1.
Business angels – are individual investors who
provide capital to startups in exchange for equity or debt. They invest in the
early stages of a startup and play an essential role by offering not just
funding but also guidance, mentorship and valuable networks.
2.
Startups – are the core entities within the ecosystem. They are
newly established companies that aim to grow rapidly by bringing innovative
products or services to the market. This phase is characterized by high risk,
rapid experimentation and a focus on securing market fit.
3.
Entrepreneurs – are the visionaries and driving force behind
startups. They identify market opportunities, take risks and lead efforts to
turn ideas into reality. A successful entrepreneur possesses creativity,
resilience and a strong sense of leadership.
4.
Bankruptcy – Bankruptcy is
a legal process through which individuals or businesses that are unable to
repay their debts can seek relief from some or all of their financial
obligations. It is initiated either by the debtor (voluntary bankruptcy) or by
creditors (involuntary bankruptcy) and is governed by bankruptcy laws. There are
different types of bankruptcy – liquidation, reorganization, repayment plan.
5.
Insurtech - Insurtech refers to the
use of technology innovations designed to find cost savings and efficiency from
the current insurance industry model. Insurtech is a combination of the words
“insurance” and “technology,” inspired by the term fintech.
6.
IPO - IPO
stands for Initial Public Offering. It is the process
by which a private company offers its shares to the public for the first time,
allowing investors to buy ownership in the company. This transition from a
private to a public entity typically helps the company raise capital for
expansion, pay off debts, or fund other business initiatives. IPOs are usually
underwritten by investment banks and are listed on stock exchanges like the
NYSE or NASDAQ.
7.
Liquidation
is the process of closing a business and converting its assets into cash to pay
off debts. It typically occurs when a company is insolvent (unable to meet its
financial obligations) or when the owners decide to shut down operations.
There are two main types of liquidation:
Voluntary
Liquidation – Initiated by the company's owners or shareholders when they
decide to dissolve the business.
Compulsory
Liquidation – Ordered by a court, usually at the request of creditors when a
company cannot pay its debts.
8.
A Big
Idea is a powerful, overarching concept that serves as the foundation for a business,
marketing campaign, or creative project. It is a compelling, transformative
insight that captures attention, inspires action, and differentiates a brand or
initiative.
In different contexts, a Big Idea can
mean:
Marketing
& Advertising: A unique, memorable theme that drives a brand’s message
(e.g., "Just Do It" by Nike).
Business
& Innovation: A groundbreaking vision or solution that disrupts an industry
(e.g., Tesla’s push for sustainable energy).
Philosophy
& Thought Leadership: A revolutionary perspective that changes how people
think about a topic (e.g., the theory of relativity).
A Big Idea is often simple but profound,
making it easy to communicate and scale.
9.
MVP
– given in the long answers
10. Incubators & Accelerators
Incubators
support early-stage startups with mentorship, office space, and networking.
Accelerators
provide structured programs and funding to rapidly grow startups.
11. Pivoting - A strategic shift in business
direction, often changing products, services, or target markets based on
customer feedback and market trends.
12. Unicorn Startup - A Unicorn Startup is a
privately held startup company that is valued at $1 billion or more. The term
was coined by venture capitalist Aileen Lee to describe the rarity of such
high-valued startups.
Key Characteristics of Unicorn
Startups:
High Valuation –
Valued at $1 billion+ before going public or getting acquired.
Innovative
Business Model – Disrupts traditional industries with technology-driven
solutions.
Rapid Growth –
Expands quickly with scalable products and services.
Strong Investor
Backing – Funded by venture capitalists (VCs), private equity, or angel
investors.
Global
Expansion Potential – Many unicorns target international markets.
Examples of Unicorn Startups in
India: Byju’s (EdTech), Zomato (FoodTech), Paytm (FinTech), Ola (Ride-sharing),
Swiggy (Food Delivery)
13. Seed Funding - The initial capital
raised by a startup to develop a prototype or early-stage product, usually from
angel investors, venture capitalists, or incubators.
14. Series A, B, C Funding - Different
rounds of funding for startups as they grow:
- Series A – Early-stage funding to scale operations.
- Series B – Growth-stage funding for market expansion.
- Series C & beyond – Late-stage funding for global
expansion or acquisitions.
15. Lean Startup Methodology - A business
approach that focuses on quickly testing ideas, iterating based on customer
feedback, and minimizing waste in product development.
16. Burn Rate - The rate at which a startup
spends its capital before becoming profitable. A high burn rate can be risky
without strong revenue streams.
17. Customer Acquisition Cost (CAC) - The
cost associated with acquiring a new customer, including marketing, sales, and
promotions. Startups aim to lower CAC while increasing customer retention.
18. Lifetime Value (LTV) - The total revenue
a business expects to earn from a customer throughout their relationship with
the company. A high LTV compared to CAC indicates a sustainable business model.
19. Freemium Model - A pricing strategy
where a basic product or service is offered for free, while premium features
require payment (e.g., Spotify, LinkedIn, Canva).
20. Growth Hacking - Creative, low-cost
strategies used by startups to rapidly acquire and retain customers, often leveraging
digital marketing, viral campaigns, and referrals.
21. Disruptive Innovation - A breakthrough
innovation that changes or replaces existing industries, such as how Uber
transformed transportation or Airbnb disrupted hospitality.
22. Elevator Pitch - A short, persuasive
speech (30–60 seconds) that explains a startup’s idea, value proposition, and
potential impact to investors or stakeholders.
