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What verb is most commonly used with 'venture capital' as object?
raise
Explain "And they had actually validated it through LEAN STARTUP"
A core component of Lean Startup methodology is the build-measure-learn feedback loop.
Explain "MVP style testing"
Experimenting with a 'lightweight' version of the product to gather qualitative feedback
What is meant by "investors and a lot of entrepreneurs will talk about JOCKEY and HORSE"
"the jockey meaning the founders, and the horse being the concept"
Explain "it's time to PIVOT"
to change direction strategically without abandoning everything
Explain "You try some PIVOTS and that doesn't lead to bad behavior."
Deliberate, strategic changes in direction
Explain "liquidation preference"
A liquidation preference is a clause in a venture capital (VC) agreement that determines who gets paid first if a startup is sold, merged, or fails.
Explain "if you're at the bottom of a LIQUIDATION STACK"
The liquidation stack is the order of priority in which different classes of investors (or shareholders) are repaid when a startup is sold, merged, or liquidate
What do A, C, and D refer to in "you're the last in line, series A, C, D, and common"?
Funding rounds
Explain "you're the last in line, series A, C, D, and COMMON".
Common Stock - the most basic type of ownership. Common stockholders are last in the liquidation stack.
Explain the difference between 'early adopters' and 'mainstream customers'
Explain "a million dollar SEED ROUND"
The first official stage of startup funding
Explain CAC
Customer acquisition cost. The average expense of gaining one new customer, including marketing and sales costs.
Explain LTV
Lifetime value. The projected revenue a company expects from a single customer over the entire relationship with the business.
Explain "You try to get a BRISGE LOAN"
A short-term loan used to provide funding until longer-term financing can be secured
Explain 'dilution'
The reduction in the ownership percentage of existing shareholders when new shares are issued to raise capital.
