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Glossary: Master the language of the Founders

If you are a startup who wants to obtain capital, understand from A to Z the founder ecosystem.

Bizrupt

Bizrupt is an accelerator of founders for founders, who invests in tech startups at early stages.

Business Angel

Investor with abundant capital for startups financing, which in addition to contributing, seeks to become a partner of the company. Some also fulfill the task of transmitting their "know-how" and experience to new generations of entrepreneurs.

Cash flow

All cash inflows and outflows, during a certain period. There are three types: the operating cash flow, which is the cash obtained by the commercial activities of a company; the investment cash flow, which is the cash received based on the capital investment expenses, and the financing cash flow, which is the cash received from financial activities (loan payments, issues or repurchase of shares).

Churn rate

The loss rate of clients and / or users, during a certain period.

Crowdfunding

It's a financing modality distinguished for being collective. It works through targeted platforms that raise funds for thousands of people to enter as investors and finance the published projects with small amounts of money.

Reward Crowdfunding

The "patrons" willing to finance a given project receive a tangible item or service in exchange for the money invested. It is very common for artistic projects such as records creation, films or short films. It can be offered to be listed in the credits, or to have the disc as a gift when its published.

Drag Alone

It is a clause that regulates investments decoupling in a society or project and the possible departure of investment partners or the majority shareholder of such society. This clause applies when a third party makes an offer to purchase the society for the entire share capital: the partner who "drags alone" may force the rest to sell their shares to the buyer. Guarantees the negotiation of the sale (of the whole society) and that no minority shareholder can refuse such sale.

Founder

Person or organization who boosts business entrepreneurship with capital and / or knowledge

Gap

Gap analysis examines differences between current management and the company's objectives. In other words, where are we and where we want to be.

Growth Hacking

It is a marketing trend that involves programming processes, creativity, critical thinking and web metrics that some startups already use to position their products and increase their exposure.

Freemium model

It is a growth hacking technique common used by startups. Consists in offering a free version of their products with some limitations that can be solved with payments or subscriptions (examples: Linkedin, Dropbox, Spotify).

Scaleup

It is a company that started as a "startup" and achieved annual sales growth of 20% for more than three consecutive periods, after managing expansion, reaching new markets and customers, and implementing improvements in its products or services. They are also Scaleups if the financing reaches more than one million dollars.

Seed Capital

Initial investment or at early stages of an enterprise.

Startup

Experts define a Startup as a large company at an early stage; unlike an SME, the startup is based on a business that will be faster and easier to be scalable, using technologies. The term only applies when the project is at startup. Once it has escalated, it will no longer be called a Startup.

Tag Along

It is a clause that regulates investments decoupling in a society or project that protects minority shareholders within it, granting them the right to sell their shares when a majority shareholder or shareholder sells their own. This act allows the minority shareholder to join the transaction under the same conditions as the majority shareholder that sells its shares.

Unicorn

It is the word used in the argot of technology / entrepreneurship / capital funds world to describe a startup that has reached or exceeded a valuation of one billion US dollars.

Venture Capital

It is the granted investment for startups that have long-term growth potential.

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