Welcome to the ultimate startup glossary - your comprehensive reference book for all relevant terms related to the world of startups! Whether you are just at the beginning of your entrepreneurial journey or in the middle of the startup development process, you will find everything you need to know here.
Glossary
Rule of Forty: Key figure for growth and profitability
The Rule of Forty is an important metric for SaaS companies that combines revenue growth and profitability to assess the health of a business.
Family office: asset management and growth opportunities for start-ups
Family offices help wealthy families with asset management and offer advisory services. They are also valuable investors for start-ups, as they invest for the long term and provide extensive networks and expertise.
Full-time equivalent (FTE): Standardised key figure for work capacity and personnel planning
The full-time equivalent (FTE) is a key figure that is used to compare the work performance of part-time and full-time employees.
Gross margin: a key measure of profitability
The gross margin is a business ratio that describes the difference between sales and the direct costs of goods or services sold.
Gross profit (gross profit): The difference between sales and production costs
Gross profit is the difference between a company's sales revenue and its direct production costs.
NRR (non-recurring revenue): Measure for non-recurring revenue
Non-recurring revenue (NRR) refers to revenue that is non-recurring and does not occur regularly or repeatedly.
Negative liquidation preference: an investment model for the early phase
The negative liquidation preference is an alternative investment model in start-up financing that represents a special arrangement in the event of liquidation. Here, investors do not receive preferential access to the assets, but the founders are paid out first.
Hurdle shares: the innovative financial instrument for start-ups
Hurdle shares are a special form of...