Here Are Key Words And Phrases You Need To Know As A Tech Startup Founder
Starting a business isn’t easy – there’s a lot you have to manage, and there’s even more you have to learn if you want to stay ahead of the game and scale.
Without bombarding you all with too much information – we’ve made a list of some of the basics that could get you started.
What is an EVP?
An EVP (Employee Value Proposition) is a unique set of rewards and benefits that an employer offers to current and future employees in return for their value to the organization.
The EVP is centered around the employee work experience. It helps the organization establish credibility and differentiate its brand to attract the right fit and top talent.
Validation
Many metrics signal idea validation, but it’s about proving there is a need and demand for the product at the end of the day. One of the most vital validation signals is when people pay for the product, use it and recommend it to others with similar needs.
Burn rate
Quite literally, how fast you are spending your money. Alternatively referred to as a run rate.
Incubator
An incubator differs from an accelerator because it supports startups in their early development stages. It’s essentially an organization that nurtures young firms during their first few months or years, usually exchanging equity.
Accelerator
If you’re launching a startup, accelerators can help you move your idea quickly by providing you with mentorship and fundraising opportunities during a few monthly programs.
Intellectual property
A protected invention through patents, copyrights, trademarks, or others.
Boot-Strapping
As Carey Martell, Founder of Power Up TV, put it, “Boot-strapping a startup means ramen noodle days. Every time you want to splurge on something, you think, ‘Well, I could have that $20 steak dinner, or I could hire a virtual assistant from the Philippines.’” It simply means using your funds to run your business.
Pitch deck
Startups frequently prepare a “pitch deck” to present their company to prospective angel or venture capital investors. The pitch deck typically consists of 15-20 slides in a PowerPoint presentation and is intended to showcase the company’s products, technology, and team to the investors. In addition, they typically cover all aspects of your business concisely and compellingly.
Target market
A target market is a group of potential customers you identify to sell products or services to.
Seed funding
The first round of small, early-stage investment from family members, friends, banks, or investors is commonly referred to as seed funding.
Venture capital
Venture capital is financing provided by firms to small, high-risk, startup companies with large growth potential in return for equity. Investors working for venture capital firms that invest in specific companies are typically called VCs.
