Glossary

The churn rate measures the percentage of customers who stop using a product or service or cancel a subscription within a certain period of time.

The cash burn rate measures the speed at which a start-up or company uses up its available capital before it achieves a positive cash flow.

Cash flow refers to the flow of money into and out of the company over a certain period of time and provides an important insight into the liquidity and financial health of a company.

The capitalisation table, or cap table for short, is an essential document for startups that contains a detailed breakdown of shareholdings, including the shares held by founders, investors and other shareholders.

Customer acquisition costs (CAC) are the costs incurred by a company to acquire a new customer and include marketing and sales expenses.

A business plan is a detailed document that includes a company's goals, the strategies for achieving these goals, the market analysis, the financial forecast and the organisational structure.

The Business Model Canvas is a strategic management tool that is used to develop new or document existing business models and visualises nine key areas of a company such as value propositions, customer relationships, sales channels and revenue streams.

Business angels, also known as angel investors, are wealthy private individuals who invest capital, expertise and their network in young companies in order to promote their growth and development.

The burn rate is a key financial indicator in the startup world that shows how quickly a company uses up its available capital reserves before it is able to generate sustainable revenue.