Start-up Lingofor

DummiesStart-up Lingo

for

DummiesHate it or love it, start-up lingo is here to stay.

And if you wanna “disrupt” the IT industry, knowing these words wouldn’t hurt (we promise).

Crowd–sourcingObtaining needed services, ideas, or content by soliciting contributions from a large group of people, especially from an online community, rather than from traditional

employees or suppliers.

1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25

Angel Investors (Micro VCs)

Angel Investors invest anywhere between 2 lacs – 2 crores. They don’t just bring money to the table but also bring experience, connections and act like a mentor in the

early days of a Start-up.

1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25

PrototypeA prototype deals with the technical content of the product: various aspects of the

product that would be required for a usable, marketable product are omitted in order to reduce development cost. The goal of developing a prototype is to show potential

investors/ partners/ customers how the product would work at minimum cost.

1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25

These are groups of angel investors that cover a broad spectrum of industries asdifferent angels invest in different industries. Angels have their preferred industries

depending upon their experience/ connections/ exposure/ opportunity overview.

Angel Investor Networks

1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25

Venture CapitalistsVCs come into picture after a startup has demonstrated a fair amount of market acceptability and needs a large amount of capital to make capital investments in

infrastructure, supply chain, sophisticated technology, human resource or expand in newer markets and somewhat move into the league of relatively large companies.

1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25

Minimum Viable Product (MVP)

Minimum Viable Product is a working product with no bells and whistles, which is just about good enough for it be to be rolled out in the market, get initial feedback

from real paying customers and hopefully gain some traction.

1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25

Incubators VS. AcceleratorsIncubators are suitable for development of products and technologies, which require

longer period of research and development and inputs from a wide spectrum of innovators/scientists/researchers. For e.g., innovations in Biotech, Medtech and/or Greentech need years of R&D effort and are more complex than building software

products or applications. Incubators generally don’t offer any funding or take stakes either and are funded by the government or academic institutions.

Accelerators, on the other hand, work on the principal of building quickly, failing faster and hitting the market again with a better product. Accelerators offer access to

360-degree business services, mentors who have expertise in go-to-market strategies.Accelerators extend support for a short term, offer funding, take stake and hope for

profitable exits.Footnote: In India, both the terms are used interchangeably but incorrectly.

1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25

AngellistAngellist is a platform for startups to connect with investors, talent and incubators.

Founded by Naval Ravikant and BabakNivi, a profile on angellist is considered to be a must for every Startups worth its salt.

1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25

Viral / Viral MarketingA method of product promotion that relies on getting customers to market an idea,

product, or service on their own by telling their friends about it usually through social networks or e-mail.

Viral marketing is the cool new term for ‘word-of-mouth’ advertising.

1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25

Responsive Web DesignResponsive web technology, which re-sizes text and images to fit any screen has

become the norm for new websites. As tablets are replacing magazines on your coffee table, and smart-phones are replacing portable computers, you need to make sure that

your content can be viewed, shared, and bought on new mobile devices.

1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25

Using game-thinking and game mechanics in business applications for marketing, to enhance user engagement, accelerate revenue flow, and expedite application learning.

Rewards range from becoming the “mayor” of an entertainment location viaFourSquare, to winning badges via a Badgeville campaign.

Gamification

1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25

PivotA quick change of direction or strategic correction by a startup, often based on customer feedback as well as changes in technology and/ or the marketplace.

1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25

This is the youngest demographic, people born after 1995, who are sought-after by all new businesses. Gen-Z members have grown up in an un-tethered world of

smart-phones, tablets and WIFI, and their perspective is both multi-cultural and global. They have never seen a world without the Internet, and they now have

real spending power.

Gen-Z

1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25

A period of time an investor holding a right to a company must wait until they are able to fully exercise their rights. Essentially, earned ownership over time.

Vesting Period

1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25

Burn RateThe speed at which a company’s cash balance is going down.

“We’re burning 1,00,000 per month.”

1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25

Hockey Stick (Inflection Point)

A period of rapid growth (in revenue, sales, etc.) that, when graphed, resembles the shape of a hockey stick.

1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25

HackathonWeekend or daylong competition where guys with business ideas and coding skills jam

to create software products, these are often prototypes.

1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 18 19 20 21 2217 23 24 25

A non-binding agreement between the founders and the investor/s which lays down basic terms and conditions under which an investment will be made.

Termsheet

1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25

The response demonstrated by your product in the market. It is represented by the number of users, downloads and/or website hits.

Traction

1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25

The value VCs place on a company’s stock prior to investing.

Pre-MoneyThe pre-money valuation plus the

amount invested.

Post-Money

1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25

Seed RoundThe first round of funding that helps finance the initial stages of a new venture. A seed

round is hopefully followed by an even bigger Series A round.

1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25

EcosystemStart-up ecosystem is a confluence of success stories, talent, education, events, mentors, incubators & accelerators, and investors in a certain geography, which defines the support structure that exists for startups emerging in that location.

1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25

Ramen-ProfitableA startup that proclaims to be cash-flow positive, but actually makes just enough

money to cover basic expenses, such as toilet paper, running water and instant ramen noodles for survival (no salary for the founders). It buys you time and credibility with

investors, until the big bet really starts to pay off.

1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25

Disruptive (Innovation)

An innovation that goes on to disrupt an existing market and value network (over a few years or decades), displacing an earlier technology. These innovations that

improve a product or service in ways that the market does not expect.

1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25

1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25

LeverageOften used as an equivalent of “use”, the correct meaning involves use of credit or

borrowed funds to improve one's speculative capacity and increase the rate of return from an investment, as in buying securities on margin.

/NasscomForStartUps /nasscomstartups /nasscomstartups/ /10000startups

Join the 10,000 Startups revolution.

A PRESENTATION BY

SPONSORS

Register on www.10000startups.com