The Key Terms You Should Know | Startup School Flashcards
“What does MVP stand for in startups?”
“Minimum Viable Product”
“What is the key aspect of an MVP?”
“It must be viable and serve a purpose for the customer.”
“What is Venture Capital?”
“A form of investment where investors buy equity in startups, taking high risks for the potential of high returns.”
“Why do venture capitalists take on high risk?”
“Because a few successful investments can cover losses from the majority that fail.”
“Who is an Angel Investor?”
“An individual who invests personal funds in early-stage startups, often part-time.”
“Define profitability in the context of startups.”
“When a company makes more money than it spends.”
“Why is profitability important in scaling a startup?”
“Profit margins should either stabilize or grow as the company scales.”
“What is burn rate?”
“The amount of money a company spends monthly.”
“Why should founders monitor burn rate?”
“To ensure the company doesn’t run out of cash despite revenue growth.”
“What is a seed round?”
“The first significant amount of money a startup raises.”
“What is the difference between a seed round and Series A?”
“A seed round is less formal, while Series A typically has a lead investor who may take a board seat.”
“What is product-market fit?”
“When a product meets the needs of its market, and the company’s main focus shifts to scaling.”
“Why is product-market fit crucial for startups?”
“Without product-market fit, startups should focus on understanding customer needs before scaling.”
“What is bootstrapping in startups?”
“Starting a company without external funding, relying on personal funds or business revenue.”
“When is bootstrapping a good option?”
“When the business is not expected to grow very fast and large.”
