Essential tech-terms you should know when chasing investors. Feel free to comment and share with us any other terms you think are essential!
by: Marina Andrieu
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Private individuals often exited entrepreneurs, who are investing privately in new startups. They bring money but also expertise and network, The BA like to invest in groups.
The process to look for money to finance a company in order to develop a product and reach future milestones. It is also the act of distributing shares of your companies to an investor.
Minimum Viable product. Concept born from the Lean StartUp book and methodology. This is the minimum “viable” product that you can show to a customer so you can learn and iterate on your initial ideas. Often includes only one main feature that allows founder to test the concept and market.
A short presentation of the startup that includes components like Problem, solution or business model and cash flow details. This is usually necessary for the investor before or after the meeting to understand the main metrics of the company.
A short presentation of a business idea to a potential investor, usually takes 3 to 5 minutes.
Series of funding received from investors, in exchange for shares. For each round, a startup undergoes an evaluation process performed by the investors to assess whether the company is making progress.
Often also referred to as seed capital, is usually the first round of investment for startups at an early stage, where in exchange for the capital, the investor receives equity.
A professional investor managing a fund whose job is investing in high-risk/high opportunity startups. Out of the hundred deals they receive, they might invest in only a few companies per year.
A segment of investing / startups. Eg Healthtech, Fintech, InsurTech, GreenTech, SpaceTech, Ecommerce. Investors might specialise in certain types of verticals.
This article was first published in the Silicon Luxembourg magazine. Get a copy now!