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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Ultimate CostUltimate Cost is the total expense incurred in the development, production, and distribution of a startup`s product or service, encompassing all direct and indirect costs.Unallocated EquityUnallocated Equity is equity in a startup that has not been assigned or promised to any individual or entity, often reserved for future employees or investment rounds.Unbiased AnalyticsUnbiased Analytics involves the collection and analysis of data without preconceived notions or biases, ensuring accurate and objective insights into business performance.Unbundled ServicesUnbundled Services are individual services or features offered separately rather than as part of a package, allowing customers to choose and pay for only what they need.UnbundlingUnbundling is the process of breaking down a company`s offerings into smaller, individual components that can be sold separately, often leading to new revenue streams.Uncapped NotesUncapped Notes are a type of convertible note without a valuation cap, meaning the conversion rate to equity is not fixed and can dilute founders significantly if the company’s valuation increases.Uncapped RoundAn Uncapped Round is a funding round without a predetermined valuation cap, allowing investors to fund a startup without limiting their potential equity stake.Uncertainty ManagementUncertainty Management is the process of identifying, assessing, and mitigating uncertainties in business operations and strategic planning to minimize risks.Under Promise and Over DeliverUnder Promise and Over Deliver is a strategy where companies intentionally set expectations low and then exceed them, often to surprise and delight customers.UndercapitalizationUndercapitalization is the situation where a company does not have sufficient capital to conduct normal business operations and grow.UnderemploymentUnderemployment is a situation in which individuals are working in a capacity that is lower than their skills or educational level.Underlying AssetAn Underlying Asset is an asset (such as stock, bonds, or commodities) that gives value to a financial instrument, such as a derivative or convertible note in startup financing.Underlying ProfitUnderlying Profit is the profit of a company excluding any earnings that come from outside the usual business activities.UnderperformanceUnderperformance is the condition of achieving less than expected or required, often used in the context of a startup not meeting its business goals or financial projections.Underserved MarketAn Underserved Market is a segment of the market that has not been fully reached by existing products or services, representing a potential growth area for startups.Underutilized AssetsUnderutilized Assets are resources or assets within a company that are not being used to their full potential, representing opportunities for increased efficiency or revenue.UndervaluationUndervaluation is the situation in which a company`s value is lower than its actual worth, which can affect fundraising efforts and equity stakes.UnderwritingUnderwriting is the process by which an individual or institution takes on financial risk for a fee, often associated with the issuance of new shares.Underwriting DiscountUnderwriting Discount refers to the fee charged by underwriters when they agree to buy and resell shares at a certain price, typically in an IPO process.Undiluted OwnershipUndiluted Ownership is ownership of a company`s shares without considering the potential effect of stock option conversions or the issuance of new shares.Unfair AdvantageAn Unfair Advantage is a unique attribute or asset that cannot be easily replicated or surpassed by competitors, giving a startup a competitive edge in its market.Unfunded LiabilityAn Unfunded Liability is a liability, such as a pension plan benefit, that does not have assets set aside to fund the future payment.UnicornA Unicorn is a startup company valued at over $1 billion, typically in the tech sector, indicating high growth potential.Unicorn PipelineThe Unicorn Pipeline is the flow or progression of startups that have the potential to become unicorns, or companies valued at over $1 billion.Unified BrandingUnified Branding is the practice of ensuring all marketing and communication efforts present a consistent brand image and message across all channels and platforms.Unified Communication PlatformA Unified Communication Platform integrates multiple communication methods within a business, such as email, chat, video calls, and file sharing, to streamline and improve internal and external communication.Uniform Commercial Code (UCC)The Uniform Commercial Code (UCC) is a set of laws that provide legal rules and regulations governing commercial or business dealings and transactions in the United States.Unilateral AgreementA Unilateral Agreement is a contract in which one party agrees to make a promise or agreement without requiring the other party to reciprocate.UninvestedUninvested refers to funds that have been raised but not yet allocated or spent by a startup, often kept in reserve for future use.Unique IdentifierA Unique Identifier is a distinct and exclusive identifier assigned to individuals, items, or records, facilitating easy identification and tracking within digital systems.Unique Selling Proposition (USP)The Unique Selling Proposition is a distinct advantage or benefit that sets a product or service apart from its competitors, aimed at attracting customers.Unique Value Proposition (UVP)A Unique Value Proposition is a clear statement that describes the benefit of an offer, how it solves customers` problems, and what distinguishes it from the competition.Unit Contribution MarginUnit Contribution Margin is the revenue per unit sold minus the variable costs per unit, indicating the contribution of each unit sold to covering fixed costs.Unit Cost AnalysisUnit Cost Analysis examines the cost associated with producing or acquiring a single unit of a product or service, critical for pricing strategies and profitability assessments.Unit EconomicsUnit Economics is the analysis of the direct revenues and costs associated with a particular business model expressed on a per unit basis.Unit HolderA Unit Holder is an investor or owner of units in a venture fund or trust, akin to a shareholder in a corporation.Unit Market ShareUnit Market Share is the measure of a product`s sales volume in comparison to the total sales volume of all competing products in the same market.Universal AccessUniversal Access refers to the design principle and practice of making products, services, and environments accessible to all people, regardless of their abilities or disabilities.Universal DefaultA Universal Default is a clause in a credit agreement that allows lenders to increase the interest rates if the borrower defaults on an agreement with another lender.Universal Service ObligationUniversal Service Obligation is a commitment by a company, often in telecommunications, to provide service to all customers within a region, regardless of profitability.Unlevered BetaUnlevered Beta is a measure of how much risk a company`s equity has without the effect of debt, used in evaluating the volatility of a company without financial leverage.Unlevered Free Cash FlowUnlevered Free Cash Flow is cash flow from operations minus capital expenditures and changes in working capital, not taking into account interest or debt.Unlevered ReturnUnlevered Return is the return on an investment without taking into account the effect of financial leverage, providing a clearer picture of the investment’s performance.Unlocking ValueUnlocking Value involves strategies or actions taken by a startup to release potential value within the company, often leading to increased investor interest or valuation.Unsecured CreditorAn Unsecured Creditor is a creditor who has extended credit without obtaining specific collateral against the amount lent.Unsecured DebtUnsecured Debt is a loan or credit not backed by collateral, relying solely on the borrower`s creditworthiness and promise to repay.Unsecured LoanAn Unsecured Loan is a loan that is issued and supported only by the borrower`s creditworthiness, rather than by any type of collateral.Unsolicited FeedbackUnsolicited Feedback is input or opinions about a product or service provided by users without the company specifically requesting it, offering valuable insights for improvement.Unsolicited ProposalAn Unsolicited Proposal is a proposal made by an entity seeking to sell or propose a project to a company, without the company requesting the proposal initially.Unsustainable GrowthUnsustainable Growth is growth that cannot be maintained over the long term, often due to inadequate resources, planning, or market saturation.