Throughout the process of recording the Float or Founder podcast, I realized a lot of the same terms kept popping up, from the founders or from us. We end up using a lot of shorthand that is common in the world of entrepreneurs, tech startups, and founders in the executive suite, but may not be as familiar to our listeners. I wanted to create a glossary of every term we encounter from our founders or use ourselves so that you can refer to it for a quick definition. I will add to this list over time. Please see the definition of the top terms used by founders and entrepreneurs on the Float or Founder podcast.
What is an Advisory Board?
The term “advisory board” refers to the person or people that provide advice, strategy, connections, and more to the founding member(s) of a company. The advisory board does not sit on your official Board of Directors and does not often take any equity in your company. The advisory board often balances the skills of the individual or people they are advising and are a knowledgable support system, especially during early stage companies.
What is an Angel Investor?
The term “angel investor” refers to an informal investor, or someone not part of an investment firm, who invests their own personal funds into a business in exchange for an anticipated high return. An angel investor will invest in early stages of a business in exchange for a percentage of equity of the business.
What is a B Corp?
A Certified B Corporation is a company that has gone through an extensive legal process proving they are socially, environmentally, and otherwise operating repsonsibly.
What is a Beta Release?
The term “beta release" refers to a pre-release of a product, often digital as it’s part of the software development cycle, for a select group of users or designated target market to use the product and test its functionality prior to general public release. A beta release allows for proper testing and feedback to make any necessary iterations prior to general public release.
What is a Board of Directors?
The term “Board of Directors” refers to a group of people who are elected to represent the shareholders’ interests, make and vote on major decisions, and supervise the activities of the business. Often, your Board of Directors is formed from equity investors. Every company is required to have a Board of Directors. There is a lot involved in selecting the Board of Directors and there are associated laws, which may vary depending on which country your company is operating out of.
What is an Bootstrapping?
The term “bootstrapping” derives from the common saying of, “pull yourself up by your own bootstraps” and, in business, refers to the ability to launch and run your own company off of your own resources (or the company’s resources reinvested into it). Typically, when a company is “bootstrapping” they are not taking outside investor funding or any external input.
What is the C-Suite?
The term “c-suite” refers to the executives holding titles with the word “chief” in them, such as Chief Executive Officer.
What is Capital?
The term “capital” is defined as financial assets or wealth. In terms of running a business, capital is the money that is invested, available, or contributed to the growth of the business, often in exchange of equity and/or seats on the Board of Directors, towards the company or person that is deemed to be the investment.
What is a Chief Executive Officer (CEO)?
The term “Chief Executive Officer,” or CEO, refers to the highest ranking person in the company who is in charge of all executive decision making and being a liaison between the company and the Board of Directors. Many founders take on the role of CEO in their own companies.
What is a Chief Marketing Officer (CMO)?
The term “Chief Marketing Officer,” or CMO, refers to the highest ranking person in marketing and is in charge of all executive decision making for the marketing function of the company.
What is a Chief Technology Officer (CTO)?
The term “Chief Technology Officer,” or CTO, refers to the highest ranking person in the technology aspect of the company and is in charge of all executive decision making for the technology function of the company. In early stage technology companies, the CTO is typically responsible for building out the product or building out the team responsible for the product.
What is a Demographic?
The term “demographic” refers to the structure of a population or market. A demographic contains characteristics of the popular or market, such as age, ethnicity, gender, education, income, habits, interests, and more.
What is Equity?
The term “equity” is defined as the value of the shares issues by a company. In the case of running a company, equity refers to the stake or number of shares an investor holds in a company.
What is an Investor?
The term “investor” refers to a person, people, or organization that invests capital into a company as an investment. The investor typically sees the company they invest in as one that will grow in value and provide them a high return on their investment.
What is a Marketplace App/Platform?
The term “marketplace” or “marketplace app” or “marketplace platform” refers to a product that connects two sides of a market (buyers and sellers) for the purpose of providing a product or service to one side of the marketplace from the other side of the marketplace.
What is a Minimum Viable Product (MVP)?
The term “Minimum Viable Product,” also referred to as an MVP, refers to the minimally sufficient product that will be released to early adopters in order to get proper data and feedback to iterate and pivot the product or company as necessary.
What is a Pitch?
The term “pitch” is defined, in terms of business, as a presentation or introduction of an idea, product, or company to potential partners, investors, or customers. Any time a company is being “sold” or “marketed” to someone or something for an intended purpose (use, sale, investment), it is being “pitched."
What is a Pitch Competition?
The term “pitch competition” refers to a competitive environment where companies are pitted against one another to pitch, or sell, their company to judges for prizes. Many pitch competitors often the opportunity to receive money, investors, feedback, and networking opportunities.
What is a Pre Seed Funding?
The term “pre seed funding” or “pre seed investment” or “pre seed capital” refers to an early stage investment made by an individual, people, or organization. The idea of pre seed funding is to inject a small monetary investment into an early stage company so it can get off ground. Pre seed investors often invest in exchange for an equity stake in the company.
What is a Venture Capitalist (VC)?
The term “Venture Capitalist,” or VC, is defined as a person, group of people, or organization that financially invests in new ventures, startup ventures, or other ventures that are looking for high growth.
If there are more terms you’d like to see us define, please Tweet them to us at @floatorfounder.