Startup Terms You Need to Know in 2021 Explained by Ankur Warikoo !!!

Angel Investor

Which Invest money based on your idea at the very beginning without any business model & Revenue Sources. If you don't have a structure or a foundation for your startup they don't even care. They only focus on you what you can give back. Your idea is the secondary thing. They believes in you and fund your idea to become a successful Startup. That's why they Called as an Angel Investor. They are angle of God:)

Average revenue per user (ARPU)

Acquisition

Alpha testing

When you are about to launch your newly released version, which will given to your internal community like employees, engineers, friends and families. Alpha Testing is performed to get a feedback from The Internal community for improvement for the 2nd Version of the Product.

Beta Testing

After the performing Alpha Testing & taken care of Improvement of 1st Version. You will release a 2nd Version of the Product to give it to few customers not whole market.

Bootstrapping

Owner will not take any money from outside investors for banks or any other. Owner will arrange money from their parents, relatives & friends.

Burn Rate

Burn Rate is the Money that you lose every month which is a loss in your Revenu.

To calculate Burn Rate (BR) = Revenue generated by Company/month - Total Expenses happen/month.

Business model

Excel sheet with clearly show that how you are performing on every month quarter and yearly basis. Also includes your revenue expenses and profit and loss calculation with you made in past for how you will going to improve this in your future.

Business Plan

This plan is build along with Business Model.

This Plan we will decide,

• What will be the Product Strategy?
• Who are our Ideal Customer?
• How to Penetrate in the Market?
• How We will compete with our competitor in a better way?
• How to Scale our Business?
• On which Projects we should work on?

All of these are parts of Business Plan which you will present to someone to convince to invest in your Company / Startup.

Cap Table

Who are the shareholder of the company and what % of shareholding of a company they have?

Churn

What percentage (%) of your Paid customer are losing at every specific period?

Cliff

Conversion Funnel

At Which path customer will followed to become a Paid Customer of yours. I found an ad on Google about one free course which I want to do. So that I jump on the landing page. Fill that form a login that free course. After that, I got an emails from the the owner about different paid courses which he is running on his website. Free course then I might bi that paid course also.

So, In This funnel I get the free course. Then I share my email address with owner and after 2-3 week I become paid customer of that Owner by this way conversion funnel works.

Whatever the steps this is a part of the conversion funnel.

Customer Acquisition Cost (CAC)

Important Metrics in the Startup World. At what cost you acquire New Customer from the market.

Customer Segments

Which customer you are targeting if you feel that everyone is your customer then you are going to be fool. So make sure you target well by choosing right demographics, income profile, gender, industry from the belong.

DAU (Daily Active user)

Daily Active user. This term generally used in Apps & SaaS Model to track their Daily Signups and other Matrices.

Unicorn

It is a Startup who has a $1 Bn valuation.

Decacorn

It is a Startup which has got valuation of $10 Bn. Which is bigger than a Unicorn.

Dragon

It is a startup who has raised $1 Bn in just one funding round, Only.

Equity

Equity means Stocks. If you Buy equity of one company then you will get Ownership and Shareholding in that company.

ESOPs (Employees Stock Options)

Exercise Period

Exit

If an Investor invested money in your startup or company at some point of time which is usually between 7 to 10 years he or she want to return on their money through exit. This is the time period that Investor wait for before they want their money back.

Freemium

Freemium is Based on Free + Premium

In some of Apps or SaaS model have some features are completely free for Everybody but if User wants advanced feature then user have to pay for that particular Tool / Product / App / SaaS.

IPO (Initial Public Offering)

Landing Page

If someone found in an ad on Google and as someone click on that then user will find a landing page on that page every single detail mention about the product for which product they are selling. Landing Page has only one Call To Action(CTA) like,

• Buy Now
• Call Now
• Visit Now
• Subscribe Now

So, these are the kind of Call To Action(CTA) which used on a Landing Page. Whereas Website have multiple CTA on Single Page which might confuse the user, where to click :(

LTV (Life Time Value)

MAU (Monthly Active User)

In DAU it is daily active user.
Where, MAU means monthly active user.

Remember,

Execution is the Real Game !!!

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