Creative Bridge Resources

Module 1 - Software is eating the World

Module 2 - Understanding Markets

Module 3 - Culture

Module 4 - Understanding your Customers

Module 5 - Operations

Module 6 - Build-Measure-Learn

Module 7 - Pivoting

Module 8 - Decks

Module 9 - Design

Module 10 - Funding

Glossary

[Borrowed heavily from here]

Acquisition

When one company buys controlling stake in another company. Can be friendly (agreed upon) or hostile (no agreement).

Agile

A philosophy of software development that promotes incremental development and emphasizes adaptability and collaboration.

Angel investor

Individual who provides a small amount of capital to a startup for a stake in the company. Typically precedes a Seed Round and usually happens when the startup is in its infancy.

B2B

Business to business. This describes a business that is targeting another business with its product or services. B2B technology is also sometimes referred to as enterprise technology. This is different from B2C which stands for business to consumer, and involves selling products or services directly to individual customers.

Board of directors

A group of influential individuals, elected by stockholders, chosen to oversee the affairs of a company. A board typically includes investors and mentors. Not all startups have a board, but investors typically require a board seat in exchange for an investment in a company.  

Bootstrapped

A company is bootstrapped when it is funded by an entrepreneur's personal resources or the company's own revenue. Evolved from the phrase "pulling oneself up by one's bootstraps."

Convertible debt

This is when a company borrows money with the intent that the debt accrued will later be converted to equity in the company at a later valuation. This allows companies to delay valuation while raising funding in it's early stages. This is typically done in the early stages of a company's life, when a valuation is more difficult to complete and investing carries higher risk.

Debt financing

This is when a company raises money by selling bond, bills, or notes to an investor with the promise that the debt will be repaid with interest. It is typically performed by late-stage companies.

Equity financing

The act of raising capital by selling off shares of a company. An IPO is technically a form of equity financing.

Exit

This is how startup founders get rich. It's the method by which an investor and/or entrepreneur intends to "exit" their investment in a company. Commons options are an IPO or buyout from another company. Entrepreneurs and VCs often develop an "exit strategy" while the company is still growing.
IPO

Initial public offering. The first time shares of stock in a company are offered on a securities exchange or to the general public. At this point, a private company turns into a public company (and is no longer a startup).

Lean

A method of working where you create the most value for the customer while minimising resources, time, energy and effort.

NDA

Non-disclosure agreement. An agreement between two parties to protect sensitive or confidential information, such as trade secrets, from being shared with outside parties.

MVP

Minimum Viable Product. A product with just enough features to satisfy early customers, and to provide feedback for future product development.

Pivot

The act of a startup quickly changing direction with its business strategy. For example, an enterprise server startup pivoting to become an enterprise cloud company.

Round

Startups raise capital from VC firms in individual rounds, depending on the stage of the company. The first round is usually a Seed round followed by Series A, B, and C rounds if necessary. In rare cases rounds can go as far as Series F, as was the case with Box.net.

SaaS

Software as a service. A software product that is hosted remotely, usually over the internet (a.k.a. "in the cloud").

Seed

The seed round is the first official round of financing for a startup. At this point a company is usually raising funds for proof of concept and/or to build out a prototype and is referred to as a "seed stage" company.

Series

Refers to the specific round of financing a company is raising. For example, company X is raising their Series A round.

Startup

A startup company is a company in the early stages of operations. Startups are usually seeking to solve a problem of fill a need, but there is no hard-and-fast rule for what makes a startup. A company is considered a startup until they stop referring to themselves as a startup.

Term sheet

A non-binding agreement that outlines the major aspects of an investment to be made in a company. A term sheet sets the groundwork for building out detailed legal documents.

Valuation

The process by which a company's worth or value is determined. An analyst will look at capital structure, management team, and revenue or potential revenue, among other things.

Venture capital

Money provided by venture capital firms to small, high-risk, startup companies with major growth potential.

Venture capitalist

An individual investor, working for a venture capital firm, that chooses to invest in specific companies. Venture capitalists typically have a focused market or sector that they know well and invest in.

Vesting

When an employee of a company gains rights to stock options and contributions provided by the employer. The rights typically gain value (vest) over time until they reach their full value after a pre-determined amount of time. For example, if an employee was offered 200 stock unites over 10 years, 20 units would vest each year. This gives employees an incentive to perform well and  stay with the company for a longer period of time.