Glossary

Loss aversion describes the phenomenon that losses have a stronger emotional impact than equally high gains. This cognitive bias leads people to act in a risk-averse manner and avoid potentially favourable decisions just to prevent possible losses. Especially in investment decisions, loss aversion can lead to overly cautious behaviour or holding on to loss-making investments. Understanding this effect is crucial to making rational and successful long-term decisions.

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.

The AI Act is a draft law of the European Union that was first presented in 2021 and aims to regulate the use of artificial intelligence (AI) within the EU. The aim is to create a legally secure, ethical and transparent environment for the development and use of AI technologies.

A/B testing is a method in the field of marketing, product & web development and data analysis in which two variants (A and B) of an element - e.g. a website, an email, an interface or an advert - are compared with each other. The aim is to use real user data to find out which variant delivers better results. The target group is randomly divided into two groups, each of which sees one of the variants. Key figures such as click rate, conversion rate or dwell time are then analysed in order to make data-based decisions for optimisation.

Recurring revenue describes regularly recurring income that provides a stable source of revenue for companies through subscriptions or contracts.

The Rule of Forty is an important metric for SaaS companies that combines revenue growth and profitability to assess the health of a business.

Family offices help wealthy families with asset management and offer advisory services. They are also valuable investors for start-ups, as they invest for the long term and provide extensive networks and expertise.

The full-time equivalent (FTE) is a key figure that is used to compare the work performance of part-time and full-time employees.

The gross margin is a business ratio that describes the difference between sales and the direct costs of goods or services sold.