A Guide to the Venture World: 10 Terms Every Startup Founder Should Know
In previous articles, we covered 20 key terms, explained who is who in the startup ecosystem, and how venture funds and business angels work. In this article, we continue sharing important concepts that every startup founder should know.
Author - Mansur Ismagulov
The Tech AI
Get the key points in seconds - a short summary from The Tech AI.
Unicorn — a private company valued at $1 billion or more, Decacorn — valued at $10 billion or more. Soonicorn — a growing startup with the potential to become a unicorn. Valuation — the estimated value of a company. IPO — initial public offering. Scale-up — a company in the scaling phase. Pitch Deck — a presentation for investors. Fundraising — attracting investment. Bootstrapping — development through self-funding. Crowdfunding — collective financing through online platforms.
- Unicorn
A private company valued by investors at one billion dollars or more. Such startups are considered rare and highly successful.
- Decacorn
A decacorn is a company with a market valuation of $10 billion or more. The term is used to denote the most valuable private technology companies.
- Soonicorn
A soonicorn is a startup in the active growth stage with high potential to become a "unicorn" in the near future.
- Valuation
Valuation is the process of assessing the value of a company or startup, which plays a key role in attracting investment and determining stakeholder shares.
- Initial Public Offering, IPO
This is the initial public offering of a company's shares on a stock exchange, at which point the company becomes publicly traded for the first time.
- Scale-up
A scale-up is a company that has passed the startup stage and is in the business scaling phase with steady growth in performance metrics.
- Pitch Deck
This is a brief presentation of a startup to potential investors, containing information about the product, business model, team, target market, and financial performance.
- Fundraising
Fundraising is the process of attracting investments or grants to finance a startup or business project.
- Bootstrapping
Bootstrapping is the development of a company using the founders' own funds without attracting external investments.
- Crowdfunding
Crowdfunding is a method of collective project financing through a large number of small contributions from a wide audience via specialized online platforms.
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