Customer Acquisition Costs (CAC) describe the average cost incurred by a company to acquire a new paying customer. This includes the relevant expenditure on marketing and sales over a specific period.
A cap table (capitalisation table) shows a company’s ownership and shareholding structure. It provides an overview of which individuals or institutions hold shares in the company and the size of their respective holdings.
Cash flow describes a company’s cash inflows and outflows over a specific period. It shows how available cash changes as a result of operating activities, investments and financing.
The cash burn rate describes how quickly a start-up is using up its available cash. It is usually expressed as a monthly figure and indicates how much capital a company needs to finance its day-to-day operations whilst outflows exceed inflows.
The churn rate is a key performance indicator that shows the proportion of existing customers lost within a specific period. It is expressed as a percentage and indicates the extent to which a company is affected by cancellations or the termination of existing customer relationships.
‘Closing’ refers to the legal and financial completion of a funding round. This involves implementing the previously agreed investment terms, so that investors receive the agreed stake and the start-up is entitled to the pledged capital or the agreed payments.
A co-founder is a person who, together with at least one other person, sets up a company and plays an active role in building it up. Co-founders often develop the business idea together, set strategic goals and take responsibility for their implementation.
A co-investor is a person or institution that invests in a start-up or company alongside other investors. In such a co-investment, several investors participate in the same round of funding in order to provide capital and spread the investment risk across several parties.
Compliance refers to adherence to all applicable laws, regulatory requirements and binding internal policies within a company. In the context of start-ups, this means that founders must take legal and organisational requirements into account at an early stage and develop appropriate measures to ensure compliance.