This is what we mean when we use these words:

Technology: IT, SaaS, Web, Mobile, Hardware – applied in areas of: Healthtech, Fintech, Security, Enterprise, Consumer, Civic, SportsTech, IoT/M2M, Edutech, etc.

Founder: A person who forms a new for-profit business entity.

Entrepreneur: A person who identifies opportunity for improvement, starts a for profit business to address it using their resources, and is remunerated relative to associated risk and economic value created for the recipient.

Startup: newly established business set in motion

Investor: A person that puts money into the entrepreneur’s business with the expectation of achieving a profit.

General tech startup metrics and meanings:

Monthly Recurring Revenue (MRR): Monthly total of paid customer fees

Annual Recurring Revenue (ARR): Recurring revenue on an annual basis

Average revenue per account: MRR/total # of customers

Gross Profit: Total revenue minus the cost of goods sold

Annual Contract value: Value of a contract over one year

Total Contract value: Value of one-time and recurring charges

Lifetime Value: Prediction of net profit from the entire future relationship with a customer

Deferred revenue: Amount that was received by a company in advance of earning it.

Billings: current quarter revenue + deferred revenue from previous quarter.

Customer Acquisition Cost (CAC): Full cost of acquiring one customer.

Customer concentration risk: Revenue from largest customer/total revenue

Daily Active Users: Users other than one-time users per day

Monthly active users: users other than one time users per month

Activation rate: number of users taking a specific action to get value out of a product.

Month over month growth: Average of monthly growth rate from previous month.

Compounded Monthly Growth rate:
(latest month/first month)
(1/# of months) -1

Monthly churn: Lost customers this month/prior month total

Retention by cohort: % of original installed base (first month) that are still transacting

Gross Churn rate: MRR lost in a given month/MRR at the beginning of the month.

Net Churn: MRR lost – MRR from upsets) this month / MRR at the beginning of the month

Monthly Cash Burn Rate – how much spent on all operations per month

Net Burn Rate: Revenues – gross burn

Gross burn: Monthly expenses + any other cash outlays

Total Addressable Market: Revenue Opportunity available for a product

Annual Run Rate: Projection of current MRR into the future, annualized.

Gross Margin: Difference between revenue and cost of goods sold

Sell-through rate: number of units sold in a period/number of items at the beginning of period

Network effects: effect of one user on the value of that product to other people

Viral Coefficient: average number of invitations sent existing use

Net Promoter Score: How likely a user is to recommend your product to a friend

Platform Risk: dependence on specific platform or channel