EU Tech & VC Glossary

In alphabetical order, regularly updated.

Categories: [Funding], [Legal], [Equity], [Fund Operations], [Metrics], [Product & Ops], [EU-Specific], [Ecosystem]

Tip: to find the category you’re interested in, simply use Ctrl + F and type one of the above categories.

A

Accelerator [Ecosystem]: A fixed-term, cohort-based program offering mentorship, resources, and investor connections to early-stage startups, often culminating in a demo day.
Acqui-hire [Funding]: An acquisition primarily to recruit a startup’s talent rather than its product or technology.
Active Ownership [Fund Operations]: An investor’s hands-on involvement in portfolio companies, influencing strategy, hiring, or operations.
Advisory Shares [Equity]: Equity granted to advisors for strategic input, typically with restricted voting rights and vesting schedules.
Allocation [Funding]: The portion of a funding round reserved for a specific investor or group.
Angel Investor [Funding]: An individual investing personal capital in early-stage startups, often providing mentorship alongside equity investment. In Europe, also called a Business Angel (BA).
Annual Recurring Revenue (ARR) [Metrics]: Predictable, annualized revenue from subscriptions or recurring contracts, excluding one-time fees.
Anti-dilution Clause [Legal][Equity]: A provision protecting investors from equity dilution in future rounds by adjusting share ownership, often via weighted average or full ratchet mechanisms.
Article 6/8/9 Funds [EU-Specific]: EU fund classifications under the Sustainable Finance Disclosure Regulation (SFDR). Article 6 funds have no sustainability focus, Article 8 promote ESG characteristics, and Article 9 target sustainable investments with measurable impact.
Asset-light [Product & Ops]: A business model minimizing physical assets or capital expenditures, relying on digital or scalable infrastructure.
At-the-money (ATM) [Equity]: When an option’s strike price equals the current market value of the underlying share.
Attrition Rate [Metrics]: The percentage of employees or users leaving a company over a defined period.
Auditable Metrics [Metrics]: Key performance indicators (KPIs) verifiable through data or third-party audits, such as revenue or user growth.
Augmented Due Diligence [Fund Operations]: Enhanced due diligence leveraging expert networks, AI tools, or data platforms to assess startups.
AUM (Assets Under Management) [Fund Operations]: The total market value of investments managed by a VC or fund.
Average Revenue Per User (ARPU) [Metrics]: Revenue generated per user or customer over a specific period, often used in SaaS or subscription models.
AI-Native Startup [Product & Ops]: A startup whose core product or service is built on artificial intelligence or machine learning.
Anchor Investor [Funding]: A lead or prominent investor in a round or fund, signaling credibility to other investors.
Allocation Rights [Legal][Equity]: Contractual rights allowing existing investors to participate in future funding rounds to maintain their ownership percentage.
As-if Converted [Equity]: A calculation of equity ownership assuming all convertible securities (e.g., SAFEs, CLNs) are converted into shares.
Acceleration Clause [Legal][Equity]: A provision allowing faster vesting of equity upon specific events, such as an acquisition or IPO.
API-first Company [Product & Ops]: A company prioritizing API delivery for its core product, enabling integration with other platforms.
Angel Round [Funding]: An early-stage funding round led by angel investors, typically pre-seed or seed stage.
Application Layer [Product & Ops]: The user-facing layer of a tech stack, handling interactions and interfaces.
Asset Management Company (AMC) [EU-Specific]: An EU-regulated entity authorized to manage investment funds, subject to MiFID II and AIFMD.
Articles of Association [Legal]: A company’s governing document outlining shareholder rights, board structure, and operational rules.

B

B2B (Business-to-Business) [Product & Ops]: A model where a company sells products or services to other businesses.
B2C (Business-to-Consumer) [Product & Ops]: A model targeting individual consumers directly with products or services.
Back Office [Fund Operations]: Administrative functions of a VC fund, including compliance, accounting, and investor reporting.
Bad Leaver Clause [Legal][Equity]: A provision penalizing employees or founders who leave under adverse conditions (e.g., misconduct) by reducing their equity or compensation.
Bankable Dealflow [Funding]: A pipeline of startups meeting an investor’s investment criteria, ready for due diligence or investment.
Batch [Ecosystem]: A cohort of startups participating in an accelerator or incubator program simultaneously.
Benchmarking [Metrics]: Comparing a startup’s metrics (e.g., ARR, CAC) to industry peers to assess performance.
Beta Testing [Product & Ops]: Pre-release testing of a product with a select group to identify issues and gather feedback.
Big Four [Ecosystem]: The four largest professional services firms—PwC, Deloitte, EY, and KPMG—often involved in startup audits, tax, or M&A advisory.
Board Observer [Legal]: A non-voting attendee at board meetings, typically representing an investor or stakeholder.
Bookrunner [Funding]: A lead firm or fund managing a fundraising round or IPO, coordinating investors and terms.
Bootstrapping [Funding]: Building a company using personal funds or revenue, without external investment.
Break-even Point [Metrics]: The stage where total revenue equals total costs, resulting in no profit or loss.
Bridge Financing [Funding]: Temporary funding to extend a startup’s runway until the next major round.
Budget vs. Forecast [Fund Operations]: Comparing a fund’s initial financial plan (budget) with updated projections (forecast) to track performance.
Build in Public [Ecosystem]: A strategy of developing a startup transparently, sharing progress and challenges publicly to build community or traction.
Burn Multiple [Metrics]: A capital efficiency metric calculated as net burn divided by net new ARR, indicating how efficiently a startup uses capital to grow.
Burn Rate [Metrics]: The monthly rate at which a startup spends its cash reserves, typically expressed as a negative cash flow.
Buy-Side [Fund Operations]: Investors, such as VCs or PE funds, purchasing securities, startups, or assets.

C

CAC (Customer Acquisition Cost) [Metrics]: The average cost to acquire a new customer, including marketing and sales expenses.
Cap Table [Equity]: A record of a startup’s ownership, detailing shareholders, equity types, and percentages.
Capital Call [Fund Operations]: A request by a VC fund for limited partners (LPs) to transfer committed capital for investments.
Capital Efficiency [Metrics]: A measure of how effectively a startup converts invested capital into revenue or growth.
Carried Interest (Carry) [Fund Operations]: A portion of a fund’s profits (typically 20%) paid to fund managers after meeting a minimum return threshold (hurdle rate).
CDP (Carbon Disclosure Project) [EU-Specific]: A global framework for companies to report environmental impact, widely used in EU ESG compliance.
CEE (Central and Eastern Europe) [EU-Specific]: A region including Poland, Czech Republic, and others, known for growing startup ecosystems and VC activity.
Churn Rate [Metrics]: The percentage of customers or subscribers discontinuing a service over a period.
Cliff [Equity]: A vesting period (often one year) during which no equity vests; after the cliff, vesting occurs incrementally.
Closing [Funding]: The final stage of a funding round when legal agreements are signed and funds are transferred.
Cloud Credits [Product & Ops]: Free or discounted cloud service credits (e.g., AWS, Google Cloud) offered to startups for infrastructure.
Co-investment [Funding]: An investment made alongside a lead VC, often by LPs, angels, or other funds, typically on the same terms.
Community-Led Growth [Product & Ops]: A growth strategy relying on user communities to drive engagement, adoption, and retention.
Compounding Advantage [Product & Ops]: Incremental advantages (e.g., data, network effects) that build over time, creating a competitive edge.
Convertible Loan Note (CLN) [Legal][Equity]: A debt instrument that converts into equity at a future round, often with a discount or cap.
Core KPIs [Metrics]: Critical metrics (e.g., ARR, CAC, churn) monitored by startups and investors to gauge performance.
Corporate VC (CVC) [Funding]: Investment arms of corporations making strategic or financial investments in startups.
Crowdfunding [Funding]: Raising capital from many individuals via platforms like Seedrs or Crowdcube, often for equity or rewards.
Customer Success [Product & Ops]: A function ensuring customers achieve sustained value from a product, reducing churn and boosting retention.
Cyclicality [Ecosystem]: The fluctuation of VC investment and startup activity tied to economic or market cycles.

D

Data Room [Funding]: A secure, typically virtual, repository of confidential documents (e.g., financials, contracts) shared with investors during due diligence.
Data Sovereignty [EU-Specific]: The principle that data is governed by the laws of the country where it’s stored, critical in the EU due to GDPR and the EU Data Act.
DBA (Doing Business As) [Legal]: An alternative business name registered for operations, distinct from the legal entity name.
Dealflow [Funding]: The stream of potential investment opportunities evaluated by a VC fund or investor.
Deck [Funding]: A pitch presentation summarizing a startup’s vision, business model, team, and traction for investors.
Default Alive [Metrics]: A startup that, under current financials, will achieve profitability before depleting cash reserves.
Default Dead [Metrics]: A startup that, without changes, will exhaust cash reserves before becoming profitable.
Deferred Revenue [Metrics]: Revenue received for undelivered goods or services, common in SaaS and recognized over time.
Delaware C-Corp [Legal]: A U.S. corporate structure favored by U.S. VCs, sometimes used by EU startups raising American capital, though EU entities (e.g., UK Ltd, German GmbH) are often preferred locally.
Demo Day [Ecosystem]: An event concluding an accelerator program, where startups pitch to investors and stakeholders.
Dilution [Equity]: The reduction in ownership percentage due to the issuance of new shares in a funding round.
Diligence Checklist [Fund Operations]: A standardized list of documents and criteria (e.g., cap table, contracts) reviewed during due diligence.
Direct Investment [Funding]: An investment made directly into a startup, bypassing intermediaries like syndicates or funds.
Distributed Team [Product & Ops]: A workforce operating remotely across multiple locations or geographies.
Down Round [Funding]: A funding round at a lower valuation than the previous round.
Drag-Along Rights [Legal][Equity]: A clause allowing majority shareholders to compel minority shareholders to agree to a company sale.
Dry Powder [Fund Operations]: Committed but unallocated capital in a VC fund, available for investments.
DSO (Days Sales Outstanding) [Metrics]: The average number of days a startup takes to collect payment after a sale.
Due Diligence [Fund Operations]: The comprehensive review of a startup’s financials, legal status, team, and operations before investment.
Data Network Effects [Product & Ops]: A dynamic where increased user data improves a product’s performance, creating a competitive advantage (e.g., AI-driven personalization).
Domain Expertise [Ecosystem]: Specialized knowledge in a specific industry or sector, valued in founders and investors.
Dual-Class Shares [Equity]: A share structure granting certain shareholders (e.g., founders) enhanced voting rights.
Duration Risk [Fund Operations]: The risk of capital being locked in illiquid investments for an extended period.
Disintermediation [Product & Ops]: Eliminating intermediaries in a supply chain or process, often through technology (e.g., direct-to-consumer platforms).

E

Early Exit [Funding]: An acquisition or IPO occurring earlier than anticipated, often at a smaller scale than a typical exit.
EBITDA [Metrics]: Earnings Before Interest, Taxes, Depreciation, and Amortization, a profitability metric used in valuations and EU ESG reporting.
Ecosystem [Ecosystem]: The interconnected network of startups, investors, accelerators, talent, and institutions in the startup landscape.
Employee Stock Option Plan (ESOP) [Equity]: A program granting employees options to purchase company shares at a fixed price, aligning incentives (see also section C).
Enterprise Value (EV) [Metrics]: A company’s total value, calculated as market capitalization plus debt, minus cash.
Equity Crowdfunding [Funding]: Raising capital from retail investors in exchange for equity via platforms like Seedrs or Crowdcube.
Equity Financing [Funding]: Raising capital by issuing shares, diluting existing ownership.
EUIPO (European Union Intellectual Property Office) [EU-Specific]: EU agency responsible for trademark and design rights registration.
European Innovation Council (EIC) [EU-Specific]: EU program providing grants and equity to high-potential startups, supporting innovation (see also section C).
Exit Multiple [Metrics]: A valuation ratio comparing a company’s exit price to a metric like revenue or EBITDA.
Exit Strategy [Funding]: A plan for investors or founders to realize returns, typically via acquisition, IPO, or secondary sale.
Exclusivity Period [Legal]: A period during which a startup agrees not to negotiate with other investors, typically during term sheet discussions.
Embedded Finance [Product & Ops]: Integrating financial services (e.g., payments, lending) into non-financial platforms or products.
Enterprise SaaS [Product & Ops]: Software-as-a-service solutions designed for large organizations, often with complex integrations.
Employee Liquidity [Equity]: Mechanisms allowing employees to sell or access cash from their equity before a full exit.
Equity Compensation [Equity]: Non-cash compensation in the form of stock options or shares, used to attract and retain talent.
EIC Fund [EU-Specific]: The equity investment arm of the European Innovation Council, supporting high-growth startups (see also section C).
ESG (Environmental, Social, Governance) [EU-Specific]: Criteria for responsible investing, mandated for many EU funds under the Sustainable Finance Disclosure Regulation (SFDR).
Evergreen Fund [Fund Operations]: A VC fund with no fixed term, reinvesting returns and maintaining ongoing operations.
Expansion Stage [Funding]: A startup phase beyond early traction, typically raising Series B or C rounds to scale operations or enter new markets.

F

Fair Market Value (FMV) [Metrics]: The estimated market value of a company or asset, often used in option pricing or valuations.
Family Office [Funding]: Private investment firms managing wealth for high-net-worth families, increasingly active in EU early-stage VC.
FF (Friends and Family) Round [Funding]: An informal early funding round sourced from a founder’s personal network.
Fintech [Product & Ops]: Companies leveraging technology to deliver financial services (e.g., payments, lending).
First Close [Fund Operations]: The initial closing of a VC fund where committed capital is legally secured from limited partners.
Flat Round [Funding]: A funding round at the same valuation as the previous round, indicating stable but not growing valuation.
Follow-on Investment [Funding]: Additional capital invested in an existing portfolio company in later rounds.
Founder Vesting [Legal][Equity]: A schedule ensuring founders earn equity over time, often with a cliff, to align long-term commitment.
Freemium [Product & Ops]: A business model offering a free basic product with paid premium features to drive adoption.
Friends of the Fund [Ecosystem]: A network of advisors, mentors, or connectors supporting a VC fund with dealflow, expertise, or introductions.
Full Ratchet [Legal][Equity]: An anti-dilution mechanism adjusting earlier investors’ share price to match a lower price in a down round.
Fund Administrator [Fund Operations]: A third-party provider managing a fund’s back-office tasks, such as accounting, audits, and capital calls.
Fund Lifecycle [Fund Operations]: The stages of a VC fund, from fundraising to capital deployment, portfolio management, and exits.
Fund of Funds [Funding]: An investment vehicle allocating capital to multiple VC funds rather than directly into startups.
Fully Diluted Shares [Equity]: The total number of shares outstanding if all convertible securities (e.g., options, CLNs) are exercised.
Founder Market Fit [Ecosystem]: The alignment between a founder’s expertise, experience, and the market they’re targeting.
Functional Moat [Product & Ops]: A competitive advantage derived from superior user experience, integrations, or workflows.
Fund Return Multiple [Metrics]: The multiple on invested capital (MOIC) a VC fund returns to its limited partners.

G

G&A (General and Administrative Expenses) [Metrics]: Non-production expenses, including HR, legal, finance, and office costs, tracked for operational efficiency.
Gamification [Product & Ops]: Using game-like elements (e.g., badges, leaderboards) to boost user engagement in non-game products.
GDPR (General Data Protection Regulation) [EU-Specific]: EU regulation governing personal data privacy and protection, impacting startups’ operations.
General Partner (GP) [Fund Operations]: The managing partner in a VC firm, responsible for investment decisions and fund operations.
GTM (Go-to-Market) Strategy [Product & Ops]: A plan detailing how a startup will reach customers, deliver value, and drive adoption.
Growth Equity [Funding]: Investments in later-stage startups with strong revenue growth, typically taking minority stakes.
Growth Hacking [Product & Ops]: Creative, low-cost strategies leveraging data and automation for rapid user or revenue growth.
Growth Marketing [Product & Ops]: A data-driven marketing approach emphasizing testing, iteration, and measurable ROI.
Greenfield Market [Ecosystem]: An untapped or underdeveloped market with minimal competition, offering high growth potential.
Greenwashing [EU-Specific]: Misleading environmental claims, scrutinized under EU regulations like SFDR and the EU Taxonomy.
Gross Margin [Metrics]: Revenue minus cost of goods sold, expressed as a percentage, indicating profitability.
Gross Merchandise Value (GMV) [Metrics]: Total value of goods or services sold through a marketplace before deducting fees.
Governance Rights [Legal][Equity]: Contractual rights enabling shareholders to influence company decisions or oversight.
Grant Funding [Funding]: Non-dilutive capital from governments or institutions, often for R&D or social impact projects.
Growth Stage [Funding]: Later-stage startups scaling operations, typically raising Series C or later rounds.
Generalist Fund [Fund Operations]: A VC fund investing across multiple industries, contrasting with sector-specific funds.
Geographic Arbitrage [Product & Ops]: Building teams or operations in lower-cost regions while targeting high-value markets.
GICS (Global Industry Classification Standard) [Ecosystem]: A taxonomy for classifying sectors, used by investors for benchmarking.
Governance Token [Product & Ops]: A token granting voting rights in decentralized systems, relevant in EU Web3 startups under MiCA.
Golden Handcuffs [Equity]: Equity or incentives designed to retain key talent by making departure financially costly.
Gross Burn [Metrics]: Total monthly cash expenditure before accounting for revenue, used to assess runway.
Growth Capex [Metrics]: Capital expenditures for future growth, such as infrastructure or equipment.
GP Commit [Fund Operations]: The capital a General Partner personally invests in the fund, typically 1–2% of the total.

H

Hard Cap [Funding]: The maximum capital a fund or startup round is permitted to raise.
Hurdle Rate [Fund Operations]: The minimum return a VC fund must achieve before General Partners earn carried interest.
Holding Company [Legal]: A parent entity owning shares in subsidiaries, sometimes used in startup group structures.
HR Tech [Product & Ops]: Technology enhancing hiring, retention, payroll, or workforce management processes.
Hybrid Fund [Fund Operations]: A fund combining venture capital, private equity, or debt investment strategies.
High-Touch Sales [Product & Ops]: A sales approach involving personalized outreach, demos, and negotiations, often for B2B.
Horizontal SaaS [Product & Ops]: SaaS solutions applicable across industries, such as CRM or project management tools.
Home Market Bias [Ecosystem]: Investors’ preference for startups in their home country, common in EU hubs like Berlin or Paris.
Holding Period [Fund Operations]: The duration a fund or investor holds an investment before exiting.
Hyperscaler [Product & Ops]: Large-scale cloud providers (e.g., AWS, Azure, Google Cloud) critical for tech startups.
Health Tech [Product & Ops]: Startups innovating in healthcare, including diagnostics, telemedicine, or medical devices.
Hostile Takeover [Legal]: An acquisition attempt opposed by the target company’s management, rare in early-stage VC.
Hockey Stick Growth [Metrics]: A sharp, exponential growth curve following a period of slower scaling.
Heatmap [Product & Ops]: A visual tool showing user engagement patterns within a product or website.
High Conviction Bet [Funding]: A significant investment in a single startup based on strong belief in its potential.
Hackathon [Ecosystem]: A time-bound event where teams build prototypes, often for innovation or talent scouting.
Hybrid Work Model [Product & Ops]: A workplace strategy blending in-office and remote work arrangements.
Holding Rights [Legal][Equity]: Shareholder rights to maintain or influence ownership, often tied to governance.
HRIS (Human Resources Information System) [Product & Ops]: Software centralizing HR data, such as payroll and employee records.
High Water Mark [Fund Operations]: A performance benchmark ensuring carried interest is paid only after recovering prior losses.

I

ICO (Initial Coin Offering) [Funding]: A fundraising method using crypto tokens, less common in the EU due to MiCA regulations.
IM (Information Memorandum) [Fund Operations]: A document outlining a VC fund’s strategy, team, and terms for prospective LPs.
Incubator [Ecosystem]: A program supporting idea-stage or early startups, often providing resources before accelerator programs.
Indemnification [Legal]: A clause protecting a party from liability caused by another’s actions, common in investment agreements.
Index Fund [Funding]: A passive investment vehicle tracking a market index, sometimes an LP in VC funds.
Indicative Terms [Legal]: Preliminary deal terms offered before full due diligence or final negotiations.
Independent Board Member [Legal]: A board member unaffiliated with management or investors, ensuring unbiased governance.
Institutional LP [Fund Operations]: Large entities (e.g., pension funds, endowments) investing as limited partners in VC funds.
Interquartile Range (IQR) [Metrics]: A statistical measure of the middle 50% of a dataset, used in VC benchmarking.
IRR (Internal Rate of Return) [Metrics]: The annualized return rate on an investment or fund, a key VC performance metric.
Inside Round [Funding]: A funding round led solely by existing investors, often to support continued growth.
Insurtech [Product & Ops]: Technology improving insurance processes, such as underwriting or claims management.
IPO (Initial Public Offering) [Funding]: A private company’s first sale of shares to the public market.
Impact Investing [Funding]: Investments aiming for measurable social or environmental impact alongside financial returns, aligned with EU ESG goals.
Information Rights [Legal]: Investors’ contractual right to access a startup’s financial and operational data.
Internationalization [Product & Ops]: Adapting a product or service for multiple countries or markets, common in EU startups.
Investment Committee (IC) [Fund Operations]: A VC firm’s group responsible for approving or rejecting investments.
Investor Update [Fund Operations]: Regular reports from startups to investors, detailing progress, metrics, and challenges.
Inside Sales [Product & Ops]: Remote sales conducted via calls or email, contrasting with field sales.
Idea Maze [Ecosystem]: A framework assessing a founder’s understanding of market challenges and opportunities.
Illiquidity Discount [Metrics]: A valuation reduction reflecting the difficulty of selling a private, illiquid asset.

J

J-Curve [Metrics]: A graph showing VC fund returns, with early losses followed by later gains as investments mature.
Joint Venture (JV) [Legal]: A collaboration between two or more parties on a specific project, sharing risks and rewards.
Jurisdiction Risk [Legal]: Legal and regulatory risks of operating or investing in a region, heightened in the EU due to regulatory fragmentation.
Just-in-Time Hiring [Product & Ops]: Hiring talent aligned with immediate milestones or funding to minimize cash burn.
Job Board [Ecosystem]: A platform for posting startup or VC roles, often curated within EU startup networks.
Judgment-Based Investing [Funding]: A VC strategy prioritizing intuition and experience over data-driven analysis.
JOBS Act [Legal]: U.S. law easing equity crowdfunding; EU equivalents include ECSPR for broader retail investment.
Joint Liability [Legal]: Shared legal responsibility among co-founders, board members, or investors for company obligations.
Jumpstart Fund [Funding]: Public or quasi-public initiatives providing early capital to boost local innovation, common in EU regions.
Junior Capital [Funding]: Subordinated debt or equity ranking below senior debt in repayment priority.
Just Walk Out Tech [Product & Ops]: Checkout-free retail technology, like Amazon Go, adopted by EU startups in retail tech.
Jet Lag Hiring [Product & Ops]: Informal term for hiring across time zones with minimal time overlap, common in distributed teams.
Journal Club [Ecosystem]: A VC or startup group discussing research, market trends, or essays to inform strategy.
J-Corp [Legal]: A non-standard term for startup-friendly corporate structures in some jurisdictions, less common in the EU.
Job-To-Be-Done (JTBD) [Product & Ops]: A framework for understanding customer needs to improve product-market fit.
Judicial Review [Legal]: A legal process challenging M&A or regulatory decisions, potentially delaying transactions.
Joint Control [Legal]: A governance model where two parties share equal decision-making authority.
Jamstack [Product & Ops]: A web architecture prioritizing speed by decoupling frontend and backend, popular in EU SaaS.
Justification Slide [Funding]: A pitch deck slide explaining why now is the optimal time to invest in the team or market.
Journey Mapping [Product & Ops]: Visualizing user experience across touchpoints to identify and address pain points.
J-Curve Recovery [Metrics]: A rebound in investment value after initial losses, common in emerging markets or turnarounds.

K

Key Man Clause [Legal]: A fund provision pausing investments if a critical partner leaves, protecting LPs.
KPI (Key Performance Indicator) [Metrics]: Measurable metrics tracking a startup’s progress toward strategic goals.
Know Your Customer (KYC) [Legal]: EU AMLD-mandated process for verifying client identities, critical in fintech and crypto.
Knowledge Transfer [Product & Ops]: Sharing expertise from experienced team members or advisors to new hires.
K-1 (Tax Form) [Legal]: A U.S. form reporting LP income or losses; EU funds use AIFMD-compliant reporting instead.
Killer Feature [Product & Ops]: A unique product feature driving adoption and differentiation.
Key Account Manager [Product & Ops]: A role managing relationships with a startup’s most valuable clients.
Kickoff Call [Ecosystem]: The initial meeting for a project, investment, or partnership to align stakeholders.
Knowledge Moat [Product & Ops]: A competitive advantage from deep, proprietary domain expertise.
Key Risk Factors [Fund Operations]: Major risks highlighted in fundraising or investment documents.
Killer Slide [Funding]: A pitch deck slide anchoring the narrative, often highlighting traction or team strength.
K-Score [Metrics]: A proprietary metric in deal-sourcing tools to assess early startup traction or engagement.
Knockout Round [Funding]: A VC process to quickly filter out deals not meeting key investment criteria.
Knowledge Graph [Product & Ops]: A structured data system linking concepts, used in AI and SaaS platforms.
KOL (Key Opinion Leader) [Ecosystem]: Influential figures whose endorsements impact niche markets or sectors.
Keep-Option Open Strategy [Funding]: A founder tactic delaying fundraising or pivots to maintain flexibility.
Knowledge Buyout [Ecosystem]: An acquisition driven by IP or talent, similar to acqui-hiring (see section A).
KYC-as-a-Service [Product & Ops]: A compliance solution for identity verification, widely used in EU fintech.
Knowledge Debt [Product & Ops]: Internal complexity from undocumented or siloed knowledge, hindering efficiency.
Kickstarter Model [Funding]: Crowdfunding via pre-sales to validate product demand before launch.

L

Lead Investor [Funding]: The investor leading a funding round, setting terms and conducting primary due diligence.
LTV (Lifetime Value) [Metrics]: Total expected revenue from a customer over their relationship with the company.
LP (Limited Partner) [Fund Operations]: An investor in a VC fund with limited liability and no management role.
Liquidity Preference [Legal][Equity]: A clause prioritizing investor payouts in a liquidation event, often 1x or higher.
Loan-to-Value Ratio (LTV) [Metrics]: A venture debt metric assessing collateral risk relative to loan size.
Lean Startup [Product & Ops]: A methodology emphasizing rapid experimentation and customer feedback loops.
Late-Stage VC [Funding]: Investments in mature startups nearing IPO or acquisition, often Series C or later.
Letter of Intent (LOI) [Legal]: A non-binding agreement outlining key terms for a future deal or investment.
Lock-Up Period [Legal]: A post-IPO period during which insiders cannot sell shares, typically 90-180 days.
Low Code / No Code [Product & Ops]: Platforms enabling product development with minimal coding, boosting agility.
Lead Time [Product & Ops]: The duration from ideation to delivery of a feature or product.
Long Tail Market [Ecosystem]: A market with many niche segments, each serving small but valuable audiences.
Liquidation Event [Funding]: An exit (e.g., M&A, IPO) converting equity into cash for shareholders.
Liquidity Event [Funding]: An event (e.g., acquisition, IPO) enabling shareholders to convert equity to cash.
Layer 1 / Layer 2 [Product & Ops]: Blockchain terms for base protocols (Layer 1) and scaling solutions (Layer 2), relevant in EU Web3.
Loss Ratio [Metrics]: An insurtech metric dividing claims paid by premiums earned, indicating profitability.
Legal DD (Due Diligence) [Legal]: Reviewing a startup’s legal structure, contracts, and liabilities before investment.
Lead Velocity Rate [Metrics]: Month-over-month growth in qualified leads, a key sales metric.
Launch Partner [Ecosystem]: An early adopter or promoter of a product during its initial rollout.
LatAm (Latin America) [Ecosystem]: A growing market for EU startups and VCs, especially in fintech and SaaS.
Listing [Funding]: Registering shares for trading on a public exchange, typically during an IPO.

M

M&A (Mergers and Acquisitions) [Funding]: The process of merging with or acquiring companies, often a key exit strategy for startups.
Management Fee [Fund Operations]: An annual fee (typically 2%) paid by LPs to GPs to cover fund operational costs.
Marketplace Startup [Product & Ops]: A business connecting buyers and sellers, earning revenue via transaction fees or subscriptions.
Market Sizing [Metrics]: Estimating the total addressable market (TAM) to assess a startup’s growth potential.
Mark-to-Market [Metrics]: Revaluing investments based on current market prices, used in fund reporting.
Marketing Stack [Product & Ops]: The suite of tools used for customer acquisition, engagement, and analytics.
Matching Equity [Funding]: Equity investments required to match EU grants or public funds, common in programs like the EIC Fund.
Maximum Dilution Threshold [Legal][Equity]: A clause capping the dilution founders or early investors face in future rounds.
Media-for-Equity [Funding]: A model where media firms provide advertising space in exchange for startup equity, prevalent in Europe.
Memo (Investment Memo) [Fund Operations]: A VC document detailing the rationale, risks, and terms for a proposed investment.
Merge Tag [Product & Ops]: A dynamic field in email or CRM tools for personalizing user communications.
Milestone-Based Investing [Funding]: Disbursing capital in tranches tied to a startup achieving specific goals.
Minimum Viable Product (MVP) [Product & Ops]: The simplest product version launched to gather user feedback and iterate.
Mission-Driven Startup [Ecosystem]: A startup prioritizing societal or environmental impact alongside financial goals.
Monthly Active Users (MAU) [Metrics]: The number of unique users engaging with a product within a month.
Monthly Recurring Revenue (MRR) [Metrics]: Predictable monthly revenue from subscriptions, a key SaaS metric.
Moonshot [Ecosystem]: A high-risk, high-reward startup tackling ambitious, large-scale problems.
Multi-Stage Fund [Fund Operations]: A VC fund investing across startup stages, from pre-seed to growth.
Multiple on Invested Capital (MOIC) [Metrics]: The total return to investors divided by the capital invested.
MVP Burn Rate [Metrics]: The monthly cash spent on developing and iterating the minimum viable product.
Market Expansion Strategy [Product & Ops]: A plan to enter new geographic or vertical markets to drive growth.
Margin Compression [Metrics]: A reduction in profit margins due to competition or rising costs.
Marketplace Liquidity [Product & Ops]: The ease with which buyers and sellers connect in a marketplace platform.
Manager-Led Secondary [Funding]: A secondary sale of shares facilitated by a VC fund manager to provide liquidity.

N

Net Dollar Retention (NDR) [Metrics]: A metric showing revenue growth or loss from existing customers, key for SaaS.
Net Promoter Score (NPS) [Metrics]: A measure of customer satisfaction based on likelihood to recommend the product.
Network Effects [Product & Ops]: A dynamic where a product’s value increases as more users engage with it.
Non-Dilutive Funding [Funding]: Capital, such as grants or loans, that doesn’t require equity surrender.
Non-Compete Clause [Legal]: A contract preventing founders or employees from launching competing ventures.
Notice Period [Legal]: The mandatory time an employee or founder must provide before exiting a role.
Normalized Valuation [Metrics]: A valuation adjusted for outliers to enable fair startup comparisons.
North Star Metric [Metrics]: The primary metric reflecting a product’s core value to users.
Notified Body [EU-Specific]: An EU-designated organization assessing regulatory compliance, critical for health tech under MDR/IVDR.
Non-Binding Term Sheet [Legal]: A preliminary investment terms outline, not legally enforceable in the EU.
Non-Participating Preferred Shares [Equity]: Preferred shares receiving only their liquidation preference, not additional payouts.
New Fund Manager [Fund Operations]: A VC General Partner raising their first institutional fund.
No-Code Tool [Product & Ops]: Platforms enabling app or workflow creation without coding expertise.
Noise-to-Signal Ratio [Metrics]: An informal measure of irrelevant versus relevant data in pitches or analytics.
Nominee Director [Legal]: A director appointed to represent a stakeholder, often with limited decision-making power.
Native Monetization [Product & Ops]: Generating revenue directly through a product’s core features, common in EU fintech.
Networked Product [Product & Ops]: A product designed to connect users, enhancing engagement and retention.
Notional Valuation [Metrics]: A hypothetical valuation used for internal planning or secondary market pricing.
Name Recognition [Ecosystem]: The prominence of a founder, startup, or investor within the EU VC ecosystem.
NDA (Non-Disclosure Agreement) [Legal]: A contract ensuring confidentiality, often GDPR-compliant in the EU.
Niche Fund [Fund Operations]: A VC fund specializing in specific sectors, like AI, climate, or fintech.

O

Operating Partner [Fund Operations]: A VC team member providing operational support to portfolio companies.
Option Pool [Equity]: Equity reserved for future hires, negotiated during funding to attract talent.
Open Source Startup [Product & Ops]: A company building on or contributing to open source software, common in EU tech.
Onboarding Flow [Product & Ops]: The user journey from signup to realizing a product’s initial value.
Ownership Cap Table [Equity]: A table detailing shareholder ownership, equity types, and dilution.
OPEX (Operating Expenses) [Metrics]: Daily business costs, excluding capital expenditures, tracked for efficiency.
Operational Due Diligence [Fund Operations]: A review of a startup’s operations, team, and execution capabilities.
One Pager [Funding]: A concise document summarizing a startup’s pitch, used for initial investor outreach.
Overhang [Funding]: Unallocated shares or equity that may cause future dilution.
Options Vesting Schedule [Equity]: The timeline for employee stock options to become exercisable.
Oversubscribed Round [Funding]: A funding round where investor demand exceeds the capital being raised.
Open Round [Funding]: A fundraising round still open to new investors.
Operating Model [Product & Ops]: The internal structure and processes driving a startup’s operations.
Optionality [Product & Ops]: Strategic flexibility in a startup’s business plan or structure.
Outsized Return [Metrics]: An investment return significantly above the portfolio average.
Ownership Threshold [Legal][Equity]: A shareholding level granting specific governance or control rights.
Office Hours [Ecosystem]: Scheduled sessions where investors or mentors provide founders with feedback.
Operator Angel [Funding]: An angel investor with operational startup experience, often active in EU ecosystems.
One-Time Revenue [Metrics]: Non-recurring revenue, less valued than recurring revenue in SaaS.
Operating Margin [Metrics]: Profit after operating expenses, expressed as a percentage of revenue.
On-Chain Metrics [Metrics]: Blockchain-based performance data for Web3 startups, increasingly relevant in the EU.
Option Exercise Price [Equity]: The price at which employees or investors can buy shares via options.
Organizational Debt [Product & Ops]: Accumulated inefficiencies from outdated processes or structures.

P

Pari Passu [Legal]: A clause ensuring investors receive equal treatment in payouts or rights, common in EU term sheets.
Participating Preferred Shares [Equity]: Preferred shares allowing investors to receive their liquidation preference plus a share of remaining proceeds.
Patrons.vc [Ecosystem]: A stealthy but unreasonably committed scouting outfit rumored to be behind every well-sourced European pre-seed round you saw last week. Uses spreadsheets, intuition, and a mild obsession with founder quality.
Payback Period [Metrics]: The time required to recover the cost of acquiring a customer, critical for SaaS and marketplaces.
Payout Waterfall [Legal][Equity]: The prioritized order of proceeds distribution in a liquidation event.
Performance Fee [Fund Operations]: A fee paid to fund managers for returns exceeding a benchmark, often tied to carried interest.
Phantom Equity [Equity]: Synthetic equity granting cash payouts mimicking ownership without actual shares.
Pitch Deck [Funding]: A presentation outlining a startup’s business model, traction, and vision for investors.
Platform Fund [Fund Operations]: A VC fund providing capital and operational support, such as talent or tech services.
Post-Money Valuation [Metrics]: A startup’s valuation after a funding round, including newly raised capital.
Pre-Emptive Rights [Legal][Equity]: Rights allowing investors to participate in future rounds to maintain ownership percentage.
Pre-Money Valuation [Metrics]: A startup’s valuation before new capital is raised in a funding round.
Pre-Seed Round [Funding]: An early fundraising stage, typically before achieving product-market fit.
Preferred Shares [Equity]: Shares granting priority over common shares in liquidation or dividend payouts.
Primary Capital [Funding]: New capital invested directly into a company, unlike secondary share purchases.
Pro Rata Rights [Legal][Equity]: Rights enabling investors to invest in later rounds to preserve their ownership stake.
Product-Market Fit (PMF) [Product & Ops]: When a product meets strong market demand, driving retention and growth.
Product-Led Growth (PLG) [Product & Ops]: A strategy where product usage fuels customer acquisition and expansion.
Profitability Horizon [Metrics]: The projected timeframe for a startup to achieve sustainable profitability.
Proof of Concept (PoC) [Product & Ops]: A prototype or demo validating a product’s core assumptions.
Prospect Theory [Ecosystem]: A behavioral theory explaining investor decision-making under uncertainty, relevant to VC psychology.
Public Market Readiness [Funding]: A startup’s readiness for an IPO, assessed by compliance, scale, and metrics.
Push vs. Pull GTM [Product & Ops]: Contrasting outbound sales (push) with inbound, organic growth (pull) strategies.
Purpose-Driven Startup [Ecosystem]: A startup prioritizing social or environmental missions alongside profit.
Put Option [Legal][Equity]: A contract allowing investors to sell shares back to the company under specific conditions.

Q

Qualified Financing [Legal]: A funding round triggering conversion of SAFEs or convertible notes into equity.
Qualified Small Business Stock (QSBS) [Legal]: A U.S. tax incentive for startup investors; EU equivalents include EIS/SEIS in the UK.
Qualified Institutional Buyer (QIB) [Funding]: A U.S. term for entities eligible for restricted securities; EU deals use AIFMD-compliant investors.
Quality of Earnings (QoE) [Fund Operations]: An audit assessing the sustainability and reliability of a startup’s earnings.
Quasi-Equity [Funding]: Hybrid financing like convertible notes or revenue-based financing, blending debt and equity traits.
Quota Share Agreement [Legal]: A risk-sharing contract in insurtech, niche but relevant for insurance SaaS startups.
Quant Fund [Fund Operations]: A data-driven fund using algorithms, rare in early-stage VC but emerging in EU deep tech.
Quorum [Legal]: The minimum number of stakeholders required to validate a governance decision or vote.
Quick Ratio [Metrics]: In SaaS, the ratio of new and expansion revenue to churn; or a financial metric of short-term assets to liabilities.
Quiet Period [Legal]: A pre-IPO phase restricting company communications to avoid market manipulation.
Queryable Data Layer [Product & Ops]: A data architecture enabling real-time queries, key for EU AI and SaaS startups.
Quick Win [Product & Ops]: A low-effort feature or improvement delivering immediate user or business value.
Q&A Round [Ecosystem]: A session where founders answer live investor or community questions, often post-pitch.

R

Ramp Period [Metrics]: The time for a new sales hire to reach full productivity, typically 3-6 months.
R&D Tax Credit [EU-Specific]: Incentives across EU member states (e.g., UK R&D relief, French CIR) reimbursing R&D expenses.
RAR (Risk-Adjusted Return) [Metrics]: A metric adjusting investment returns for associated risks, used by LPs.
Recapitalization [Funding]: Restructuring a startup’s capital, often post-down round or for secondary liquidity.
Recurring Revenue [Metrics]: Predictable revenue from subscriptions or contracts, a core SaaS metric.
Redemption Rights [Legal][Equity]: A clause allowing investors to sell shares back to the company under set conditions.
Referral Engine [Product & Ops]: A system incentivizing word-of-mouth growth through rewards or tracking.
Regional VC [Fund Operations]: A VC fund targeting a specific, often underserved, geographic region in the EU.
RegTech [Product & Ops]: Startups automating compliance with regulations like GDPR or AMLD, thriving in the EU.
Reinvestment Risk [Metrics]: The risk that investment returns cannot be reinvested at comparable rates, relevant for LPs.
Relationship Capital [Ecosystem]: The value derived from a founder’s or fund’s network in the EU VC ecosystem.
Retention Rate [Metrics]: The percentage of users or revenue retained over a period, critical for SaaS.
Revenue-Based Financing (RBF) [Funding]: Financing repaid as a percentage of monthly revenue, non-dilutive in nature.
Reverse Diligence [Ecosystem]: Due diligence by founders or LPs on investors or VC funds.
Right of First Refusal (ROFR) [Legal][Equity]: A right to match third-party share offers before they are sold.
Rising Tide Fund [Funding]: A fund supporting diverse founders or managers, gaining traction in the EU.
Roadshow [Funding]: A series of investor meetings to pitch a fundraising round or IPO.
Runway [Metrics]: The time a startup can operate before exhausting cash reserves, based on burn rate.
Rolling Fund [Fund Operations]: A subscription-based VC fund allowing ongoing LP commitments, growing in EU VC.
Revenue Churn [Metrics]: Recurring revenue lost due to cancellations or downgrades, a key SaaS metric.
Retention Bonus [Legal]: A payment to retain key employees post-acquisition or during transitions.
Round Size [Funding]: The total capital raised in a single funding round.
Remote-First Startup [Product & Ops]: A company designed with remote work as the primary operational model.
Responsive Web App [Product & Ops]: A web product adapting seamlessly across devices, vital for EU SaaS.
Rollover Equity [Legal][Equity]: Equity reinvested by shareholders into an acquiring company during M&A.

S

SAFE (Simple Agreement for Future Equity) [Funding]: A flexible funding instrument converting to equity in a future round, increasingly used in EU startups under ECSPR.
Scalability [Product & Ops]: A startup or product’s ability to handle growing demand without compromising performance.
Scouting Program [Ecosystem]: A structured initiative to source startups for VCs, common in EU programs like EIC Accelerator.
Secondary Sale [Funding]: The sale of existing shares to new investors, providing liquidity without new capital issuance.
Sector Thesis [Fund Operations]: A VC’s strategic focus on specific sectors (e.g., fintech, climate) guiding investment decisions.
Seed Round [Funding]: A startup’s first major equity financing round, typically post-pre-seed, to build product or traction.
Sensitivity Analysis [Metrics]: A financial modeling technique assessing how input changes impact outcomes.
Serial Entrepreneur [Ecosystem]: A founder with a track record of building and exiting multiple startups.
Serviceable Addressable Market (SAM) [Metrics]: The realistic portion of the total addressable market a startup can target.
Shareholders’ Agreement [Legal]: A contract among shareholders defining rights, obligations, and governance rules.
Shortlisting [Fund Operations]: The process of filtering startup pitches for deeper due diligence.
Signaling Risk [Funding]: The risk that lack of follow-on investment from early backers signals weakness to new investors.
Silent Partner [Legal]: An investor providing capital without active involvement in startup operations.
Single vs. Multi-GP Fund [Fund Operations]: A fund structure with one General Partner or multiple, impacting decision-making.
Slicing Pie [Equity]: A dynamic equity allocation method based on contributions, used by early-stage EU teams.
Soft Commitment [Funding]: A non-binding indication of investment interest, often verbal or informal.
Soft Landing [Ecosystem]: A graceful exit or acqui-hire for a struggling startup, minimizing losses.
SPV (Special Purpose Vehicle) [Legal]: An entity created to pool investor capital for a specific investment.
Stakeholder Map [Product & Ops]: A visual outlining key actors influencing or affected by a startup’s operations.
Stealth Mode [Ecosystem]: A startup operating discreetly, common in EU deep tech to protect early innovation.

T

TAM (Total Addressable Market) [Metrics]: The total potential demand for a product or service in a given market.
Tag-Along Rights [Legal][Equity]: Rights allowing minority shareholders to join a majority shareholder’s share sale.
Technical Debt [Product & Ops]: The long-term cost of prioritizing quick fixes over sustainable code solutions.
Term Sheet [Legal]: A non-binding document outlining key investment terms, standard in EU VC deals.
Time to Market [Metrics]: The duration to develop and launch a new product or feature.
Tokenomics [Product & Ops]: The economic design of tokens in blockchain startups, critical for EU Web3 under MiCA.
Top Quartile Fund [Fund Operations]: A VC fund ranking in the top 25% of peer performance, measured by IRR or TVPI.
Trade Sale [Funding]: The acquisition of a startup by another company, often a strategic buyer.
Trailing Twelve Months (TTM) [Metrics]: Financial performance over the past 12 months, used for benchmarking.
Trailing Valuation [Metrics]: A valuation based on historical metrics like revenue or EBITDA, versus forward projections.
Tranche [Funding]: Funding released in stages, tied to milestones or performance targets.
Turnaround CEO [Ecosystem]: An executive hired to revive a struggling startup’s operations or strategy.
TVPI (Total Value to Paid-In Capital) [Metrics]: A metric measuring a VC fund’s total value (realized + unrealized) relative to invested capital.
Tech DD (Technical Due Diligence) [Fund Operations]: An evaluation of a startup’s codebase, tech stack, and team capabilities.
Token Warrant [Legal]: A contract granting future token rights, used in EU Web3 funding rounds.
Top-Down vs. Bottom-Up Forecasting [Metrics]: Forecasting methods using market data (top-down) or internal metrics (bottom-up).
Triage [Fund Operations]: A quick evaluation process to prioritize or reject inbound startup deals.

U

Unicorn [Ecosystem]: A privately held startup valued at $1 billion or more, e.g., Klarna or Revolut in the EU.
Uncapped SAFE [Funding]: A SAFE without a valuation cap, riskier for investors but used in competitive EU rounds.
Unbundling [Product & Ops]: Creating specialized startups by isolating features from legacy platforms.
Unit Economics [Metrics]: The revenue and cost associated with a single unit of product or service, key for profitability.
Usage-Based Pricing [Product & Ops]: Pricing based on customer usage, common in EU SaaS and cloud startups.
Up Round [Funding]: A funding round at a higher valuation than the previous round, signaling growth.
Upfront Capital [Funding]: Capital paid before services or equity issuance, used in EU media or B2B deals.
Upsell Rate [Metrics]: The percentage of customers upgrading to higher plans or purchasing add-ons.
Underwriting [Fund Operations]: The process of assessing and accepting investment risks, more common in later-stage EU funds.
Universal Vesting Schedule [Equity]: A standard 4-year vesting plan with a 1-year cliff, widely used in EU startups.
Unallocated Options [Equity]: Ungranted shares in an option pool, reserved for future hires.
Underrepresented Founder [Ecosystem]: A founder from groups historically underrepresented in EU VC, supported by initiatives like Women TechEU.
Usage Churn [Metrics]: The decline in product engagement, even if users haven’t formally canceled.
Upfront Warrant Coverage [Legal][Equity]: An agreement to issue warrants at investment, common in EU venture debt.
Unrealized Gains [Metrics]: The appreciation in investment value not yet sold or liquidated.
User Acquisition Cost (UAC) [Metrics]: The total cost to acquire a new user, broader than CAC, used in consumer tech.

V

Valuation Cap [Legal]: The maximum valuation at which a SAFE or convertible note converts to equity.
Vesting Cliff [Equity]: The initial period (typically 1 year) before any equity vests.
Vesting Schedule [Equity]: The timeline over which employees or founders earn equity, often 4 years.
Vertical SaaS [Product & Ops]: SaaS solutions tailored for specific industries, e.g., healthcare or logistics.
Viral Coefficient [Metrics]: The average number of new users each existing user generates; above 1 indicates viral growth.
Viral Loop [Product & Ops]: A self-sustaining cycle of user referrals driving growth, common in EU consumer apps.
Virtual Data Room (VDR) [Fund Operations]: A secure online platform for sharing due diligence documents.
Vision Deck [Funding]: A pitch deck emphasizing long-term vision over current metrics, used in early EU rounds.
VC Angle [Ecosystem]: A publication focused on early-stage European venture. Tracks firm activity, founder movements, market shifts, and the people shaping the ecosystem. Published by Patrons.vc.
Venture Debt [Funding]: Debt financing for VC-backed startups, often with warrants, growing in EU markets.
Valuation Step-Up [Metrics]: The valuation increase between consecutive funding rounds.
Veto Right [Legal]: A right to block specific startup decisions, often granted to key investors.
Voting Rights [Legal][Equity]: Rights tied to equity ownership, exercised in shareholder meetings or governance.
Venture Studio [Ecosystem]: An organization that builds and spins out startups, prominent in EU hubs like Berlin.
Vesting Acceleration [Legal][Equity]: A clause accelerating equity vesting upon events like acquisitions.
Volatility [Metrics]: The degree of fluctuation in a startup’s valuation or Web3 token prices.

W

• WACC (Weighted Average Cost of Capital) [Metrics]: The average rate a company pays its capital providers, commonly used in DCF models for valuation.

• Warm Intro [Ecosystem]: An introduction facilitated by a trusted mutual contact, preferred over cold outreach in VC networking.

• Warrant [Legal]: A security granting the right to purchase shares at a set price in the future, often used in bridge financing.

• Waterfall Model [Fund Operations]: The structured order and priority for distributing proceeds to limited partners (LPs) and general partners (GPs).

• Web3 [Product & Ops]: The decentralized web powered by blockchain and token-based economics, driving new startup models.

• Wearables [Product & Ops]: Smart, body-worn devices collecting health or activity data, a growing EU startup sector.

• Whale Investor [Ecosystem]: A high-net-worth individual or fund capable of making substantial investments.

• Whitelisting [Product & Ops]: Granting select users early or beta access to a product or feature.

• Win Rate [Metrics]: The ratio of successful customer or deal conversions to total attempts, key for sales and fundraising.

• Working Capital [Metrics]: Current assets minus current liabilities, used to evaluate a company’s liquidity.

• Work-for-Equity [Equity]: Compensation through ownership stakes instead of salary, common in early-stage startups.

• Write-Off [Fund Operations]: A fund’s formal recognition of an investment as a total loss.

• Write-Up [Fund Operations]: An upward adjustment in a portfolio company’s valuation recorded by a fund.

X

• XIRR (Extended Internal Rate of Return) [Metrics]: A metric used by LPs to assess fund performance with irregular cash flows over time.

• XML (Extensible Markup Language) [Product & Ops]: A data format used in integrations, APIs, and financial reporting.

• X-as-a-Service [Product & Ops]: A SaaS-inspired model for verticalized tech services (e.g., MLaaS, DaaS).

• XFN (Cross-Functional Team) [Product & Ops]: A team with members from diverse departments, common in agile startups.

• XaaS Metrics [Metrics]: Key indicators for as-a-service businesses, such as ARPU, NRR, and churn.

Y

• Yield Curve [Metrics]: A graph of interest rates across maturities, influencing VC macro conditions.

• Year-End Run Rate [Metrics]: Projected annual revenue based on the final month or quarter’s performance.

• YoY Growth (Year-over-Year Growth) [Metrics]: The percentage change in a metric compared to the same period last year.

• Yellow Flag [Fund Operations]: A notable but non-critical risk identified during due diligence.

• Y Combinator (YC) [Ecosystem]: A globally influential US-based accelerator with significant impact on European VC.

• Yield Investor [Funding]: An investor prioritizing steady returns over capital appreciation.

Z

• Zero Coupon Convertible Note [Funding]: A debt instrument with no interest that converts into equity at a discount.

• Zero to One [Ecosystem]: A concept popularized by Peter Thiel for creating entirely new innovations.

• ZIRP (Zero Interest Rate Policy) [Macro]: A central bank policy of near-zero rates, historically boosting startup valuations.

• Zombie Startup [Ecosystem]: A company operating without significant growth or exit potential.

• Zone of Genius [Ecosystem]: A founder’s unique area of exceptional skill, often discussed in founder-fit evaluations.

• Z-Score [Metrics]: A statistical measure of how far a data point deviates from the mean, used in risk analysis.

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