It means to start your startup without using external or venture capital funding. Most of the operations were fueled by the internal cash flow generated by the business or founders can also get their first cash from the three F’s that is Friends, Family, and Fools. So if you are proving your hypothesis and turning your startup into a successful venture without external funding, then you are bootstrapping.
A program that intends to accelerate the development of ideas or startup by proving mentorship, space to work, and support them to develop their concepts including a demo day. The infamous Y Combinator was the first accelerator program that started in 2005.
These are the same term used interchangeably with an accelerator which creates confusion. But the main difference is Incubation is the method of supporting a startup to boost its probability of surviving to turn into a more developed business. While Incubators are the rented space for the startup alongside with the business advice.
Accredited investors are able to invest money directly into the lucrative world of private equity, private placements, hedge funds, venture capital, and equity crowdfunding.
It is a phase in the economic cycle where an industry or a company overvalued or over-inflated its valuation. When a bubble burst, it means that a lot of startups in that bubble go burst and investors lose their money.
It is a rate that describes the amount a startup spends before it starts turning its cash flow positive. Most investors recommend that a startup should have at least 6 months of runway available at all time, that means if a company burning 1 lakh per month than you should have at least 6 lakh of cash available with you.
The annual rate at which the customers stop subscribing to a service or start moving out before you at least regain your average customer acquisition cost.
It is the cost that a startup spends on its marketing to acquire customers.
Crowdfunding is a method of raising capital through the collective effort of a large number of people including friends, family, customers, and individual investors typically through social media and crowdfunding platforms—and leverages their networks for greater reach and exposure in exchange you give a small percentage of the total raised to the crowdfunding platform.
Getting information or opinions for free from a large group of people via the internet. Social media, or using surveys.
A presentation that consists of all aspects of business in a concise and effective way, which is used to pitch your idea to investors.
Any new technology that creates a market value and forces the customer to think differently and then adopt that technology as the new norm, eventually disrupting the existing market.
Individual or group of individuals that first uses your product and will give you the most honest feedback that can give you a lot of exposure. They are typically the key influencers and social media.
Same as crowdfunding, but instead crowdfunding platforms want a fee and percentage to their investors.
It is a full-proof plan on how to liquidate your company or make exit to give your investors a return on their investment once a predetermined criterion has been met.
This is a very common technique to acquire customers nowadays, just give your basic service free of cost and charges for the additional features.
It is a gamification marketing technique to lure more customers as in this technique marketer adds an extra game layer with various kinds of rewards just to make their product look more attractive to the target audience.
It is a combination of marketing, data, and technology as the growth hacker uses these tools to quickly finding a scalable growth through non-traditional and inexpensive tactics as they have limited budget and resources. So every strategy you execute, every tool you implement, and every technique you develop they should all be aligned with your desire for growth.
Also referred to as the “J” curve, it is the commonly used expression by the investors to describe the shape of the growth curve they want to in the startup they invested in.
Think, design, refine, repeat till you get the successful product and that’s what defines iterate.
They will resist your new technology at the initial stages, but once proven they start linking it. So they are those group of customers, who joins the movement or buys much later than other groups.
It is an approach to building a startup by searching for the different business model and then test, investigate, experiment, and iterate their idea and also uses feedback from the potential customers to move forward. Speed is a key factor here.
Keep the price of your product or services low or give a free offer just to capture market share and once you acquire them keep on finding new ways to get repeated business from them.
A commonly used metaphor to quickly bring cash in the door by doing the easiest task first but leads to an accumulation of difficult task so better use this technique carefully.
The simplest form of your product with sufficient features to satisfy early adopters or to pitch for funding and the final only designs after the several iterations based on the feedback.
There should always be a plan B if play A doesn’t work. So when your Plan A doesn’t work you need to pivot to plan B. This is also a very crucial moment in the life of a startup as it decides the success or failure.
This term means that a startup is only making enough money to bear its basic expenses and this is different from profitable which means the business is paying off in big ways.
A web graphic user interface design approach that allows website pages to adjust smoothly and render on a variety of devices and screen sizes by automatically adapting the screen, whether it is a smartphone, desktop, tablet, or laptop.
A term that describes how long your cash will last and when it going to exhaust. It is very important to know your runaway as founders should start pitching for the investment to keep going before running out of cash.
A common practice in the startup world before funding arrives as in the initial days’ founder give shares of the company to early employees or contractors in exchange for resources they will provide rather than cash.
It is a legal document that will prepare when an investor makes an offer to invest in the company. This document consists of all the legal proceedings including percentage ownership and voting rights in exchange for the amount they give.
A proof that your measurable set of customers that serves to prove to the potential investor that your hypothesis is working and people are actually liking the product or services. It is also one of the most exciting phases of a startup in the initial days.
Those startups which get the valuation of more than $1 Billion like Oyo, Paytm, Unacademy, etc.
Describes how much your startup is worth in the market or to the investors. Two types –
It’s the first thing that customers encounter when exploring your brand as it refers to as the value, a startup promise to deliver to its customers. It is a part of the company’s overall marketing strategy and is also sometimes referred to as USP (Unique selling points). This is what makes your company unique and attractive.