Terms on finance.

An independent appraisal of a private company's common stock, used to set the strike price for employee stock options in the US.

Building a company using your own money and the revenue it generates, rather than raising outside investment.

The rate at which your company spends cash each month, showing how quickly you're depleting your bank balance.

The average total sales and marketing cost to acquire one new paying customer.

A record of who owns what in your company: every shareholder, their share count, class, and ownership percentage.

The percentage of customers or revenue you lose over a period, the leak in your growth bucket.

A short-term loan to a startup that converts into equity at a later priced round instead of being repaid in cash.

The reduction in your ownership percentage that happens when a company issues new shares, typically to raise money or grant options.

A reserved block of company shares set aside to grant as stock options to employees, aligning their upside with the company's success.

The percentage of revenue left after the direct costs of delivering your product or service, a core measure of business quality.

The total gross profit you expect to earn from a customer over the entire time they stay with you.

Monthly and annual recurring revenue: the predictable subscription income a business earns each month or year.

How many months your company can keep operating before it runs out of cash, at its current spending rate.

A simple contract that gives an investor the right to future equity in exchange for cash now, converting to shares at a later priced round.

A mostly non-binding summary of the key terms of an investment, used to agree the deal before lawyers draft the final contracts.

The process of earning equity over time, so shares or options only fully belong to a person after they stay for a set period.