Startup Fundraising Glossary

Navigate the world of startup financing with confidence

Explore a glossary of essential terms in startups, startup fundraising, bootstrapping and entrepreneurship. Decode the terminology and jargon with ease.

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Market PenetrationMarket Penetration is the extent to which a product is recognized and bought by customers in a particular market.Market PositioningMarket Positioning is the process of establishing the image or identity of a brand or product so that consumers perceive it in a certain way.Market ReadinessMarket Readiness is the state of being fully prepared to enter a specific market, having met all necessary conditions and requirements.Market RiskMarket Risk is the risk of losses in positions arising from movements in market prices.Market SaturationMarket Saturation is a situation in which a product has become so widespread within a market that the potential for growth is diminished.Market SegmentationMarket Segmentation is the process of dividing a target market into smaller, more defined categories.Market ShareMarket Share is the portion of a market controlled by a particular company or product.Market ValidationMarket Validation is the process of determining whether your product is of interest to a given target market.Marketing AutomationMarketing Automation is the use of software and technology to aid marketing processes and campaigns.Marketing CollateralMarketing Collateral consists of materials used to support the sales of a product or service.Marketing MixThe Marketing Mix is the set of actions, or tactics, that a company uses to promote its brand or product in the market.Marketing StrategyA Marketing Strategy is an organization`s strategy that combines all of its marketing goals into one comprehensive plan.Matched FundingMatched Funding is funding where the amount of investment or grant is matched by another source, doubling the funding available.MaturityMaturity is the final payment date of a loan or other financial instrument, at which point the principal (and all remaining interest) is due to be paid.Maturity DateThe Maturity Date is the date on which a debt becomes due for payment.Maximize ValuationTo Maximize Valuation is to employ strategies by a company to increase its worth or value in the eyes of investors and the market.Media ExposureMedia Exposure is the amount of public attention that a company or product receives through various media channels.Membership EconomyThe Membership Economy is a business model where a company offers ongoing, subscription-based access to its product or service.Membership ModelThe Membership Model is a business model where customers pay a subscription fee to access the services or products offered.Mentor CapitalMentor Capital refers to funding provided by an investor who also offers guidance and advice to the startup founder.Merger and Acquisition (M&A)Merger and Acquisition (M&A) is the process by which companies consolidate through various types of financial transactions, including mergers, acquisitions, consolidations, tender offers, purchase of assets, and management acquisitions.Micro EquityMicro Equity refers to small equity investments typically made in startup or early-stage businesses.Micro-VCA Micro-VC is a type of venture capital fund typically under $50 million that invests in early-stage startups.MicroloanA Microloan is a small, short-term loan for small businesses or startups, typically offered by microfinance institutions.MicroventureA Microventure is a type of venture capital investment typically denoting smaller amounts of capital provided to early-stage, high-potential, growth startup companies.Milestone FundingMilestone Funding is a funding arrangement where funds are released to the startup as it achieves specific, pre-agreed milestones.Milestone PaymentA Milestone Payment is a payment system that pays out upon completion of specific milestones within a project`s development.Milestone-Based InvestingMilestone-Based Investing involves investing funds in a startup as it reaches predefined milestones or achievements.Minimum InvestmentThe Minimum Investment is the smallest amount of money that an investor can contribute to a fund or an investment opportunity.Minimum Viable Product (MVP)The Minimum Viable Product (MVP) is the most pared-down version of a product that can still be released to market, having just enough features to satisfy early customers and provide feedback for future product development.Mission StatementA Mission Statement is a formal summary of the aims and values of a company, organization, or individual.MoatA Moat is a business`s ability to maintain competitive advantages over its competitors in order to protect its market share and profitability.Mobile OptimizationMobile Optimization is the process of adjusting your website content to ensure that visitors accessing the site from mobile devices have an experience optimized for the device.Mobile PaymentMobile Payment refers to payment services operated under financial regulation and performed from or via a mobile device.Mobile-First StrategyA Mobile-First Strategy involves designing an online service or product for mobile devices before making a desktop version.MonetizationMonetization is the process of converting something into money, typically by generating revenue from the asset.Monthly Active Users (MAU)Monthly Active Users (MAU) is the number of unique users who engage with a site or product within a 30-day period.Monthly Recurring Revenue (MRR)Monthly Recurring Revenue (MRR) is the amount of revenue a subscription-based business receives on a monthly basis.Multi-Channel MarketingMulti-Channel Marketing involves marketing strategies that engage customers across multiple platforms or channels.Multi-stage InvestmentMulti-stage Investment involves investments made by venture capitalists in several rounds, as the company meets previously agreed upon milestones.Navigational CapitalNavigational Capital refers to strategic guidance and resources provided by investors to help startups navigate through challenges and growth phases.Navigational Tools for StartupsNavigational Tools for Startups are resources and applications designed to guide startups through the complexities of the business landscape.NDA (Non-Disclosure Agreement)An NDA (Non-Disclosure Agreement) is a legal contract establishing a confidential relationship between two parties, to protect any type of confidential information shared.Negotiated InvestmentA Negotiated Investment is an investment deal where terms are discussed and agreed upon by both the investor and the company, rather than fixed upfront.Net IncomeNet Income is the total profit of a company after all expenses and taxes have been subtracted from total revenue.Net InvestmentNet Investment is the total amount of money invested in a business venture after deducting any disinvestments.Net Profit MarginThe Net Profit Margin is a profitability ratio calculated as net income divided by revenue, indicating how much of each dollar earned is profit.Net RevenueNet Revenue is the amount of sales generated by a company after the deduction of returns, allowances for damaged or missing goods, and any discounts allowed.Net Working CapitalNet Working Capital is a measure of a company`s liquidity, operational efficiency, and short-term financial health, calculated as current assets minus current liabilities.New EntrantA New Entrant is a company that has recently entered a market or industry, typically characterized by a fresh approach or innovative solutions.