Glossary
Bootstrapping? MVP? Business Model Canvas? In the start-up scene, we encounter a very special vocabulary. To help you understand what the individual terms mean at the start of your start-up journey, we provide you with an overview of many basic technical terms in our start-up glossary.
A | B | C | D | E | F | G | H | I | J | K | L | M | N | O | P | Q | R | S | T | U | V | W | X | Y | Z
A
01
Accelerator
Program that helps start-ups grow faster, often through mentoring and funding.
02
Agile Development
Flexible project management approach that promotes iterative progress and responsiveness to change.
03
A/B Testing
Testing method to compare two versions of a product to determine which performs better.
04
Advisor
x
B
01
Business Model Canvas
Strategic template for developing and documenting a start-up's business model.
02
Bootstrap
Launching a start-up with minimal external funding, relying instead on revenue or personal savings.
03
Business Plan
x
04
Business Angel
x
C
01
Crowdfunding
A method of financing where many people contribute small amounts, often through platforms.
02
Customer Acquisition Cost
The cost associated with gaining a new customer, key for understanding profitability.
03
Cap Table
x
04
C-Level (CEO)
x
D
01
Disruptive Innovation
Innovation that creates a new market, displacing established competitors.
02
Data-Driven Decision-Making
Using data analytics and metrics to guide business strategies and choices.
03
Due Diligence
Careful assessment of a company before investment, examining financial and market positions.
04
Diversity
x
E
01
Equity
Ownership interest in a company held by founders and investors.
02
Elevator Pitch
A brief and impactful presentation of a business idea to potential investors.
03
Exit Strategy
Plan for founders and investors to realize returns, e.g., through a sale or IPO.
04
x
x
F
01
Funding Round
A round in which a start-up raises capital from investors, e.g., Series A, B, C.
02
Freemium
Business model offering a free tier with optional paid features for revenue generation.
03
Founder Fit
The alignment of a founder's skills and passion with the start-up’s mission and challenges.
04
x
x
G
01
Growth Hacking
Marketing strategy that uses creative, data-driven methods to achieve fast scaling.
02
Go-To-Market Strategy
Plan for how a company will reach and serve its target customers effectively.
03
Greenwashing
x
04
x
x
H
01
Hackathon
Event at which interdisciplinary talents from different areas come together to develop innovative and sometimes unusual solutions for real and relevant problems from industry / business. The term is a combination of ‘hacking’ and ‘marathon’.
02
Hockey Stick Effect
Business model offering a free tier with optional paid features for revenue generation.
I
01
Incubator
Organization or program that supports early-stage start-ups with funding, curriculum, resources and networks.
02
Intellectual Property (IP)
Legal rights that protect innovations, essential for science start-ups to secure their discoveries.
03
Impact
Repetitive process of developing and refining a product or idea based on feedback.
04
Initial Public Offering (IPO)
An Initial Public Offering (IPO) describes the first public issue of a company's shares on the stock exchange. The main aim is to raise new capital for the company from a wider range of investors. An IPO also offers existing shareholders and original VCs the opportunity to sell their shares and withdraw from the company.
J
01
Just-in-Time (JIT)
An inventory strategy where materials or products are delivered just when they are needed in the production process, minimizing storage costs. Common in lean manufacturing and tech start-ups to reduce waste and improve operational efficiency.
02
Joint Venture
A business arrangement where two or more parties agree to pool their resources and expertise to achieve a common goal, sharing risks, profits, and responsibilities.
03
Jumpstart
To quickly launch or energize a project, business, or initiative. Often used to describe the initial phase of a start-up's growth or development. A jumpstart is crucial for building momentum in the early stages of a start-up’s journey.
K
01
KPI (Key Performance Indicator)
Metrics for measuring a start-up’s success, e.g., revenue growth or user retention.
02
Knowledge Transfer
Process of sharing scientific knowledge for practical use, often through partnerships with industries.
03
Key Partners
Essential collaborators that help achieve a business's objectives, e.g., suppliers or strategic allies.
04
Key Activities
Core actions that drive value in a business, such as production, marketing, or sales.
L
01
Licensing
Process where scientific start-ups grant rights to use their technology in exchange for royalties.
02
Lifetime Value
The projected revenue from a customer over their entire relationship with the company.
03
Lean Start-up
Method focused on quickly testing hypotheses and minimizing waste.
04
Letter of Intent (LoI)
A type of preliminary agreement. As a written declaration of intent, it serves two parties to document a fundamental interest in the realisation of a transaction, a negotiation or the general conclusion of a contract.
M
01
Minimum Viable Product (MVP)
Basic product version enough to test market demand.
02
Market Fit
Degree to which a product satisfies a strong market demand.
03
Monetization Strategy
Plan for generating revenue, such as subscriptions, ads, or direct sales.
04
x
x
N
01
Non-Disclosure Agreement (NDA)
A Document, in which two parties agree which information remains confidential during negotiations or the conclusion of a contract and may not be passed on to third parties. This mainly applies to issues relating to internal processes and agreements.
02
Networking
Networking refers to the process of building and maintaining professional relationships to exchange information, advice, and opportunities. It is essential for business growth, partnerships, and career development.
03
Niche Market
A niche market is a specific segment of the market that focuses on a particular product, service, or audience with distinct needs, often serving a specialized demand that is not addressed by the broader market.
03
Net Promoter Score (NPS)
NPS measures customer loyalty by asking how likely customers are to recommend a company’s product or service to others, on a scale of 0-10.
O
01
Onboarding
Onboarding is the process of integrating new employees into a company, helping them understand the company culture, policies, and their specific roles to ensure a smooth transition and effective performance.
02
Operations
Operations refers to the day-to-day activities involved in running a business, including production, logistics, management, and service delivery. It ensures the smooth and efficient functioning of all business processes.
03
Open Source
Open Source refers to software or products whose source code is made publicly available for anyone to view, use, modify, and distribute. This promotes collaboration and transparency within the development community.
04
One-Pager
A Onepager is a concise, single-page document used to summarize key information about a product, service, or business. It is often used for pitching ideas to potential investors, partners, or customers, offering a quick overview of the value proposition, mission, and goals.
P
01
Pitch Deck
In a pitch deck, founders briefly and concisely summarise the most important content from their business plan on a few slides. With the pitch deck, the founders can then present their startup convincingly to potential investors - in other words, pitch.
02
Pivot
Strategic change in a start-up’s focus or approach based on feedback or market conditions.
03
Product Market Fit (PMF)
Validating the product-market fit (PMF) is the most important milestone for a start-up. It is proof that a product has reached sufficient development maturity for the market to want it. Before the PMF, founders focus exclusively on customer research and product development.
04
Product Roadmap
A product roadmap is a popular project management tool for start-ups. Founders and their team use it to determine how product development is to be prioritised and the product vision implemented. The product roadmap contains all important information about the product or project and its development over time - the overview is usually divided into weekly steps.
Q
01
Quality Assurance
Processes ensuring product or service meets standards and requirements.
02
Quick Wins
Small, easy actions that generate quick results and build momentum.
R
01
Revenue Streams
The source of income a business earns from its various activities or offerings. Found in the Business Model Canvas, they represent key components of monetization strategies.
02
Return on Invest (ROI)
A measure of the profitability of an investment, calculated as the ratio of net profit to the initial investment cost.
Critical for assessing investment viability, both for investors and internal decision-making.
03
Rapid Prototyping
The process of quickly creating a scaled-down version or model of a product to test and iterate on its design. A cornerstone of lean start-up methodology for minimizing waste and refining product-market fit.
S
01
SAM
Serviceable Available Market refers to the portion of the TAM (Total Addressable Market) that a company can realistically target with its current products, services, and geographical reach. It takes into account practical constraints like market readiness, distribution capabilities, and regulatory restrictions.
02
SOM
Share of Market (or Serviceable Obtainable Market) is the portion of the SAM that a company expects to realistically capture within a specific timeframe. It reflects achievable market penetration based on factors like competition, pricing strategy, and operational capacity.
03
Stakeholder Management
Process of building relationships and managing expectations with individuals involved in the business.
04
Seed Funding
Initial round of funding to support early development before larger investments.
T
01
Total Addressable Market (TAM)
Total revenue opportunity available if a product achieves 100% market share.
02
Term Sheet
A preliminary, non-binding agreement that outlines the terms and conditions under which an investment will be made.
A key step before finalizing funding. It includes valuation, equity percentages, board composition, and veto rights. Example: A seed-stage start-up might negotiate a term sheet offering $1 million for 15% equity.
03
Technology Readiness Level (TRL)
A scale developed by NASA to assess the maturity of a technology, ranging from basic research (TRL 1) to full deployment (TRL 9). Often used in science-based start-ups.
U
01
Unicorn
A start-up with a valuation of over one billion USD - before a possible IPO or exit of the company.
02
Unique Selling Proposition
Key aspect of a product or service that sets it apart from competitors.
03
User Persona
Profile of a typical user created to guide product and marketing strategies.
04
Upselling
A sales technique that encourages customers to purchase higher-end or additional products or services. A vital strategy for increasing revenue without needing to acquire new customers.
V
01
Value Proposition
A statement that clearly explains how a product or service solves a customer’s problem and delivers unique benefits. It’s a core part of a start-up’s identity, used to attract customers and investors.
​Often created during the Business Model Canvas process to clarify how the start-up differentiates itself.
02
Venture Capital
Venture capital describes a sub-sector of the private equity business in which a private equity company invests in an unlisted company and profits from its profits.
03
Valuation
The process of confirming that a business idea, product, or service meets the needs and expectations of its target audience. Validation minimizes risks and ensures product-market fit.
04
Vesting
If investors have decided to financially support a startup, they usually have an increased interest in keeping certain employees and, above all, the founders in the company. One method of ensuring this is called vesting. Agreements that stipulate that a person receives company shares depending on their length of service are called vesting clauses, and the term of such a clause is called a vesting period.