For any readers interested in this series of blogs, I thought I would compile a list of terms used along with explanations.

I try as much as possible to avoid using jargon, but just in case I have strayed to the dark side:

• Bootstrap – Enough money and facilities to get started
• Seed – Small investment to help a company startup
• Angel Investor – Provides small amounts of investment money AND advice to startups
• Venture Capitalist (VC) – Provides larger funding for startups that are seeking high growth in exchange for a shareholding in the company
• Shareholder agreement – A contract defining minor shareholders or investors rights
• Founder (co) – The creators of a business
• CEO – Chief Executive Officer, a term borrowed from the US which has no legal recognition in the UK. All officers of UK companies are called Directors. The most senior director is called a Managing Director. A Managing Director may choose to use the job title CEO. A Finance Director may choose the term CFO and a Technical Director may choose the term CTO. Chairman is the only legal officer position in the UK that does not carry the “Director” moniker.
• MVP – Minimum Viable Product (or Proposition) The most basic product or service that can be sold.
• Ramen Profits – Or Ramen Noodle Profits are when a company makes any profits at all, meaning it can afford to eat
• Term Sheet – A negotiation contract issued by a serious investor indicating the basic terms and conditions under which they will conduct further investigations into investment
• Equity – Value of a company, often defined by shares
• Unicorn – That mythical beast, a billion dollar startup
• Incubator – A supporting working environment which provides services, contacts and investment opportunities to early stage companies.
• Accelerator – A supporting working environment which provides services, contacts and investment opportunities to high growth companies
• Hub – A shared workspace that companies can use to work from
• Co-working – Another word for a Hub
• NDA – A non disclosure agreement, i.e. a confidentiality contract
• Mentor – An advisor, usually somebody that has gone through the startup process themselves
• B2B – Business to Business, or companies that sell to other companies
• B2C – Business to Consumer, or companies that sell to consumers
• Burn Rate – How quickly you are spending your cash, before making profits
• Deck – A basic business plan (normally excluding confidential details)
• Disruptive – A company or technology that changes the world.
• Exit Strategy – Does the company intend to sell out to a competitor or go public to make it shares tradable.
• IPO – Initial Public Offering, or floating the company on a public stock exchange to allow shareholders to trade their shares
• Tradesale – Selling your company to the competition
• IP – Intellectual Property, or the knowledge advantage you or your company has over its competition
• Pivot – To change direction if your company or product is not successful
• ROI – Return on Investment, or what investors can expect to receive in the future on the investment
• SaaS – Software as a Service, or when your product is software that provides a service such as online accountancy
• Traction – The measurable growth of your companies product or service