Glossary.

A high-net-worth individual who invests their own personal capital in early-stage startups, typically at pre-seed or seed stage. Unlike VCs, angels invest from their own balance sheet with full discretion and faster decision-making.

A strategic framework developed by Igor Ansoff that plots four growth strategies across two dimensions: existing or new products, and existing or new markets.

The internal constitution of a company, governing board composition, voting rights, share transfer rules, and internal governance procedures.

A business strategy framework advocating the creation of uncontested new market spaces rather than competing in existing, crowded markets.

Funding a startup entirely from personal resources and business revenue, without any external investment. Retains full equity and control.

The rate at which a startup spends its cash reserves, typically measured as a monthly figure. Runway = Cash / Monthly Burn Rate.

Total sales and marketing spend in a period divided by the number of new paying customers acquired in that same period.

A complete, current record of all equity ownership in a company, showing each shareholder, their shares held, and their ownership percentage.

A unique identifier issued to an Indian company upon incorporation by the Ministry of Corporate Affairs.

The percentage of customers who stop using a product in a given period (typically monthly). Customer Lifetime = 1 / Churn Rate.

A debt instrument that converts to equity at a future funding round, carrying an interest rate and a maturity date.

A business model where a brand sells directly to end customers, bypassing distributors and retailers, typically resulting in higher margins and greater customer data ownership.

The reduction in existing shareholders' ownership percentage that occurs when new shares are issued in a funding round.

Department for Promotion of Industry and Internal Trade: the Indian government body that officially recognises startups and grants access to associated benefits.

An electronic equivalent of a physical signature, required for filing forms with the Ministry of Corporate Affairs.

A structured investor review of a startup's legal, financial, and commercial claims before committing to an investment.

A plan allowing employees to purchase company shares at a predetermined price after a specified vesting period.

A structured assessment of whether a business idea can viably be built and operated, covering market, technical, operational, and financial dimensions.

A root-cause analysis technique developed at Toyota: asking "why" five times in sequence to trace a problem back to its structural origin.

The total value of goods or services transacted through a marketplace platform, before deducting the platform's commission.

(Revenue minus Cost of Goods Sold) divided by Revenue. The proportion of revenue retained after direct production or delivery costs.

A plan defining how a startup will reach its target customers and deliver its value proposition at launch and through early growth.

Legal rights protecting creations of the mind: inventions (patents), brand identifiers (trademarks), creative works (copyright), and confidential information (trade secrets).

A product framework holding that customers do not buy products; they hire them to accomplish specific functional, social, or emotional jobs.

A one-page business model template adapted for early-stage startups by Ash Maurya, covering problem, solution, metrics, channels, and unfair advantage.

A business structure combining partnership flexibility with limited personal liability for its partners. Less suitable for VC fundraising than a Private Limited Company.

The total gross profit a business expects to generate from a single customer over their entire relationship with the company.

The Indian government body responsible for company registration, regulation, and ongoing corporate compliance.

A document defining a company's stated purpose (objects clause) and its relationship with the external world.

The simplest possible thing that can be built or done to test the most critical assumption with real users.

A contract preventing parties from sharing each other's confidential information with third parties.

A product phenomenon where each additional user increases the value of the product for all existing users, creating compounding defensibility.

A goal-setting framework pairing a qualitative objective (directional) with quantitative, time-bound key results (proof of achievement).

The time required to recover the cost of acquiring a customer from their gross profit contribution. CAC / (Monthly Revenue × Gross Margin %).

The state where a product satisfies strong, sustained demand in a clearly defined market segment, characterised by high retention and organic growth.

An investor right allowing them to participate in future funding rounds at their proportional share, maintaining their ownership percentage.

The number of months a startup can continue operating at its current burn rate before running out of cash.

A non-debt investment instrument developed by Y Combinator that converts to equity at the next priced round, with no interest or maturity date.

The portion of TAM that a company can realistically reach given its geographic, linguistic, and go-to-market constraints.

A survey-based PMF test: if 40% or more of active users say they would be "very disappointed" without the product, PMF is likely present.

The realistic market share a startup can capture in its first 2–3 years of operation.

A documented, step-by-step process for a repeatable task, enabling consistent execution without requiring founder judgment each time.

A consolidated MCA form for company incorporation in India, covering multiple registrations simultaneously.

The total global revenue opportunity for a product or service category if the company had 100% market share.

Legal protection for a brand name, logo, or tagline, registered on a class-specific basis with IP India.

The financial dynamics of a single customer relationship: typically CAC, LTV, gross margin, and payback period.

India's real-time payment infrastructure operated by NPCI, enabling instant digital bank transfers.

The maximum valuation at which a SAFE or convertible note converts to equity, protecting early investors if the company grows rapidly before conversion.

A clear statement of what a business offers, to whom, and why it is better than what the customer currently uses.

Professional investment firms that manage pooled capital from limited partners and invest in high-growth startups.

A timeline over which equity is progressively earned by a founder or employee, protecting the company if they leave early.