Startup Jargon
The language, terminology, and buzzwords used by startups, entrepreneurs, and venture capitalists.
Average Revenue Per Account (ARPA)
Average Revenue Per Account (ARPA) is a financial metric used by startups to measure the average revenue generated per customer account.
Annual Recurring Revenue (ARR)
Annual Recurring Revenue (ARR) refers to the amount of revenue a startup generates in a year from its recurring sources of income, such as subscriptions, maintenance fees, or service contracts.
Burn Multiple
Burn Multiple is a metric used to measure the ratio of a company's generated revenue to the cash spent (burn) on generating that revenue.
The 4 Types of User Data
To build better customer experiences, startups can use four types of data: First-Party Data collected from direct interactions with customers, Second-Party Data acquired from trusted partners, Third-Party Data acquired from data aggregators, and Zero-Party Data which customers freely give to personalize offers and experiences.
CAC Payback
CAC Payback is a metric that measures the time it takes for a startup to recoup the cost of acquiring a new customer, Customer Acquisition Cost (CAC), through the revenue generated from that customer.
Gross Margin
Gross Margin is a financial metric that measures the revenue a startup generates after accounting for the Cost of Goods Sold (COGS).
Monthly Recurring Revenue Growth Rate (MRR Growth Rate)
Monthly Recurring Revenue Growth Rate (MRR Growth Rate) measures the percentage increase or decrease in MRR over a specific period of time, typically on a monthly basis.
Monthly Recurring Revenue (MRR)
Monthly Recurring Revenue (MRR) is a metric that measures the predictable and recurring revenue a startup generates from its customers each month.
New Buyer Growth Rate
New Buyer Growth Rate is a metric that measures the rate at which a startup is acquiring new customers.
Listing Conversion Rate
Listing Conversion Rate is a metric that measures the percentage of users who take a desired action on a startup's website or app, such as signing up for a newsletter, creating an account, or making a purchase.
Customer Acquisition Cost (CAC)
Customer Acquisition Cost (CAC) is a metric that measures the cost a startup incurs to acquire a new customer.
Average Order Value (AOV)
Average Order Value (AOV) is a metric that measures the average amount of revenue a startup generates from each customer order.
Revenue Growth Rate
Revenue Growth Rate is a key performance indicator (KPI) for startups, measuring the percentage increase in revenue on a month-over-month basis.
Startup Runway
Startup Runway refers to the amount of time a startup has before it runs out of funds based on its current rate of spending.
Activation Rate
Activation Rate is a metric that measures the percentage of users who complete a certain milestone in the onboarding process of a startup's product.
Lifeboat Excercise
In a startup context, a lifeboat exercise typically involves identifying which team members or business functions are essential to the company's survival in the event of a crisis, such as a funding shortfall, economic headwinds, or loss of a key customer.
Average Revenue Per User (ARPU)
Average Revenue Per User (ARPU) is a metric used to measure the amount of revenue generated by an individual user of a startup's product or service.
Retention Curve
A retention curve is a graph that shows the percentage of customers or users of a startup's product or service who continue to use the product over time.