Business glossary, A–Z
83 terms every founder hears — explained simply, with ₹ examples and links to the Playbook chapter that goes deeper.
A
B
B2B / B2C / D2CStartupBusiness-to-business, business-to-consumer and direct-to-consumer business models.Board of directorsLegal & complianceThe group that oversees a company’s strategy, management and compliance.BootstrappingFundingBuilding a company with your own money and its revenue, without outside investors.Break-even pointFinanceThe sales level at which revenue exactly covers total costs.Burn rateFinanceHow much cash a company spends per month.
C
CAC (Customer Acquisition Cost)GrowthThe total sales and marketing cost to win one new customer.CAC payback periodGrowthHow long it takes to earn back the cost of acquiring a customer.Cap tableFundingA table showing who owns what percentage of a company.Cash flowFinanceThe movement of cash into and out of a business.CCPS (Compulsorily Convertible Preference Shares)FundingPreference shares that must convert into equity shares — the usual instrument for VC rounds in India.CGTMSEFundingA credit guarantee scheme that helps MSMEs get collateral-free loans.ChurnGrowthThe percentage of customers (or revenue) lost over a period.CliffLegal & complianceThe initial period before any shares or options vest — commonly one year.Cohort analysisGrowthTracking groups of users who joined in the same period to compare their behaviour over time.Concierge MVPProductDelivering your service manually to early customers before automating it.Contribution marginFinancePrice minus all variable costs for one unit or order.Convertible noteFundingA debt instrument that converts into equity at a later funding round.Corporate governanceLegal & complianceThe rules, controls and practices by which a company is directed and controlled.
D
DecacornStartupA private startup valued at $10 billion or more.DilutionFundingThe reduction in existing shareholders’ percentage ownership when new shares are issued.DIN (Director Identification Number)Legal & complianceA unique number required for every company director in India.Down roundFundingA funding round at a lower valuation than the previous one.DPIIT recognitionLegal & complianceOfficial recognition as a startup under the Startup India programme.DRHP (Draft Red Herring Prospectus)Legal & complianceThe preliminary prospectus a company files with SEBI before an IPO.DSC (Digital Signature Certificate)Legal & complianceA digital signature used to sign filings on government portals such as MCA.Due diligenceFundingInvestors’ checks on a company’s legal, financial and technical health before investing.
E
EBITDAFinanceEarnings before interest, taxes, depreciation and amortisation — a measure of operating profit.ESOP (Employee Stock Option Plan)Legal & complianceOptions that let employees buy company shares at a set price, usually vesting over time.ExitFundingAn event where founders and investors convert their shares into cash, such as an acquisition or IPO.
F
G
GMV (Gross Merchandise Value)FinanceThe total value of goods sold through a marketplace, before deductions.Go-to-market (GTM)GrowthYour plan for reaching customers, selling to them and growing.GrantFundingNon-repayable money given for a specific purpose, without taking equity.Gross marginFinanceRevenue minus direct costs, as a percentage of revenue.GST (Goods and Services Tax)Legal & complianceIndia’s indirect tax on the supply of goods and services.GSTINLegal & complianceThe 15-character GST identification number given to registered businesses.
I
ICP (Ideal Customer Profile)GrowthA description of the type of customer most likely to buy and succeed with your product.Input tax credit (ITC)Legal & complianceGST paid on business purchases that can be set off against GST owed on sales.Invoice discountingFinanceGetting cash early against unpaid invoices, for a fee.IPO (Initial Public Offering)FundingWhen a company first sells shares to the public and lists on a stock exchange.
L
Liquidation preferenceFundingAn investor’s right to get their money back before other shareholders in a sale or liquidation.LLP (Limited Liability Partnership)Legal & complianceA partnership with limited liability and lighter compliance than a company.LTV (Lifetime Value)GrowthThe total contribution a customer generates over their relationship with you.
M
MarketplaceStartupA platform connecting buyers and sellers, usually earning a commission per transaction.MUDRA loanFundingLoans for micro and small non-farm enterprises under the PM MUDRA Yojana.MVP (Minimum Viable Product)ProductThe smallest version of a product that tests your riskiest assumption with real users.
N
O
P
PivotStartupA fundamental change in a startup’s product, customer or business model based on what it has learned.Post-money valuationFundingThe value of a company immediately after new investment.Pre-money valuationFundingThe value of a company before new investment is added.Pre-seed roundFundingThe earliest outside funding, used to build an MVP and find early customers.Private Limited companyLegal & complianceThe most common legal structure for Indian startups that plan to raise investment.Product–market fit (PMF)ProductWhen a product satisfies strong demand in a market — users retain, return and recommend it.
R
RetentionGrowthThe percentage of customers who keep using or buying over time.Revenue-based financingFundingFunding repaid as a share of future revenue, without giving up equity.ROC filingsLegal & complianceAnnual and event-based filings a company makes with the Registrar of Companies.RunwayFinanceHow many months a company can operate before its cash runs out.
S
SaaS (Software as a Service)StartupSoftware delivered online on a subscription basis.SAFE / iSAFEFundingA simple agreement for future equity; in India, adapted versions are typically structured as CCPS.Secondary saleFundingExisting shareholders selling their shares to new investors.Section 80-IACLegal & complianceAn income-tax provision giving eligible recognised startups a tax holiday for a set number of years.Seed roundFundingEarly funding to find product–market fit and build a repeatable go-to-market.Series AFundingThe first major venture capital round, used to scale a business that has found product–market fit.Series B, C and beyondFundingLater venture rounds that fund expansion into new markets, products and scale.SoonicornStartupAn informal term for a startup expected to reach a $1 billion valuation soon.SPICe+Legal & complianceThe MCA’s integrated online form for incorporating a company in India.Startup India Seed Fund SchemeFundingA government scheme supporting early-stage startups through selected incubators.
T
U
V
ValidationStartupGathering evidence that customers have a problem and will pay for your solution.ValuationFundingWhat a company is considered to be worth, often set when investors buy shares.Venture capital (VC)FundingProfessional investors who fund high-growth startups in exchange for equity.Venture debtFundingLoans for venture-backed startups, used to extend runway with little dilution.VestingLegal & complianceEarning shares or options over time instead of all at once.