Glossary entry

A/B testing is a method in the field of marketing, product & web development and data analysis in which two variants (A and B) of an element - e.g. a website, an email, an interface or an advert - are compared with each other. The aim is to use real user data to find out which variant delivers better results. The target group is randomly divided into two groups, each of which sees one of the variants. Key figures such as click rate, conversion rate or dwell time are then analysed in order to make data-based decisions for optimisation.

Recurring revenue describes regularly recurring income that provides a stable source of revenue for companies through subscriptions or contracts.

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 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.

The full-time equivalent (FTE) is a key figure that is used to compare the work performance of part-time and full-time employees.

The gross margin is a business ratio that describes the difference between sales and the direct costs of goods or services sold.

Gross profit is the difference between a company's sales revenue and its direct production costs.

Non-recurring revenue (NRR) refers to revenue that is non-recurring and does not occur regularly or repeatedly.

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.