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VC Glossary

Every term founders need to know, explained simply.

AllFundraisingLegalMetricsOperations

A

AcceleratorA fixed-term program that provides startups with mentorship, education, and seed funding in exchange for a small equity stake.OperationsAngel InvestorA high-net-worth individual who invests personal funds in early-stage startups, often providing mentorship alongside capital.Operations

B

BootstrappingBuilding and growing a company using personal savings and revenue, without external investment.Operations

E

ExitThe event where founders and investors realize returns on their equity, typically through an acquisition or IPO.Operations

I

IncubatorAn organization that supports early-stage startups with resources, workspace, and guidance over a flexible, longer-term period.Operations

M

MVP (Minimum Viable Product)The simplest version of a product that can be released to test a core hypothesis with real users.Operations

P

PivotA fundamental change in a startup's business model, product, or target market based on lessons learned from the market.OperationsProduct-Market FitThe point at which a product satisfies strong market demand, evidenced by organic growth and high retention.Operations

S

Series A / B / CNamed funding rounds that mark a startup's progression from early product stage (A) through growth (B) to scale (C).Operations

V

Venture CapitalA form of private equity financing where funds invest in high-growth startups in exchange for equity, expecting outsized returns.Operations

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