The Vocabulary You Need to Survive in the Startup Ecosystem
Got into the startup world and everyone talks about MVP, pivot, churn and you don't know what it means? Stop nodding in silence. Learn the 5 words you absolutely need to master.
❌ The problem:
In pitch decks, investor meetings and one-on-ones, everyone uses terms nobody explained to you.
✅ The solution:
This glossary gives you the 5 most important words in the ecosystem, explained so you sound like an experienced founder.
MVP
Minimum Viable Product - The simplest version that solves the main problem.
Real example:
Airbnb started with an MVP: photos of an air mattress in an apartment. No app, no integrated payments, no reviews. They just validated if someone would pay to sleep at a stranger's place.
Avoid this mistake:
❌ Thinking MVP = incomplete product. ✅ MVP = essential product without decorations.
Pivot
Changing a fundamental part of the business model based on learning.
Real example:
Instagram started as Burbn (check-in app with photos). They pivoted to just photos because that's what people used. Today: one billion users.
Avoid this mistake:
❌ Pivot ≠ failure. ✅ Pivot = adjusting course with data, not on a whim.
Churn
Percentage of customers who cancel your service in a period.
Real example:
If you have 100 customers and 5 cancel this month, your monthly churn is 5%. With 8% or more, you're filling a bucket with holes: you sell but don't retain.
Avoid this mistake:
❌ Focusing only on acquiring more customers. ✅ Lowering churn can be 2x more profitable than just growing.
Revenue
Money coming in from sales, before subtracting costs.
Real example:
Startup with $100K in monthly revenue but $150K in expenses = losing $50K per month. High revenue doesn't mean profit. Investors see both numbers.
Avoid this mistake:
❌ Confusing revenue with profit or with available cash. ✅ Revenue shows demand, profit shows sustainability.
Burn Rate
Speed at which you spend money each month.
Real example:
You have $300K in bank, spend $50K/month more than you generate = 6 months of runway. After that, you raise a round or close. Simple and brutal.
Avoid this mistake:
❌ Spending without measuring runway. ✅ Every decision must consider how much it reduces your runway.
Frequently asked questions
Am I ready with just these 5 words?
These 5 cover 80% of conversations with investors, co-founders and early team. They're what you'll use and hear the most. You can learn more later, but start by mastering these.
Does this only apply to tech startups?
No. These concepts apply to any startup: SaaS, ecommerce, D2C, B2B. They're universal in the entrepreneurial ecosystem.
How do I use this in a pitch with investors?
Instead of saying 'we sell well', you say: 'We have $50K MRR with 3% monthly churn and $30K burn rate. With this traction, we're seeking $500K to extend runway to 18 months.' Sounds 10x more professional.
Want to sound like an experienced founder in your next pitch?
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