Are terms like crowdfunding, design thinking, and product–market fit unfamiliar to you? Are you a startup founder or just planning to enter the world of business? Do you sometimes pretend to understand what colleagues, partners, or investors are talking about?
The startup world uses a lot of jargon and foreign expressions in everyday business. As a startup founder, it is very important to know what you are talking about, especially when communicating with investors who may potentially invest in your business.
That is why we have prepared a startup dictionary with more than 50 terms. This guide will give you better insight into and understanding of startup language.
Startup dictionary
A project management methodology that enables flexibility in scope, resources, and product development. An agile approach assumes that development must adapt to frequent changes.
A startup whose business model and core product value are built around artificial intelligence. AI is not just an additional feature but a key component of the product and its competitive advantage.
A cohort-based program for scaling startups in which developing companies receive mentorship, investment, and knowledge that help them grow quickly. In return, accelerators usually take equity in the company. Unlike incubators, accelerators are time-limited programs (usually 3–6 months) with a clearly defined goal—preparing startups for investment or market entry.
The process by which one company or investment group purchases another company.
Technology that enables computer systems to perform tasks that normally require human intelligence, such as learning, data analysis, pattern recognition, and decision-making. In the startup context, AI is used to automate processes, personalize user experiences, and develop new products.
This abbreviation describes a business model where the customer segment is another legal entity (company) that purchases a product or uses a service.
This abbreviation describes a business model oriented toward consumers to whom a company sells its products or services.
This abbreviation describes a business model in which a company sells its products or services to public authorities, government institutions, or other public sector organizations (e.g., ministries, agencies, cities, and municipalities). Cooperation usually takes place through public procurement, tenders, and legally regulated contracting procedures.
An unpredictable, extremely negative event or circumstance that cannot be anticipated. Examples include crises such as the 2008 financial crisis, wars, or natural disasters.
A way of developing a startup in which companies decide to grow organically and independently rather than using funds from external investors. It involves maintaining low costs and using personal investments and/or company revenue to drive growth.
The process of testing key assumptions of a business model to prove that a startup can generate sustainable revenue. It includes testing pricing, distribution channels, customer segments, and cost structure.
The cost of acquiring a new customer. It includes all marketing and sales expenses divided by the number of new customers acquired in a specific period. CAC is one of the key indicators of a sustainable business model and is often analyzed in relation to CLV (Customer Lifetime Value).
The total value that a single customer generates for a company throughout the entire duration of their relationship with the company. A sustainable startup model assumes that CLV is significantly higher than CAC.
Short for Creative Technology, referring to a new approach that combines design and technology. This concept arises from the interaction of technology, art, design, and behavioral and emotional insights to create unique user experiences.
Raising money for a project or venture through small contributions from a large number of people via crowdfunding platforms such as Crowdcube, Seedrs, or Kickstarter. There are several crowdfunding models: donation-based, reward-based, equity crowdfunding, and lending-based.
A method of testing potential users’ reactions to a product idea before it is built. Concept testing uses surveys, interviews, and prototypes to evaluate market demand and reduce development risk.
A financial instrument often used in the early stages of startup funding. It is a loan that can later be converted into equity in the company when a certain funding level is reached.
The process of involving a wider community (usually via the internet) in solving a specific problem, developing an idea, or gathering content. Unlike crowdfunding, crowdsourcing primarily refers to leveraging community knowledge, ideas, or resources rather than raising money.
A structured approach to researching customer problems and needs through interviews, observation, and behavioral analysis. It is part of the broader customer development process.
A phase in which a startup tests the market’s willingness to buy its product. It includes validating pricing, sales channels, and early traction.
An event where startups that have completed incubation, pre-acceleration, or acceleration programs present their startups to expert juries and/or potential investors. You can read more about the Demo Day of the Forward to Health Innovation program organized by Smion, EIT Health, and the University of Zagreb here.
A short presentation that clearly and concisely covers all aspects of a business: problem, solution, market, business model, competition, team, and financial projections. A well-prepared pitch deck is a key tool in the investment fundraising process.
Technology startups developing solutions based on scientific discoveries and advanced engineering innovations (e.g., biotechnology, quantum computing, space technologies). Deep tech projects usually require larger initial investments and longer development cycles.
A method for creating innovative products, organizational solutions, and innovation culture. It helps organizations become and remain agile and innovative like startups. Regardless of the business challenge, design thinking begins and ends with the user. The process includes five key steps: empathizing with users, defining the problem, ideation, prototyping, and testing in real conditions.
An employee or entrepreneur who uses digital technologies to perform their work and is therefore flexible regarding work location.
An innovation or technology that disrupts an existing market by redefining the value offered to customers. The theory was introduced in the book The Innovator’s Dilemma by Clayton Christensen.
A 15-minute time-boxed event used by teams to synchronize activities and plan the next 24 hours. It involves reviewing progress since the previous daily Scrum, assessing work that can be completed before the next meeting, and discussing potential obstacles.
Social entrepreneurship applies business strategies to maximize financial, social, and environmental benefits. A related concept is ecopreneurship, which focuses on identifying business opportunities that both restore the environment and generate profit.
Strukturirani program (pre-accelerator ili startup bootcamp program) namijenjen ranim fazama razvoja startupa s ciljem validacije ideje, razvoja MVP-a i pripreme za investiciju.
A person within your organization who becomes the “first fan” of your company. They are so enthusiastic about the company that they often go beyond their role to promote it.
A short and persuasive presentation of your business or product. The concept is based on being able to explain the value of your company or product in the short time it takes to ride an elevator—about 20–30 seconds.
Ownership in a company that grants the right to participate in profits and influence decision-making.
A model of hiring experienced professionals on a part-time or project basis. It allows startups to access high-level expertise without the cost of employing senior executives full time.
A revenue model where the basic product is offered for free while additional features are sold to customers. It is a common and proven strategy for acquiring users in SaaS startups.
A subset of artificial intelligence that generates new content—text, images, code, video, or audio—based on trained models. Generative AI significantly reduces development costs and accelerates MVP creation.
Marketing techniques focused on rapidly finding scalable growth through unconventional advertising methods.
One-day or multi-day events organized to develop software solutions for a given problem. Participants often include programmers, designers, project managers, and other stakeholders involved in developing technological products. The goal is to develop a functional software or hardware product by the end of the event. There are also business hackathons aimed at designing part or all of a business model for a proposed product or service. You can read more about the EUSparks Climate Hackathon implemented in Croatia by Smion here.
A systematic process of verifying a business idea through market research, customer discovery, and MVP experiments before entering the market.
An investment approach where investors seek measurable social or environmental impact in addition to financial returns. It is particularly relevant for startups in sustainability, healthcare, and social innovation.
A support system for launching early-stage companies that provides guidance, training, and workspace. Support may be offered free of charge by non-profit organizations or universities, or on a for-profit basis in exchange for fees or equity. Read more here.
Rights to innovations, including patents, copyrights, trademarks, and trade secrets.
The process by which a private company sells its shares to the public for the first time via the stock market.
A strategic plan for selling a company to an investor or another company, where the business ceases to operate as an independent privately owned venture. It is the moment when investors can liquidate their position and realize returns.
A privately owned technology company valued at more than one billion dollars. The term reflects its mythical rarity. Currently, Croatia has two technology unicorns: Infobip and Rimac.
Measurable values that show how effectively a company is achieving its key business objectives.
The process of improving user satisfaction with a product by enhancing usability, accessibility, and the overall interaction experience.
The point of interaction between a user and a computer system.
A version of the business model designed specifically for startups, allowing for quick testing and iteration of business ideas.
A methodology inspired by the lean manufacturing systems of Japanese production, popularized by Eric Ries. The lean startup framework focuses on building a company or product by shortening the product development cycle and discovering the sustainability of the business model. This is achieved by eliminating waste in the development process through early user involvement and rapid iterations.
A term used for simple and easily solvable tasks that contribute to success or progress.
An analysis of market demand that evaluates market size, customer needs, and competition to assess a startup’s growth potential.
Evidence that there is real market demand for a product, often demonstrated through early sales, pre-orders, or growth in the user base.
The process of confirming that there is real demand for a product in a target market. It includes market research, concept testing, and collecting user feedback.
Structured steps for testing a market opportunity, including defining the target segment, testing messaging, and measuring customer interest.
Market research focused on gathering data about customer needs, competitors, and potential demand.
One of the core principles of the lean startup methodology. It represents the simplest version of a product that satisfies the basic needs of early users. An MVP provides the maximum learning about customers with the minimum amount of resources. It is not an unfinished product but a strategic tool for learning and market validation.
The process of generating revenue from assets, products, or business activities.
An approach to developing digital products with little or no programming by using visual tools and prebuilt modules. It enables faster idea testing, MVP development, and market validation without large technical resources.
The net amount of cash and cash equivalents moving into and out of a business. Cash flow can be positive (more money coming in than going out) or negative (more money going out than coming in). The cash flow position determines whether a company can cover its expenses and remain operational.
A significant change in a startup’s value proposition while maintaining the same long-term vision. Pivots are based on data, user feedback, and hypothesis testing results.
An economic model based on digital platforms that connect two or more user groups (e.g., buyers and sellers). Examples include marketplace platforms, ride-sharing apps, and SaaS tools with integration ecosystems.
A private investor who invests personal funds in early-stage startups, often in exchange for equity. Unlike venture capital funds, angel investors usually invest smaller amounts but often provide mentorship and access to networks.
A description of how an organization creates, delivers, and captures value in the form of revenue. It includes elements such as customer segments, value proposition, distribution channels, customer relationships, cost structure, key activities, resources, and partners.
The key characteristics and benefits that make your target customer want to buy and use your product or service.
A stage of startup development where it is validated that a problem exists and that the proposed solution fits the problem.
The process of determining a company’s value. An analyst will consider factors such as capital structure, the management team, and revenue or potential revenue.
A growth strategy in which the product itself drives user acquisition, conversion, and retention. It often includes a freemium model, simple onboarding, and a strong focus on user experience.
Faza razvoja startupa u kojoj je potvrđeno da startup ima održivi poslovni model i spreman je za skaliranje. Znači biti na dobrom tržištu s proizvodom koji može zadovoljiti to tržište.
Early adopters are the first users of your product or service. They are usually individuals eager to embrace innovation to solve their problems. They provide honest and direct feedback, crucial for product development, and often promote your product within their networks.
A framework for building startups based on discovering, validating, building, and scaling a business model. It runs parallel to product development.
A way of automating business processes to improve efficiency by reducing costs, preventing errors, and speeding up execution. RPA is implemented by integrating software robots into regular business processes.
The amount of time a startup can operate before it runs out of money. It applies to startups that are not yet profitable and rely on investments or financial reserves. Monthly expenses are known as the burn rate.
A software licensing and delivery model where software is provided through a subscription. Unlike traditional software sold as a one-time license, SaaS providers charge recurring monthly or yearly fees that include hosting, maintenance, updates, and customer support.
Someone who starts multiple companies or projects either simultaneously or one after another.
The initial stage of startup financing, typically used for market research, MVP development, and gathering early user feedback.
The exponential growth of a startup where company revenues significantly exceed costs.
A process in which two or more companies combine into a single entity, either through acquisition or by forming a new legal organization.
The core of Scrum, a time-limited period during which a completed, usable, and potentially shippable product increment is produced. Sprints are of consistent duration throughout the product development process, with each new sprint starting immediately after the previous one. A sprint consists of sprint planning, daily Scrum, development, sprint review, and sprint retrospective.
A company in its early stages of operation that is searching for a business model. Startups usually aim to solve a problem, meet a need, or satisfy a user’s desire through innovation and new technologies. A company remains a startup until it finds a sustainable business model. Unlike traditional small businesses, startups are focused on rapid growth and innovation.
A network of entrepreneurs, talents, startups, scaleups, corporations, investors, support organizations, and academic institutions whose interactions enable the creation and growth of new companies.
The process of developing an entrepreneurial idea includes defining assumptions, testing them, and validating the idea. At Smion, we developed a unique system called the “Startup Drill Board,” which simplifies idea development and allows faster and easier testing of risky business assumptions.
The net monthly loss, or the rate at which a startup spends its venture capital to cover operating expenses before generating positive cash flow.
The monthly or annual rate at which customers stop using a product or service, resulting in lost revenue.
One of the most critical phases in the product development process. It tests assumptions and hypotheses regarding the customer’s problem, target market, and product.
The total market opportunity available to a startup, i.e., the maximum value a company can achieve if it realizes its full market potential.
A non-binding document that outlines the key terms between an investor and a founder before an official investment. It encompasses financial terms, ownership conditions, and investor rights.
The process of converting assets or rights (e.g., shares, real estate, intellectual property) into digital tokens on blockchain infrastructure. It enables easier trading, fractional ownership, and global access for investors.
Pokazatelj da startup ostvaruje rast i da njegovi proizvodi ili usluge privlače korisnike. Traction može uključivati rast prihoda, broja korisnik ili drugih ključnih performansi.
Learning about business model assumptions through experiments with users.
Investment provided by venture capital funds to small, high-risk startups with strong growth potential. VC funds invest across different stages—from seed to growth.
A systematic method of creating new companies and supporting their growth. Organizations involved in venture building typically focus on idea identification, team formation, capital sourcing, venture management, and providing shared services.
The process through which founders and employees earn ownership shares over time. Shares are usually granted gradually, often with conditions such as a minimum employment period (a cliff), typically lasting one year. Vesting usually spans four years.
Koncept decentraliziranog interneta temeljenog na blockchain tehnologiji, pametnim ugovorima i digitalnom vlasništvu. Web3 startupi grade rješenja bez centralnog posrednika, često koristeći tokene i decentralizirane aplikacije (dApps).
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