The term angel originally referred to an affluent patron who financed Broadway plays. Today, an angel is a wealthy person willing to invest in a company and mentor it in its early days.
Starting a company using whatever resources are available to you: personal savings and borrowed capital from family and friends.
The rate at which a startup is blowing through its cash in order to continue operations.
A PowerPoint presentation that conveys your idea and business model in a concise and compelling manner. Often, you get one chance to pitch to an investor, so a well-thought-out deck is critical.
To change the way things are done in a market by doing something different, thereby displacing an earlier technology.
A period of rapid growth that resembles the curve of a hockey stick on a graph. The initial growth is slow, followed by a sudden spurt. Time to play hardball!
MINIMUM VIABLE PRODUCT (MVP)
A working product which is good enough to be introduced onto the market in order to get feedback from initial users. The product is then fine-tuned on the basis of the response.
A quick change of direction or substantial correction by a startup, often based on customer feedback, previous learnings or changes in technology. The ability to pivot is critical to success.
When a startup projects that it is cash-flow positive, but actually has just enough money to cover basic expenses, such as electricity, water and instant ramen noodles. Though in India, it should be called Maggi profitable!
Entrepreneurs who needed more than one attempt to succeed, which is quite the norm in the startup sector. Restarters bring something very valuable to the table: experience.
The first round of investment that helps finance the initial stages of a startup. Usually, seed funding is received on the basis of a successful pitch.
These investors come into the picture once a startup has demonstrated market acceptability and needs a large amount of capital to grow and move into newer markets. VCs look to invest in companies with high growth potential.