A To Z Of The Startup World

Updated: Nov 3, 2019

It's a hard life being an entrepreneur. And yet having a smashing idea isn't enough- you've got to talk the talk! It's a whole other world with lots of terms you might not know- but definitely need to know.

This guide will give you a better context to understand the language of startups, venture capitalists and angel investors, all through the ABC's!



A program where beginning startups are given th\e mentorship, resources, and sometimes first investments needed in order to accelerate growth. We have our own pre-accelerator programs here at Tech7Starter ! Start Your Way for your first taste of the entrepreneurship world, or Launcher for turning your idea's into real ventures! You can read about them here.

B- B2B

Business to Business. Companies that sell a product or service to another company, rather than individual consumers.


Basically means raising money from the public. Specifically, an online way for non-profit organisations to get donations. For example, Kickstarter and

D- Disruptive Technology

An innovation or technology is disruptive when it "disrupts" an existing market by doing things such as: challenging the prices in the market, displacing an old technology, or changing the market audience, like UBER


Originally a term from the biology world, it's a community of interacting organisms and their physical environment. In the startup world, it meand a community of innovation and entrepreneurship, mutually learning and cooperating with each other. Tech7's goal is to create and maintain a growing ecosystem, here in the Negev.


A founder is a person who comes up with an idea and then transforms it into a business or startup. Founders can set up a business on their own, or they can do it with others. For example, Larry Page is a founder of Google.


Basing on gamification can be one of the ways of standing out of the startups' crowd. Gamification is the process of taking something that is not a game (e-learning system, todo list, CRM) and integrating game mechanics (points, prizes, ranks) into it to motivate participation, engagement, and loyalty. Often, implementing only one games' element into the project can take it to the next level and make it addictive.


The term hackathon is a blended word – a combination of “hacking” and “marathon.” “Hacking” in this context refers to solving technical problems in new and innovative ways. Hackathons are usually centered around a certain topic, which in turn has an influence on the participants- Like certain types of applications (mobile apps, web applications, etc.), a specific service (Facebook, Google), or simply on a general topic ( government, accessibility, digital health, etc.).


Original, unexpected, fresh, never been thought of before, never been seen before, creative, new, useful. According to Forbes, innovation is

"Challenging conventional notions of how things have been done before, and bringing ideas from one industry to another, or from one geographic region to another"


When two heads are better than one. A joint venture (JV) is a business arrangement in which two or more companies agree to combine their resources for the purpose of accomplishing a specific task. This task can be a new project or any other business activity. For example, partnering up with a local business to enter a foreign market.


How do you know if your marketing and growth plan for your startup is actually working? While ‘trusting your gut’ is essential in entrepreneurial success, A Key Performance Indicator (KPI) is a measurable value that demonstrates how effectively a company is achieving their goals .Every company has different goals and should have different KPIs.


People or businesses who might potentially become a client


An MVP product is a product with only a basic set of features, released in order to test a new business idea and test people’s reactions. The idea of an MVP is to get your audience’s feedback first – before releasing the complete product.


" It's not what you know, it's who you know" is not just a cliche. It is crucial for startupers to expand their circles of acquaintances, to find out about job opportunities in their fields, and to increase their awareness of news and trends.


Outsourcing is to get resources and services from a foreign supplier. This is most commonly used in industries where there is either a shortage of of particular positions or where the cost of labor is too high. For example, software developers or designers.


Presenting the vision and business plan of your startup to VCs with the aim of receiving an investment, usually involves an accompanying slideshow. An "elevator pitch" refers to a 30-second presentation of your idea that you are ready to pitch anywhere and everywhere in a casual conversation, like in an elevator.

Q- Qַ&A

Questions and Answers- when pitching your idea, whether to investors or at a casual dinner, you must always have answers prepared for every and any question.


This is the much-talked-about "return on investment." It's the money an investor gets back as a percentage of the money he or she has invested in a venture. For example, if a VC invests $2 million for a 20 percent share in a company and that company is bought out for $40 million, the VC's return is $8 million.


The first round of small, early-stage investment from family members, friends, banks or an investor is commonly referred to as seed funding.


Proof that your hypothesis is working. People are actually buying your product or using your service. This is one of the most exciting times in a startup!


A privately held startup valued at over $1B, a rare and almost mythical occurrence (that's where the name comes from!). Some well known unicorn startup companies include Tesla and AirBnB.


Venture Capital is financing provided by firms to small, high-risk, startup companies with large growth potential in return for equity. Investors working for venture capital firms that choose to invest in specific companies are typically called VCs.


Couldn’t leave this one out. Startup life demands real loyalty and commitment to your idea, demanding long hours and round-the-clock business leading us all to be workaholics.

X- X-IT (Exit)

Founders sometimes develop an exit business strategy before or during their entrepreneurial journey. An exit is a way to transition the ownership of your company to another company and pay back your investors. Basically, it’s how startup founders get rich.


Yield is a major decision-making tool used by both companies and investors. It is a financial ratio that indicates how much a company pays in dividend/interest to investors, each year, relative to the security price. Yield is a measure of cash flow that an investor is getting on the money invested in a security.


People who are only in business for the money usually crash and burn. You need to be passionate, devoted, enthusiastic and much more to survive in startup world- that’s having zeal!

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