1 / MVP (Minimum Viable Product)

The simplest functional version of a product used to test an idea and validate market demand with minimal resources.

2 / Pre Seed

The earliest funding stage where founders raise initial capital, often from friends, family, or angel investors, to build and test their MVP.

3 / Seed Round

An early investment round that helps a startup validate product-market fit and begin scaling.

4 / Series A

The first significant funding round from institutional investors (VCs) to scale product, team, and customer acquisition.

5 / Runway

The length of time a startup can operate before needing additional funding, calculated based on current cash and burn rate.

6 / Burn Rate

The rate at which a startup spends its capital each month before generating positive cash flow.

7 / Term Sheet

A non-binding agreement outlining the basic terms and conditions under which an investment will be made.

8 / Exit

When investors realize returns from a startup, typically via IPO, acquisition, or merger.

9 / Unicorn

A privately held startup valued at $1 billion or more.

10 / Due Diligence

The process by which investors evaluate a startup’s business, legal, and financial information before investing.