Glossary entry

Ideation is the creative process of finding and developing ideas in which start-ups generate concepts and solutions to create new products, services or business models.

The hockey stick effect describes a growth curve in the economy, and particularly in start-ups, that shows a sudden and sharp increase after initially moderate growth, similar to the shape of a hockey stick.

A hackathon is an intensive event, often lasting several days, at which programmers, designers and entrepreneurs come together to work in teams on the development of new software solutions, products or services.

The Digital Markets Act (DMA) is a European Union regulation that aims to create fair competitive conditions in the digital market. The Act is aimed in particular at large platform companies that act as gatekeepers, i.e. provide central access points for digital services. The aim is to prevent abuse of market power and promote innovation and free competition.

Growth hacking is a marketing technique used by start-ups to achieve rapid growth and user acquisition with creative, cost-effective strategies.

Scalability describes the ability of a business model, technology or process to grow efficiently and without loss of quality as demand increases. A scalable company can increase turnover without increasing costs to the same extent. Digital products such as SaaS solutions in particular are considered highly scalable, as they can be delivered to many users at the same time with minimal additional effort. Scalability is a key factor for rapid, sustainable growth.

The gross burn rate measures the monthly spending pace of a startup without taking income into account. It provides information about the speed at which the company is using up its cash reserves and is crucial for the capital life cycle and financial strategy.

Green tech, short for green technologies, comprises start-ups and companies that develop innovative solutions and technologies to address environmental problems and promote sustainable development.

The safety margin refers to the distance between the actual value of a company or project and the point at which losses would occur. It serves as a buffer to minimise risks and compensate for financial fluctuations. A larger safety margin increases the likelihood that the company will remain profitable even in difficult times.