50 Startup Terminology Every Founder Needs

Every founder must understand and use important startup terminology in the day-to-day operations of their company. One of the requirements for being a businessman is to become acquainted with and confident with the company and startup terminology in this context.

Whether technical or non-technical, the most pleasing people in business can wear several hats and speak multiple languages, whether with the accounts department, coders, designers, advertisers, business strategists, or other departments.

Startup Terms

1. Founder

Anyone may start a business by creating a website and business flyers. A doer is what a true entrepreneur is. It doesn’t matter how significant an influence or how much success you can achieve as long as you take action. Indeed the founders are the ones who put things into action.

 2. Wantrepreneur

A wantrepreneur is someone who has a lot of ideas but doesn’t know what to do with them. They are always planning to establish a startup app, regardless of whether they possess scientific or non-technical experience; they have several ideas but have yet to begin.

startup terminology

Many would-be entrepreneurs remain so. Finally, make sure you’re not want to be an entrepreneur!

3. Non-technical

Founders of technology firms are frequently divided into two categories: technical and non-technical. Non-technical entrepreneurs are more likely to be from the business or marketing world, also it’s not that technical entrepreneurs can’t sell! Someone with programming experience or training themselves to code is known as a technology entrepreneur.

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4. Validation

There are a variety of indicators that a concept has been validated, but at the end of each day, it’s about demonstrating that there is a market for the products. When consumers pay for an item, use it, then promote it to someone else with comparable needs, this is one of the most incredible validation signals.

5. Accelerator

If you’re starting a business, accelerators can assist you in getting your concept off the ground quickly by offering coaching and financing opportunities over a few months.

6. Incubators

Unlike accelerators, incubators typically provide longer-term advice, including coaching, connections, and resources like a co-working space.

startup terminology

Accelerators emphasize pace and finance, whereas incubators typically take on earlier-stage firms and assist them in overcoming early-stage problems.

7. Unicorn

Only a few firms attain and surpass a billion-dollar valuation, which is known as a unicorn. Unicorns are the name given to these types of businesses.

8. Scalability

Every startup aims to create a sustainable business model. A startup brand may support hundreds or even thousands of consumers without requiring a similar number of service suppliers because of technology and automation.


It is said to be scalable when a company establishes and verifies a recurring business model that answers the customer’s needs all-around time.

9. Dragon

One of the startup terms you need to know is a dragon. Even fewer firms raise more than one billion dollars in a solitary phase of funding, and dragons are what they’re called. One of these businesses is Uber.

10. Self-funding

More than 90% of startups are self-funded. In reality, I would suggest that nearly all entrepreneurs begin with their cash, particularly now that the fundraising bar is being raised. Bootstrappers are entrepreneurs who use their resources and savings to establish and build a business without the need for outside funding. A businessman can also bootstrap the beginning phase of their business before raising money for expansion. Furthermore, the majority of founders took this route.

11. Iteration

An idea is nothing more than an educated estimate at the end of each day. What are the chances that entrepreneurs will always get it right? Iteration occurs when you recognize that a tiny adjustment to the item, the target customer, or any other significant part of the company model is required.

12. Disruption

Founders who focus on creating goods and business prototypes that initiate an advancement that makes a significant distinction in the industry and the world are what shareholders pay attention to in a startup. Consider Uber, which has fundamentally transformed how people commute.

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13. MVP

A businessman should be aware of the basic startup terminology. Entrepreneurs are urged to construct a minimum viable product (MVP) to evaluate ideas quickly without investing a lot of money in a business that may or may not succeed. The early versions of the item, which only comprise the essential functions, are designed to verify the riskiest assumptions before moving on to more complex arrangements.

14. Pivot

Sometimes we’re sure the plan is correct, only to find out later that it isn’t. You’re pivoting when you execute a significant change to your business models, such as how you make money, your ideal client profile, or the remedy (product). Even if they’ve invested a lot of time and money getting the newest version right, businesspeople must be receptive to variations and pivots. As a result, wasting too much time and money evaluating ideas or multiple variants of a product is not a good strategy. Instead, swiftly construct, test, and change.

15. Agile

The agile approach concentrates on the development aspect of the build-measure-learn loop. It comprises constructing progressively and progressively while testing swiftly, whereas lean defines the commercial side of the cycle.

16. Growth Hacking

An effective marketing effort achieves its goal at a cost that is less than the return on investment. Development hackers employ unusual ways to drive massive increases at a fraction of the expense of the “normal” amount required to get the same results.

17. Evangelists

Throughout the item adoption lifecycle, different types of purchasers embrace the product at various times. Early adopters are known as evangelists because they initially trust in the item and persuade others to do so.

18. The Chasm

Many firms succeed in attracting innovators, but they fall short of capturing the rest of the economy. The chasm is the distance between visionaries and the rest of the population.

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19. Acqui-hire

A startup’s crew is one of its most important assets, especially in its early stages. It’s not easy to put together a motivated startup group with people who have complementary abilities.

acqui hiring

Hence, many large corporations choose to acquire smaller businesses or startups solely for the human resources (team) they have built, and Acqui-hire acquisitions are what they’re termed.

20. Business development

There are two essential functions in a technology startup at a top standard: business development and product development. The product’s development and improvement are the responsibility of the technical developer. Whether it’s relationship development or strategic planning and implementation, the non-technical entrepreneur takes on the business role. Business developers are more common among non-technical founders. So, this is also one of the startup terms.

21. Consumer products

This can also characterize in terms of B2C and B2B relationships. Consumer products are created by businesses that sell to consumers. Individual buyers, not companies, purchased and used the things. Apple, for example, produces the iPhone, which is a custom item. Uber also has a consumer offering, while it has expanded to provide enterprise solutions in recent years.

22. Product/Market fit

Product/Market Fit (p/m fit) is defined in various ways, and it is also an important startup terminology. You’ve reached p/m fit when your client acquisition cost is less than their lifespan value. Current customers recommend purchasers similar to them, reducing your acquisition price and boosting your net consumer score.

23. Cache

You may well have a list of web pages that you visit often. The cache is utilized by many of these sites to save previously used data for quick access. When you visit the same website in incognito mode, you may see the change.

24. Traction

The review of your primary metrics is known as traction. Investors will assess the investment possibility by looking at your traction throughout time. You may gain traction as a startup entrepreneur even before producing a product. Inbound marketing is a typical and effective technique to gain traction.


Before releasing the first edition of their apps, businesses like Buffer and Robinhood amassed a list of tens of thousands of prospective consumers.

25. Inbound marketing 

Inbound marketing is a type of marketing that attracts customers. This is when you develop relevant material for your ideal clients that ranks well in search engines and drives traffic to your website.

inbound marketing

You can distribute your material via writing guides, generating informative clips and training, publishing podcast segments, and creating infographics. It takes time, but it pays off in the long term.

26. Outbound marketing

Inbound marketing necessitates a time investment.

outbound marketing

Whereas outbound marketing necessitates a cash commitment, as it comprises charging networks such as Facebook, Google, and LinkedIn to promote your item to customers.

See Also: How to Invest in a Small Business: Tips

27. KPI 

KPI refers to key performance indicators used to assess a startup’s success, progress, and goals. Also the most prevalent KPIs are client acquisition cost, customer lifecycle value, and monthly and yearly recurring revenue.

28. Bounce rate

A metric that counts how long users stay on a website before departing. The aim is to have a minimal bounce rate, which indicates that the information or capabilities of the website value the time of users.

29. Activation

Most SaaS firms provide a complimentary trial duration or a freemium package. The business will only profit if users renew their membership once the trial period has ended. The objective is to enhance activations, and there are a variety of approaches that can assist you in achieving this. A solid onboarding procedure, for example, makes an impact.

30. A/B testing

You might run a trial with various call-to-action or copy variants to see what might optimize critical metrics. A/B tests are what they’re called startup terminology. Many systems now allow you to run A/B testing with the touch of a key.

31. Post-money valuation

After a round of investment, the valuation of a startup usually rises or falls. It falls if the new fundraising round gives the firm a lower value than before it was financed. Divide the funding dollar figure by the proportion acquired by the donor in the firm to arrive at a startup’s post-money estimate.

post money valuation

The business’s post-money value less the dollar figure committed in the company is the calculation for pre-money value.

32. Cliff

A cliff period is often used to force share options holders to stay with the firm for at least one year until they can receive a portion of their shares. Employees’ objectives will align with startup progress through vesting and cliff periods.

33. Revenue

Revenue is the money you make before incurring expenses, and it appears at the head of your financial report. Because costs, particularly in the initial stages, might be much higher than the quantities generated, income as a standalone indicator is not adequate for startup success.

34. Income

Revenue is a higher performance statistic for assessing a company’s sustainability and health. After subtracting expenses from revenues, the difference is the amount of money you keep in the company to reinvest or withdraw. Even at a deficit, high income can, on the other side, indicate potential.

35. Vesting

To assure investors and workers’ long-term dedication to the firm, vesting plans require share options holders to be involved in the company for a defined amount of time, usually four years, before they could even claim their shares.

36. User interface

The layout of a program as viewed by the user may refer to as the user interface. The user interface is also a startup terminology to know about.

37. User experience

User experience refers to how the layouts of several web pages and parts of an app work together to offer users an encounter that aids them in solving the issue or achieving the objective for which they use the app.

38. Usability

Under the umbrella of customer experience, usability refers to how an item can utilize successfully and efficiently, letting people get the desired result with optimal ease of use.

See Also: Definition of PEO for Small Businesses

39. Accessibility

Usability and availability are inextricably linked. Usability concerns how simple it is for the client to complete their task using the app.

startup terminology

In contrast, accessibility is concerned with the convenience of accessibility to the app’s various pages and essential features.

40. Wireframing

Before beginning to build a website or mobile app, a framework of the item should produce to serve as a blueprint for the architect to follow. It’s also a crucial stage in ensuring that team members at a company are on the same page about the expected outcome.

41. Interaction design

One of the startup terms one needs to know is Interaction design is a subset of user experience design that focuses on creating things with the consumer. Product design enables consumers to execute something on the internet in the most efficient manner.

42. Operating system

Every piece of software requires hardware to operate and communicate with the client. Operating systems allow the software to run on hardware despite regard for its running on.

43. Stack

To construct a comprehensive web or mobile solution, programmers need to have a tech platform that comprises computer languages, frameworks, instruments, and databases. It’s a collection of technologies you’ll need to create and deploy a working app.

44. QA

Teams conduct quality control tests to ensure that the created app works perfectly and fulfills expectations. QA tests come in a variety of shapes and sizes, additionally, the user tests can determine by the application, phase, and other factors.

45. DevOps

DevOps is a technique that integrates software development and IT management to produce quicker and more convenient development processes.

46. Front-end

Front-end is a startup terminology in which the client views the front-end while engaging with an app.

47. Compilers

Compilers transform computer languages into machine language that a machine can understand, and a decompiler does the reverse case.

48. API

A programming interface is necessary for a program to connect with the other.


An API is a link that allows two apps to communicate with one another.

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49. Framework

A technology framework collects code and integrations that make the development process more manageable.

50. Concurrency

Concurrency allows the software to accomplish multiple activities simultaneously for speed and accuracy.

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