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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Value EngineeringValue Engineering is a systematic method to improve the "value" of goods or products and services by using an examination of function.Value InnovationValue Innovation focuses on making the competition irrelevant by creating a leap in value for both the company and its customers, distinguishing it from traditional competitive strategies.Value PropositionA Value Proposition is a statement that summarizes why a consumer should buy a product or use a service, explaining the value the product provides.Value Stream MappingValue Stream Mapping is a lean-management method for analyzing the current state and designing a future state for the series of events that take a product or service from its beginning through to the customer.Value-Added ServicesValue-Added Services are additional services offered by a company to add value to their core offerings, enhancing customer satisfaction and competitive advantage.Variable CostsVariable Costs are expenses that change in proportion to the activity or volume of a business.Variable Interest Entity (VIE)A Variable Interest Entity is a legal business structure that allows a company to consolidate a business entity it does not directly control or majority-own, often used in venture financing structures.Vendor Due DiligenceVendor Due Diligence is a pre-transactional analysis performed by the seller on behalf of the interested parties, aiming to increase the efficiency and speed of the sale process.Vendor FinancingVendor Financing is a way for a company to provide its customers with funds to purchase its products or services.Venture BuildingVenture Building refers to the process of systematically producing new companies, products, or projects from within a venture studio or company, leveraging internal resources and capabilities.Venture Capital (VC)Venture Capital is financing that investors provide to startup companies and small businesses that are believed to have long-term growth potential.Venture CapitalistA Venture Capitalist is an investor who provides capital to startups with high growth potential in exchange for an equity stake.Venture DebtVenture Debt is a type of debt financing provided to venture-backed companies by specialized banks or non-bank lenders.Venture EcosystemThe Venture Ecosystem comprises all stakeholders involved in the startup landscape, including investors, entrepreneurs, incubators, accelerators, and service providers, contributing to the growth and success of startups.Venture PhilanthropyVenture Philanthropy applies venture capital financing principles to achieve philanthropic endeavors, focusing on accountability, and results.Venture ScalingVenture Scaling refers to the process of expanding a startup`s operations, market presence, and revenue streams rapidly and effectively.Venture SyndicationVenture Syndication occurs when multiple investors come together to invest in a single venture, sharing the risk and rewards.Vertical AcquisitionA Vertical Acquisition is when a company acquires another company in the same industry but at a different point in the supply chain.Vertical IntegrationVertical Integration is a strategy where a company expands its business operations into different steps on the same production path.Vertical MarketA Vertical Market is a market defined by a specific industry or demographic that specialized products or services cater to.Vertical ScalabilityVertical Scalability is the ability of a startup to increase its capacity by adding more resources to the existing infrastructure, such as hardware or software upgrades.Vested InterestA Vested Interest is a personal stake or involvement in an undertaking or state of affairs, especially with an expectation of financial gain.Vesting CliffA Vesting Cliff is the period of time before shares in an employee stock option plan or benefits in a retirement plan are unconditionally owned by an employee.Vesting PeriodThe Vesting Period is the time during which an employee must wait to gain full control over their stock options or retirement plan benefits as an incentive to stay with the company.Vesting ScheduleA Vesting Schedule is a timeline over which an employee earns access to company stock or another form of compensation as part of their employment package.Viable Minimum Product (VMP)A Viable Minimum Product is the most pared-down version of a product that can still be released as a minimum viable product to begin the process of learning as quickly as possible.Viable ProductA Viable Product is a product that has enough features to attract early-adopter customers and validate a product idea early in the product development cycle.Video PitchA Video Pitch is a short video presentation by entrepreneurs to potential investors, outlining their business model, product, market opportunity, and funding needs.Viral CoefficientThe Viral Coefficient is a measure of how many new users an existing user generates, indicating the potential for exponential growth through referrals.Viral MarketingViral Marketing is a business strategy that uses existing social networks to promote a product mainly through word-of-mouth.Virtual AcceleratorA Virtual Accelerator offers remote support and resources for startups, including mentorship, education, and sometimes funding, without the need for physical presence.Virtual CFOA Virtual CFO (Chief Financial Officer) offers financial strategy services to businesses remotely, providing expertise without the cost of a full-time CFO.Virtual EquityVirtual Equity refers to non-traditional forms of equity compensation, such as phantom stock or stock appreciation rights, which provide benefits based on company performance without conveying actual stock ownership.Virtual IncubatorA Virtual Incubator provides remote support services and resources to startups, including mentorship, networking opportunities, and sometimes funding, leveraging digital platforms.Virtual MarketplaceA Virtual Marketplace is an online platform where goods and services are exchanged between third parties, providing wide exposure to businesses.Virtual MentorshipVirtual Mentorship involves guidance and support provided to entrepreneurs and startups through digital means, including video calls, email, and messaging platforms.Virtual TeamA Virtual Team operates remotely, often in various global locations, working toward common business objectives through digital communication.Visibility EnhancementVisibility Enhancement refers to strategies and efforts aimed at increasing a startup’s presence and awareness in the market, often through marketing and public relations efforts.Visibility StrategyA Visibility Strategy is a plan to increase the awareness and profile of a startup or product, employing various marketing and communication channels.Vision AlignmentVision Alignment involves ensuring that all members of an organization understand and are committed to its vision, ensuring cohesive efforts towards achieving long-term goals.Vision ExecutionVision Execution is the process of implementing strategic actions and initiatives to realize an organization`s vision, involving detailed planning and consistent effort.Vision StatementA Vision Statement is a declaration of an organization`s objectives, intended to guide its internal decision-making.Visionary InvestingVisionary Investing is the practice of investing in startups with the potential to significantly impact their industry or society, focusing on long-term growth and innovation.Visionary LeadershipVisionary Leadership refers to a leadership style that is characterized by a clear vision of the future and the ability to communicate it to others.Voice of Customer (VOC)Voice of Customer is a term used to describe the in-depth process of capturing customers` expectations, preferences, and aversions, critical for product development and customer satisfaction.VolatilityIn the context of startup finance, Volatility refers to the degree of variation of a trading price series over time, indicating the risk associated with a company`s stock.Voluntary ComplianceVoluntary Compliance in the startup context refers to willingly adhering to legal, regulatory, and financial reporting requirements without external enforcement.Voluntary LiquidationVoluntary Liquidation is the process of dissolving a company with the agreement of its shareholders, distributing its assets to claimants.Volunteer EngagementVolunteer Engagement is the process of strategically using volunteer talent to further a startup`s goals, maximizing the mutual benefit and impact of volunteer efforts.Volunteer NetworkA Volunteer Network in the startup context refers to a group of individuals who voluntarily contribute their time, skills, or resources to support the startup`s goals and activities.