reviews, social posts, and testimonials, often used in marketing campaigns.
Operations & Strategy
2 and 20
Standard VC fund fee structure: approximately 2% annual management fee on assets under management plus 20% carried interest on investment profits.
Anchor Pricing
Presenting a high reference price first so subsequent options seem reasonable by comparison — exploits cognitive bias where people judge value relatively, not absolutely.
ARR (Annual Recurring Revenue)
The yearly value of predictable, subscription-based revenue a company expects to receive — a key metric for SaaS and subscription businesses.
Asset Class
A category of investment with similar characteristics and behavior — stocks, bonds, real estate, crypto, and private businesses are all separate asset classes.
B2B / B2C
Business-to-Business (B2B) means selling to other companies; Business-to-Consumer (B2C) means selling directly to individual people. The two require very different sales and marketing approaches.
Blue Ocean Strategy
Business strategy of creating uncontested market space rather than competing in existing "red ocean" markets — focuses on differentiation and new value creation.
Broker (Channel Partner)
Third-party sales representative who promotes your products to retailers or distributors, typically working on commission. Common in CPG, natural products, and wholesale.
CapEx
Capital expenditures for long-term assets like equipment, facilities, or technology — often creates organizational inertia due to sunk costs and depreciation schedules.
Change Management
Structured approach to transitioning individuals, teams, and organizations from current state to desired future state through communication, training, and support systems.
Chargeback
Forced reversal of a credit card transaction initiated by the customer's bank, often due to disputed charges — costs merchants fees and can threaten payment processing.
Chicken-and-Egg Problem
The challenge facing marketplaces and platforms where you need users to attract suppliers, but you need suppliers to attract users. Also called the "network effects bootstrap problem."
Co-op Advertising
Shared advertising costs between a brand and retailer, typically structured as a percentage of sales. Helps brands get better shelf placement and promotional support.
Contract Manufacturer
Third-party company that produces goods according to another company's specifications — requires careful IP protection and quality control agreements.
COO (Chief Operating Officer)
Executive responsible for day-to-day operations, often partnering with a visionary CEO to handle execution, processes, and operational scaling.
Creator Economy
Economic ecosystem where individual creators monetize their content, audience, and personal brand through platforms, sponsorships, products, and direct fan support.
CX (Customer Experience)
The sum total of all interactions and perceptions a customer has with your company across every touchpoint — from awareness through support and retention.
Data Room
An organized digital repository of financial documents, legal contracts, and business information that investors review during due diligence before making investment decisions.
Design Partners
Early customers who work closely with your team during product development, providing feedback and validation in exchange for early access and influence on the roadmap.
DTC (Direct-to-Consumer)
Business model selling products directly to end customers without traditional retail intermediaries — enables better margins, customer data, and brand control.
Due Diligence
The thorough investigation investors conduct before closing a deal — reviewing financials, legal contracts, customers, team, and intellectual property.
E-commerce
Buying and selling goods or services online through websites, apps, or digital marketplaces — distinct from traditional brick-and-mortar retail.
EOR (Employer of Record)
A third-party organization that handles payroll, benefits, and legal compliance for workers in countries where a company doesn't have a legal entity.
EOS (Entrepreneurial Operating System)
A popular business management framework for small-to-medium companies that organizes goals, accountability, and meetings into a structured system to help leadership teams execute.
EPC (Earnings Per Click)
In affiliate marketing, EPC is the average revenue generated for every click sent to an offer — a key metric for evaluating an offer's profitability.
EX (Employee Experience)
How employees perceive and experience their work environment, culture, tools, and growth opportunities — often considered upstream of customer experience quality.
Exit
The event at which founders and investors cash out of a company — typically through an acquisition (M&A) or an IPO.
FDA Approval Pathway
The multi-stage process for drug approval: preclinical research, Phase I-III clinical trials, then New Drug Application (NDA) review — typically taking 10-15 years and hundreds of millions in investment.
Fractional Executive
A part-time C-level executive (CFO, CMO, CTO) who provides strategic leadership to multiple companies, offering expertise without full-time salary costs.
Franchising
Business model where a franchisor licenses their brand, systems, and support to franchisees who pay initial fees plus ongoing royalties to operate local locations.
GMV (Gross Merchandise Volume)
The total dollar value of transactions processed through a marketplace or platform over a specific period — a key metric for two-sided marketplaces.
Go-to-Market (GTM)
The plan for how a company will reach and win customers — covering sales channels, pricing, messaging, and launch sequencing.
Google Penalty
Search engine punishment that reduces website rankings due to algorithm violations or manual actions, often requiring cleanup and reconsideration requests to recover.
Green Premium
Additional cost consumers pay for environmentally sustainable products or services compared to conventional alternatives — key challenge for climate tech adoption.
Groupthink
When a cohesive group prioritizes harmony and consensus over critical evaluation of ideas, often leading to poor decisions and suppressing dissenting opinions.
GSA Schedule
A pre-negotiated contract vehicle with the US General Services Administration that allows federal agencies to purchase approved products and services at set prices without separate procurement.
Halving
A Bitcoin protocol event occurring roughly every four years that cuts the rate of new Bitcoin supply in half — historically associated with price cycles.
Holding Company
A parent company that owns controlling interests in other companies (subsidiaries) but doesn't produce goods or services itself. Often used for tax optimization and risk management.
Homophily
The tendency for people to connect and hire others who are similar to themselves in background, experience, or thinking — often leading to less diverse teams without deliberate process interventions.
Human-Centered Design
Design approach that prioritizes real user needs, behaviors, and feedback over stakeholder preferences or assumptions — involves continuous user testing and iteration.
Imposter Syndrome
Persistent self-doubt about one's competence despite evidence of success, often causing high achievers to feel like frauds who will be "found out."
ISA (Income Share Agreement)
Educational financing where students repay a percentage of future income for a set period instead of fixed loan payments — aligns school incentives with student outcomes.
Lifestyle Business
Business optimized for owner income and work-life balance rather than maximum growth or venture capital scale — prioritizes sustainability over rapid expansion.
LMS (Learning Management System)
Software platform for delivering, tracking, and managing online education and training programs — handles course content, student progress, and assessments.
Localization
Adapting a product, service, or marketing campaign to a specific country or region — including language, culture, regulations, and local business practices.
LP / GP (Limited Partner / General Partner)
Fund structure where General Partners manage investments and operations while Limited Partners provide capital and receive returns but have limited control.
Moat
A durable competitive advantage that protects a company's profits from rivals — like a castle moat. Examples: network effects, brand loyalty, proprietary data, switching costs.
MOQ (Minimum Order Quantity)
The smallest number of units a supplier is willing to produce or sell in a single order — important for inventory planning and cash flow management.
MRR (Monthly Recurring Revenue)
The predictable monthly revenue from active subscriptions or contracts — the heartbeat metric for subscription businesses.
Net 30 / Net 60
Payment terms where invoices are due 30 or 60 days after receipt — affects cash flow timing and working capital management.
Noise (Decision Making)
Random variation in judgment caused by irrelevant factors like mood, hunger, or time of day — distinct from systematic bias, noise makes decisions unpredictably inconsistent.
Outcome-Based Pricing
Fee structure tied to delivered results or value rather than time spent — common alternative to hourly billing in consulting, legal, and professional services.
Personal Goodwill
The portion of a business's value attributed to a founder's personal reputation, relationships, or skills rather than business assets — important for tax allocation in acquisitions.
Portfolio Line of Credit
Loan secured by investment portfolio holdings — allows borrowing against securities without selling them, preserving potential upside and tax deferral.
Power Distance
Cultural dimension measuring how much hierarchy affects who can speak up, make decisions, or challenge authority — crucial for international teams and market entry strategies.
Power Law
Mathematical distribution where a small number of events account for most outcomes — fundamental to venture capital returns where few investments drive most profits.
Procurement
The strategic process of sourcing, purchasing, and managing suppliers and vendors — including risk assessment, contract negotiation, and ongoing performance management.
Quality of Earnings (QoE)
Financial due diligence process that validates the sustainability and accuracy of reported earnings — identifies one-time items, accounting irregularities, and profit quality.
Razor-and-Blades Model
Business strategy where you sell the main product cheaply (or give it away) and make profit on consumable supplies or services — like printers and ink cartridges.
Reshoring
Moving manufacturing and production operations back to the home country from overseas locations — often driven by automation, supply chain risks, or policy changes.
Reverse Merger
A way for private companies to go public by merging with an already-public "shell" company, often faster and cheaper than a traditional IPO.
RFP (Request for Proposal)
A formal document that organizations (especially government) use to solicit bids from vendors for products or services. Often highly structured with specific requirements.
Secondary Sale
When founders or employees sell their existing shares to other investors before an IPO or acquisition, providing personal liquidity without the company raising new capital.
Seller Financing
An arrangement in an acquisition where the seller lends part of the purchase price to the buyer, who repays it over time — often used when buyers want to reduce up-front capital.
Side-Channel Attack
Method of extracting secrets (like passwords or encryption keys) by analyzing physical information like sound, power consumption, or timing patterns.
SKU (Stock Keeping Unit)
A unique identifier for each distinct product, size, color, or variant in inventory management. Essential for tracking sales, inventory, and performance by product type.
SOP (Standard Operating Procedure)
Step-by-step written instructions for routine business processes, ensuring consistency and quality when tasks are performed by different team members.
Take Rate
The percentage of each transaction that a marketplace or platform keeps as revenue. For example, if you facilitate a $100 sale and keep $3, your take rate is 3%.
TAM (Total Addressable Market)
The maximum total revenue opportunity if your product captured 100% of its target market. Investors use TAM to assess the ceiling on a startup's potential.
Traction
Measurable evidence that a business is working — revenue, active users, retention rates, or growth. Investors look for traction before writing checks.
Two-Sided Marketplace
A platform business model that connects two distinct user groups (like buyers and sellers on eBay). Success requires solving the "chicken-and-egg problem" of building supply and demand simultaneously.
Type 1 vs Type 2 Decisions
Bezos framework: Type 1 decisions are irreversible and require careful deliberation; Type 2 decisions are reversible "two-way doors" that should be made quickly by small teams.
Usage-Based Pricing
Pricing model where customers pay based on actual consumption or usage (API calls, storage, compute) rather than flat subscription fees — common in AI and cloud services.
USP (Unique Selling Proposition)
The single most compelling reason a customer should choose your product over competitors — distinct from generic value propositions by being specific and differentiated.
Wartime CEO vs Peacetime CEO
Ben Horowitz framework: Wartime CEOs focus on survival when the company faces existential threats; Peacetime CEOs optimize for growth and culture when runway and market position are secure.
Startup & VC
Accelerator
A fixed-term program (e.g. Y Combinator, 500 Startups) that trains early-stage startups with mentoring and sometimes capital in exchange for equity or a program fee.
Accredited Investor
A legal classification in the US for individuals (meeting wealth or income thresholds, or holding relevant credentials) who are permitted to invest in certain private offerings not available to the general public.
Angel Investor
An individual who invests personal money into very early-stage companies, typically before institutional venture capital gets involved.
Bootstrapped
Building a business using only personal savings and revenue from customers, without raising outside investment.
Bridge Round
Short-term financing between major funding rounds, designed to provide enough runway to reach the next milestone or priced round. Often structured as convertible notes or SAFEs.
Burn Rate
How quickly a company spends its cash reserves each month, usually expressed in dollars per month. A high burn rate with little revenue shortens a startup's runway.
Cap Table
Short for "capitalization table." A spreadsheet showing who owns what percentage of a company — founders, employees with equity, and investors.
Convertible Note
A short-term loan to a startup that converts into equity (ownership shares) at a later funding round, often at a discount to reward the early risk.
Decacorn
A private company valued at $10 billion or more — 10 times the $1 billion threshold of a unicorn. Even rarer than unicorns, with only a few dozen worldwide.
DEI (Diversity, Equity, Inclusion)
Organizational practices and policies designed to ensure fair treatment and full participation of all people, especially groups that have been underrepresented or discriminated against.
Demo Day
A culminating event where accelerator startups pitch their companies to a room full of potential investors, typically after 3-4 months of intensive mentoring.
Equity
Ownership shares in a company. Giving equity to investors or employees trades a slice of ownership for capital or talent.
MVP (Minimum Viable Product)
The smallest version of a product that lets you test real demand with real customers — enough to learn, not everything you imagined.
Pivot
A deliberate, structured change in product, target customer, or business model, made in response to what you've learned from the market.
Private Equity (PE)
Investment firms that buy established (often profitable) companies using a mix of their own capital and debt, then improve operations and sell for a profit.
Product-Market Fit
The point at which a meaningful group of customers want your product so much they would be genuinely disappointed if it disappeared. It's the holy grail for early-stage startups.
Psychological Safety
A team environment where members feel safe to speak up, ask questions, make mistakes, and propose ideas without fear of negative consequences or judgment.
Rolled Equity
When founders or management retain ownership stakes in a business after selling to private equity or strategic buyers — aligns interests for future value creation.
Runway
How many months a company can operate before running out of cash, calculated by dividing cash on hand by monthly burn rate.
SAFE Note
Simple Agreement for Future Equity — a popular early-stage funding instrument that gives investors the right to equity at a future priced round, without interest or a maturity date.
Seed Round
The first significant round of outside funding for a startup, typically used to validate the product and find early customers before a larger Series A.
Series A / Series B / Series C
Sequential rounds of institutional venture capital funding. Series A typically scales a proven model; Series B accelerates growth; Series C and beyond fund expansion or prepare for an IPO.
Term Sheet
A non-binding document summarizing the key terms of an investment deal — valuation, amount, investor rights — before the full legal contracts are drawn up.
Unicorn
A private startup valued at $1 billion or more. So named because they were once considered mythically rare; today there are hundreds worldwide.
Valuation
The agreed-upon price of a company at a given funding round or acquisition — what investors and founders negotiate before a deal is struck.
VC (Venture Capital)
Professional investment funds that back high-growth startups in exchange for equity, betting that a small number of outsized winners will return the whole fund.
Venture Builder
Organization that systematically creates multiple startups by providing shared resources, expertise, and capital — also called venture studios.
Venture Debt
Debt financing specifically for VC-backed startups, often structured as loans with warrants. Provides capital without diluting equity, typically used to extend runway between equity rounds.
Technology & Product
AGI (Artificial General Intelligence)
Hypothetical AI with broad human-like reasoning capabilities across diverse tasks — distinct from today's narrow, task-specific AI models like ChatGPT or image recognition.
Agile
A family of iterative software development approaches (including Scrum and Kanban) where teams work in short cycles, release frequently, and adapt based on feedback.
AI Agent
Autonomous or semi-autonomous software that can plan and execute multi-step tasks using various tools and APIs — more sophisticated than single-shot chatbot responses.
API (Application Programming Interface)
A standardized way for different software systems to communicate with each other — like a waiter taking your order to the kitchen and bringing back food.
AR/VR (Augmented/Virtual Reality)
AR overlays digital information on the real world (like phone apps); VR creates fully immersive digital environments. Both are expanding from gaming into enterprise training and remote work.
ATS (Applicant Tracking System)
Software that manages the hiring process by organizing job applications, screening candidates, scheduling interviews, and tracking candidates through the recruitment pipeline.
CI/CD (Continuous Integration/Continuous Deployment)
Development practice of automatically integrating code changes, running tests, and deploying to production frequently to reduce bugs and increase development velocity.
CMS (Content Management System)
Software that allows users to create, edit, and manage website content without coding knowledge. Examples include WordPress, Webflow, and Drupal.
Codebase
The complete collection of source code files that make up a software product. A messy codebase is harder to maintain, test, and extend.
CRM (Customer Relationship Management)
Software that tracks interactions with leads and customers throughout the sales process — storing contact info, deal stages, communication history, and pipeline forecasts.
Data Lake
Large storage repository that holds raw structured and unstructured data for analytics — requires proper governance and cataloging to be useful.
Data Quality
The accuracy, completeness, consistency, and reliability of data used in business decisions and AI models — poor data quality leads to "garbage in, garbage out" results.
Deepfake
AI-generated synthetic audio, video, or images that convincingly mimic real people — raising concerns about trust, consent, and misinformation.
Digital Transformation
Using digital technologies, data, and automation to fundamentally change how businesses operate and deliver value — beyond simply digitizing existing paper processes.
FinOps
Cloud financial operations — the practice of managing cloud infrastructure costs through accountability, optimization, and unit economics to avoid runaway spending.
Human-in-the-Loop (HITL)
System design where humans provide oversight, review, or intervention in automated processes — especially critical for high-stakes decisions like hiring or financial transactions.
Lights-Out Factory
Highly automated manufacturing facility that can operate with minimal or no human presence on the floor — "lights off" because workers aren't needed during production.
LLM (Large Language Model)
An AI system trained on massive amounts of text to understand and generate human language. ChatGPT, Claude, and Gemini are all built on LLMs.
NFT (Non-Fungible Token)
A unique digital asset stored on a blockchain that proves ownership of digital items like art, collectibles, or in-game items. Unlike cryptocurrencies, each NFT is one-of-a-kind.
No-Code / Low-Code
Platforms that let users build applications using visual interfaces and drag-and-drop components instead of writing code. Low-code may still require some programming.
Painkiller vs Vitamin
A framework for product positioning: "painkiller" products solve urgent, critical problems customers will pay for immediately; "vitamin" products are nice-to-have improvements.
Quantum Computing
Computing technology using quantum mechanical properties to process information exponentially faster than traditional computers for specific problems — potentially breaking current encryption methods.
Retainer
Recurring fee paid to secure ongoing access to services, advice, or support — provides predictable revenue for service providers and guaranteed availability for clients.
RLHF (Reinforcement Learning from Human Feedback)
AI training method where models are fine-tuned using human ratings and preferences, explaining why chatbots prioritize "helpful" responses over pure accuracy.
SaaS (Software as a Service)
Software delivered over the internet on a subscription basis rather than installed locally. Customers pay monthly or annually to access the product.
Self-Custody
Holding cryptocurrency in your own wallet (where you control the private keys) rather than leaving it on an exchange or in an ETF. "Not your keys, not your coins."
Smart Contract
Self-executing code on a blockchain that automatically enforces agreements when predetermined conditions are met — no intermediary required.
SOC 2
A US audit framework that evaluates SaaS companies on security, availability, processing integrity, confidentiality, and privacy — often required by enterprise customers.
Sprint
A fixed time period (usually 1–2 weeks) in Agile development where a team commits to completing a defined set of work. At the end, there's a working, reviewable result.
Super App
A single mobile application that combines multiple services like messaging, payments, shopping, and transportation — popular in Asia (WeChat, Grab) but challenging in Western markets.
Technical Debt
The accumulated cost of shortcuts and quick fixes in software code — like financial debt, it compounds over time and eventually demands repayment through slower development and more bugs.
Web3
The vision of a decentralized internet where users own their data and digital assets through blockchain technology, smart contracts, and cryptocurrency — as opposed to Web2's platform-controlled model.