ARPA (Average Revenue per Account) measures the average revenue per customer and helps companies to analyse monetisation and customer loyalty.
What is ARPA (Average Revenue per Account) and why is this metric important?
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Glossary entry
What does ‘exit’ mean, and what role does it play in the context of start-ups?
The term "exit" refers to the strategy used by founders, investors or owners to sell or reduce their stake in a company, typically through a sale, merger, takeover or initial public offering (IPO).
What is EXIST, and what role does the programme play for start-ups originating from the academic sector?
EXIST is a funding programme of the German federal government that aims to support innovative start-up projects from the world of science.
What is an Employee Stock Ownership Plan (ESOP) and why is it important?
An Employee Stock Ownership Plan (ESOP) is an employee share ownership programme that offers employees the opportunity to acquire shares in the company, often at discounted conditions.
What is an entrepreneur, and what role do they play in the economic system?
An entrepreneur is a person who founds a company, takes risks and develops innovative solutions to bring new products or services to the market.
What is an elevator pitch and what is it used for?
The elevator pitch is a short, concise presentation that aims to convey the essence of a startup or business concept within the time span of a lift ride, typically in 30 to 60 seconds.
What is equity and why is it important for businesses?
Equity refers to the funds that belong to the owners of a company or start-up and result from the difference between assets and liabilities.
What is the EBIT multiple and how is it used in company valuation?
The EBIT multiple is a key figure for company valuation that represents the ratio of the company value to operating earnings before interest and taxes (EBIT).
What is an earn-out, and how does this arrangement work in company sales?
An earn-out is an agreement in the context of company takeovers in which part of the purchase price is linked to the achievement of certain future performance targets of the acquired company.