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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One-on-One Investor MeetingsOne-on-One Investor Meetings involve personalized meetings between a startup`s representatives and potential investors to discuss investment opportunities.Ongoing Investor RelationsOngoing Investor Relations involves the continuous effort to maintain and strengthen the communication and relationship between a startup and its investors.Ongoing Support AgreementAn Ongoing Support Agreement ensures continuous support, maintenance, or service from a vendor or partner post-purchase.Online Branding StrategyAn Online Branding Strategy is the approach a startup takes to build and manage its brand identity and reputation over the internet.Online Community BuildingOnline Community Building involves the creation and cultivation of an online platform where customers or users can interact, share ideas, and foster relationships.Online Engagement MetricsOnline Engagement Metrics involve analyzing online interactions, such as website visits or social media engagement, to gauge interest in a startup`s fundraising efforts.Online Market PenetrationOnline Market Penetration involves the strategy and process of increasing a startup`s share within online markets or digital platforms.Online MarketplaceAn Online Marketplace is a platform that connects buyers and sellers over the internet, facilitating transactions of goods and services.Online PresenceAn Online Presence is the collective existence of a company or individual on the Internet, through a website, social media, or other online platforms.Online Visibility StrategyAn Online Visibility Strategy involves developing and implementing tactics to increase a startup`s presence and discoverability on the internet.Open API EconomyThe Open API Economy involves utilizing open Application Programming Interfaces (APIs) to create business models that encourage innovation through third-party developers.Open Book ManagementOpen Book Management is a management approach where employees are provided with company financial information to make informed business decisions.Open InnovationOpen Innovation is the practice of sourcing ideas, insights, and technologies from outside entities to drive internal innovation.Open Source Software UtilizationOpen Source Software Utilization involves the practice of using freely available software code to build or enhance digital products and services.Open-End FundAn Open-End Fund is an investment fund that continuously issues new shares and buys back shares from investors, without a fixed number of shares.Operating AgreementAn Operating Agreement is a document outlining the governance and operational guidelines of an LLC, including ownership percentages and profit sharing.Operating BudgetAn Operating Budget is a detailed projection of all estimated income and expenses based on forecasted sales revenue during a given period.Operating CapitalOperating Capital refers to funds used to support the day-to-day operations of a startup, covering expenses such as rent, payroll, and utilities.Operating Cash FlowOperating Cash Flow is the amount of cash generated by a company`s normal business operations.Operating CostsOperating Costs are expenses associated with the operation of a business, excluding the cost of goods sold.Operating ExpendituresOperating Expenditures are expenses incurred during regular business operations, such as rent, utilities, and payroll.Operating IncomeOperating Income is revenue from business operations after deducting operating expenses and before taxes and interest.Operating LeverageOperating Leverage is the degree to which a firm can increase operating income by increasing revenue, reflecting fixed versus variable costs.Operating MarginOperating Margin is a profitability ratio calculated as operating income divided by net sales, showing the efficiency of a company`s core business.Operational Agility FrameworkAn Operational Agility Framework is a system enabling a startup to quickly adapt its operations in response to market changes, challenges, or opportunities.Operational AutonomyOperational Autonomy refers to the degree to which a startup operates independently, making decisions without external interference.Operational Break-even PointThe Operational Break-even Point is the stage at which a startup`s revenues equal its operating expenses, indicating the initial point of profitability.Operational Cash Burn RateThe Operational Cash Burn Rate is the rate at which a startup spends its cash reserves on day-to-day operations before reaching profitability.Operational Cost ControlOperational Cost Control involves the practice of monitoring and managing expenses to operate within a budget and improve profitability.Operational Due DiligenceOperational Due Diligence is the process of evaluating a company`s operational processes and efficiency before making an investment decision.Operational EfficiencyOperational Efficiency is the ability of a startup to deliver products or services in a cost-effective manner without sacrificing quality.Operational Excellence InitiativeAn Operational Excellence Initiative is a strategic effort to improve the efficiency, productivity, and quality of a startup`s operations and processes.Operational MilestonesOperational Milestones are specific, measurable goals that a startup aims to achieve as part of its operational plan.Operational Process InnovationOperational Process Innovation involves the introduction of new or improved operational procedures, techniques, or systems to enhance productivity and efficiency.Operational RiskOperational Risk is the risk of loss resulting from inadequate or failed internal processes, people, systems, or external events.Operational Risk ManagementOperational Risk Management involves the identification, assessment, and prioritization of risks to operations, with strategies to mitigate or manage these risks.Operational ScalingOperational Scaling is the process of expanding a startup`s operational capacity to support increased product or service demand.Operative Performance MetricsOperative Performance Metrics are key indicators used to measure and monitor the efficiency and effectiveness of a startup`s operational activities.Opportunistic Growth HackingOpportunistic Growth Hacking involves leveraging timely opportunities and innovative tactics to rapidly increase a startup`s market presence or customer base.Opportunistic VentureAn Opportunistic Venture is a business initiative that aims to capitalize on immediate market opportunities with high growth potential.Opportunity AnalysisOpportunity Analysis is the process of identifying and assessing the potential of a new business or product idea.Opportunity CostOpportunity Cost is the cost of forgoing the next best alternative when making a decision.Opportunity FundAn Opportunity Fund is a specialized investment fund designed to invest in startups with significant growth potential in underserved markets or sectors.Opportunity IdentificationOpportunity Identification is the process of recognizing new business opportunities, markets, or niches that a startup could potentially enter.Opt-In Email MarketingOpt-In Email Marketing is a marketing strategy where recipients have explicitly consented to receive promotional emails from a company.Optimal Capital StructureThe Optimal Capital Structure is the mix of debt, equity, and other financing sources that minimizes the cost of capital while maximizing value.Optimization of ResourcesThe Optimization of Resources involves the strategic utilization of a company`s assets, finances, and personnel to maximize efficiency and productivity.Optimized Resource AllocationOptimized Resource Allocation involves strategically distributing a startup`s resources, including capital, talent, and technology, to areas with the highest return potential.Option AgreementAn Option Agreement is a contract that gives the buyer the right, but not the obligation, to buy or sell an asset at a set price within a specific time frame.Option Exercise PriceThe Option Exercise Price is the price at which an option holder can purchase (call option) or sell (put option) the underlying security.