Entrepreneurship and startup terminologies you discovered in Shark tank

An entrepreneur is a person who makes business, bearing the vast majority of the risks with the objective of solving an untapped problem. Their business is also referred to as Startup since these business founders are visionary and seek a solution to a problem through their unique approach. 

And from the last many years we are seeing emerging waves of ideas successfully turning into great startups. Seeing the trend more and more people entering in with their exceptionally great business proposals. And the venture capitalists are also wholeheartedly supporting them in proceeding their businesses to the next level. 

Moreover, the media industry is also recording the pulse of the population by introducing varied business pitching reality shows. Shark tank is one of the most viewed idea pitching reality shows where entrepreneurs enter and demonstrate their business plans. And both Sharks (veteran investors) and startup founders talks in a startup lingo that most people find hard to understand. Seeing this we have come up with an article to kill your curiosity over various entrepreneurship and startup terminologies.

We will try to cover most of the entrepreneurship and startup terminologies you discovered in Shark tank and try to put these terms in more understandable language. 

Entrepreneurship and startup terminologies you discovered in Shark tank  

Angel Investment: 

This type of investment typically happens when a startup is in its early stages. An angel investor is a person or an entity that helps a startup to initiate its business by funding or providing them money in exchange for ownership in the company. The percentage of ownership will depend upon the money taken by the startup founders who are seeking investment.

Acqui-hire:

Acqui-hire describes buying a company in order to acquire the employees working within it. In this way, companies are hiring the best talents rather than spending more time and resources sourcing employees outside.

Acquisition: 

An acquisition is when one company or a business group buys another company for gaining operational control. After an acquisition is done the acquirer will enjoy or bear the profits or losses made by the company. 

Bootstrapping:

Bootstrapping means when an entrepreneur or group of entrepreneurs starts a business with their own capital. That can be savings or money taken from their friends or family members. This can also be called starting lean without raising funds by diluting their business.

Bottom line:

It is calculated by making a difference between Sales and the expenses (including taxations) incurred by a company during a specific time period. The bottom line is also regarded as net income or net profit made by a business.

Cashflow:

The amount of money flowing in and out of the business. Cash inflow is the term used while money enters the business through different sources. Cash outflow is the term used when money goes outside your business inform of expenditure.

Crowdfunding: 

Crowdfunding is a way of raising money to finance businesses. It is simply a process in which a small amount of money is taken from a large number of people. It is usually done if your business is connected to some social cause or can serve society in a larger picture.

Disruption:

Disruption refers to innovation a company brings in through its business that changes the way all companies in that industry operate. It can hider the market of its current competitors if the product or service introduced is disruptive.

Expertise: 

Expertise is knowledge or skill that one has for a specific or a large number of domains. When an investor invests in a startup he or she may on board his/her expertise for adding value to the business.

First Mover Advantage:

It means an advantage gained by the business that has entered or introduced a product or service for the first time.

First-Mover Advantage might be gained by the early entrants business who don’t have any prevailing competition in the market.

Freemium model:

Freemium is a form of strategy by which a product or service is provided free of charge with an aim of getting a large audience or customers at a later stage. Once the customers get stick to your product you will start charging a subscription fee later.

KPI:

KPI stands for key performance indicators, the metrics by which startups judge their performance, progress, and targets. They analyze factors that are crucial for the success of a company.

Market penetration:

It is the percentage or value of products or services offered in the market in comparison to the total market for that product or service. 

Pivot: 

When you are making a change in your business strategy then you are pivoting. Pivot simply occurs when a company shifts its business strategy to tackle changes that are prevailing in the industry.

Scalability: 

It means that your business has growth potential moving forward. The goal of every investor is to invest in a business that can grow its investment with the passage of time. A startup is regarded as scalable when it creates a repeatable business and delivers products or services that are meant to addresses user needs better than others.

Seed funding:

Seed funding helps a company to finance its business during its initial days. Post seed funding the startup moves to the next funding rounds such as series A, B, C.

Term sheet:

A term sheet is a document that outlines the terms of the investment made by an investor or a number of investors. It lays out the terms of financing having a non-binding agreement.

Topline: 

The top line refers to the sales generated by a company during a specific period of time. It is mostly regarded as the revenue made during a financial year by a business. 

Valuation: 

Valuation means the financial worth of a company based on its assets, revenue, profitability, and the money raised by the company through investors. Also, based on the valuation of a business the investors will value their investment and ask for matched shares in the company.

Value Proposition:

Value proposition refers to the value that you bring in through your product that can solve a problem better than your competitors. It communicates why a customer should buy from you. 

Unicorn: 

Startups are regarded as unicorns when they reach and exceed a billion-dollar valuation. It is a very popular term in the venture capital industry.

Take away

In the article above we showcased some of the most used entrepreneurship and startup terminologies you discovered in Shark tank. We hope these terms would be useful to you if you are looking for beginning a startup or you are a curious reader who likes to grasp the meaning of some trending words.