Glossary entry

Metrics are quantitative measures that startups use to monitor and analyse the performance of their company, the effectiveness of their strategies and the achievement of their goals.

The jam paradox describes the phenomenon that too many options, such as a large number of jam varieties, can lead to decision overload for consumers and reduce their willingness to buy.

Marketing automation refers to the use of software and technologies to control and optimise marketing processes and campaigns across various channels in an automated and targeted manner.

Market fit refers to the state in which a product or service is precisely tailored to the needs and wishes of the target market and thus generates a high level of demand.

(Customer) Lifetime Value, LTV, (or CLV) is an essential metric that quantifies the total value that a customer generates over the entire duration of their relationship with a company.

Liquidity refers to the ability of a start-up or company to fulfil its short-term liabilities by having sufficient liquid funds or assets that can be quickly liquidated.

Liquidation preference is a clause in the investment terms that specifies how the proceeds will be distributed among the shareholders in the event of liquidation, sale or other exit scenario.

The lean startup method is an approach to founding a company that is based on the principle of lean development in order to bring products or services to market with minimum effort and maximum speed.

A lead start-up is characterised by its leading role in a specific market segment or technology by offering innovative solutions that set trends and significantly influence industry development.