Vesting is the process by which employees, founders or investors acquire their shares or share options over a fixed period of time, thereby promoting their long-term commitment to the company.
Glossary entry
What are venture capital firms, and how do they support start-ups with growth and funding?
Venture capital companies are specialised financial institutions that invest capital, expertise and networks in start-ups and young companies with high growth potential.
What is venture capital and how does it finance the growth of start-ups?
Venture capital (VC) refers to capital provided by investors or venture capital companies to finance start-ups and young companies with high growth potential.
What is a VC pitch, and how do start-ups win over venture capital investors?
A VC pitch is a precise presentation in which start-ups present their business idea, their team, their market opportunities and their financial forecasts in order to attract venture capital investors for an equity investment.
What is a value proposition, and how does it convince customers of the benefits of an offer?
The value proposition of a company or product defines the unique value it offers customers and emphasises why it is preferable to competing offers.
What does ‘user experience’ (UX) mean, and how does it improve the use of digital products?
User experience (UX) describes the totality of experiences and perceptions that users have when interacting with a product, service or system.
What is a USP and how does it set an offering apart from the competition?
The Unique Selling Proposition (USP) is the decisive feature that sets a product, service or company apart from the competition and offers a specific benefit for the target customer.
What does ‘Unique Perceived Benefit’ (UPB) mean, and how does it set an offer apart from the competition?
Unique Perceived Benefit (UPB) refers to the unique benefit or advantage that a product or service offers from the customer's perspective and that sets it apart from the competition.
What are unit economics, and how do they indicate whether a business model is scalable?
Unit economics refers to the direct revenues and costs associated with the production and sale of a single unit of a product or service and provides deep insights into profitability at the individual transaction level.