Startup Growth Glossary

A method of comparing two versions of a webpage, app, or marketing campaign to determine which performs better. Essential for data-driven optimization and improving conversion rates.

The series of steps potential customers go through from first awareness to becoming paying customers. Used to optimize marketing spend and identify conversion bottlenecks.

The value of recurring revenue normalized to a one-year period. Critical metric for SaaS companies to track growth and predict future revenue streams.

The process of determining which marketing touchpoints contribute to conversions. Essential for optimizing marketing spend across multiple channels and campaigns.

A testing phase where a select group of users test your product before public release. Helps identify bugs and gather feedback for product improvements.

The percentage of visitors who leave your website after viewing only one page. Key indicator of content relevance and user experience quality.

The rate at which a company spends money, typically measured monthly. Critical for understanding how long your startup can operate before needing additional funding.

The total cost of acquiring a new customer, including marketing and sales expenses. Essential metric for determining marketing efficiency and business profitability.

The percentage of customers who stop using your product or service over a given period. Critical for SaaS and subscription businesses to track retention health.

A method of analyzing user behavior by grouping customers based on shared characteristics or experiences over time. Essential for understanding retention patterns.

The percentage of visitors who complete a desired action (sign up, purchase, download). Key metric for measuring marketing campaign and website effectiveness.

The total revenue a business can expect from a single customer throughout their entire relationship with the company. Critical for determining sustainable acquisition costs.

The reduction in existing shareholders’ ownership percentage when new shares are issued. Important concept for founders understanding equity and fundraising impacts.

The investigation process investors conduct before making an investment. Includes reviewing financials, legal documents, market position, and team capabilities.

Ownership stake in a company, typically given to founders, employees, and investors. Represents a claim on the company’s assets and future profits.

Additional revenue generated from existing customers through upsells, cross-sells, or upgrades. Critical metric for SaaS businesses measuring account growth.

A pricing strategy where basic features are provided free while premium features require payment. Common model for SaaS and mobile apps to drive user acquisition.

The process of raising capital from investors to fund business operations and growth. Includes seed rounds, Series A/B/C, and other investment stages.

Rapid experimentation across marketing channels and product development to identify the most effective ways to grow a business. Focuses on low-cost, high-impact strategies.

The percentage of revenue retained from existing customers over a period, excluding expansion revenue. Measures how well a company retains its existing customer base.

A growth pattern where metrics start flat then suddenly spike upward dramatically, resembling a hockey stick shape. Often seen in successful startups after achieving product-market fit.

A strategy focused on attracting customers through relevant content and experiences rather than interruptive advertising. Includes SEO, content marketing, and social media.

The process of making repeated improvements to a product based on user feedback and data. Core principle of lean startup methodology and agile development.

A growth pattern showing initial decline followed by sharp upward growth, forming a J-shape. Common in startups during early investment phases before revenue acceleration.

Measurable values that demonstrate how effectively a company is achieving key business objectives. Essential for tracking progress and making data-driven decisions.

The process of attracting and converting prospects into potential customers who have expressed interest in your product or service. Foundation of most B2B sales processes.

A methodology for developing businesses and products based on validated learning, scientific experimentation, and iterative product releases to shorten development cycles.

The total revenue a business can expect from a single customer throughout their entire relationship with the company. Critical for determining sustainable acquisition costs.

A version of a product with just enough features to satisfy early customers and provide feedback for future development. Core concept in lean startup methodology.

The predictable revenue a subscription business generates each month from its customer base. Key metric for SaaS companies and subscription businesses.

The percentage of target market that a company has reached with its product or service. Important metric for understanding market share and growth potential.

A metric measuring customer loyalty and satisfaction based on likelihood to recommend your product. Scores range from -100 to +100, with higher scores indicating better customer advocacy.

The single most important metric that best captures the core value your product delivers to customers. Aligns entire organization around one key measure of success.

The process of helping new customers get started with your product and achieve their first success. Critical for reducing churn and improving customer lifetime value.

Business growth that comes from internal resources and operations rather than mergers, acquisitions, or paid advertising. Often refers to word-of-mouth and viral growth.

The degree to which a product satisfies strong market demand. Achieved when customers are willing to pay for, use, and recommend your product at scale.

A fundamental change in business strategy when initial approach isn’t working. Involves shifting product direction, target market, or business model based on learning.

The time it takes to recover the cost of acquiring a customer through their subscription or purchase revenue. Critical metric for understanding cash flow and profitability.

A prospect who has been researched and vetted by marketing and sales teams and is deemed ready for the next stage in the sales process.

The percentage of customers who continue using your product over a specific time period. Inverse of churn rate and critical for sustainable business growth.

A financial metric that projects annual revenue based on current monthly or quarterly performance. Used for forecasting and investor communications.

The amount of time a company can operate before running out of money, based on current cash and burn rate. Critical metric for fundraising timing and operational planning.

Sequential rounds of venture capital funding. Series A typically ranges $2-15M, Series B $10-50M, Series C $30M+, each supporting different growth stages.

The initial capital used to start a business, typically from founders, friends, family, or seed investors. Usually ranges from $10K to $2M for very early-stage companies.

How difficult or costly it is for customers to stop using your product and switch to a competitor. High stickiness leads to better retention and pricing power.

The total market demand for a product or service if 100% market share was achieved. Used for sizing opportunities and setting growth targets.

A non-binding agreement outlining the basic terms and conditions of an investment. Precedes formal legal documentation and due diligence processes.

The revenues and costs associated with a single unit of your business model. Fundamental for understanding scalability and long-term profitability.

The process of gaining new users or customers for your product or service. Encompasses all marketing activities focused on growing your user base.

The estimated worth of a company, typically determined during fundraising rounds. Can be pre-money (before investment) or post-money (after investment).

The number of new users generated by each existing user through referrals or sharing. Coefficient above 1.0 indicates viral growth where users organically multiply.

Organic promotion of your product by satisfied customers through personal recommendations. Often the most cost-effective and trusted form of marketing.

A comparison of financial or operational metrics between the same period in different years. Standard method for measuring business growth and performance trends.