Gross profit is the difference between a company's sales revenue and its direct production costs.
Glossary
What is non-recurring revenue (NRR)?
Non-recurring revenue (NRR) refers to revenue that is non-recurring and does not occur regularly or repeatedly.
What is a negative liquidation preference?
The negative liquidation preference is an alternative investment model in start-up financing that represents a special arrangement in the event of liquidation. Here, investors do not receive preferential access to the assets, but the founders are paid out first.
What are hurdle shares and how are they used?
Hurdle shares are a special type of...
What is ARPA (Average Revenue per Account) and why is this metric important?
ARPA (Average Revenue per Account) measures the average revenue per customer and helps companies to analyse monetisation and customer loyalty.
What is an equity story and why is it important to investors?
Entrepreneurial spirit refers to the initiative and determination to start new ventures and turn innovative ideas into successful business models. This characteristic is essential for start-ups and entrepreneurs who want to survive in dynamic markets. The term emphasises the importance of creativity, willingness to take risks and perseverance in the entrepreneurial process.
What does ‘entrepreneurial spirit’ mean, and why is it important for entrepreneurship?
Entrepreneurial spirit refers to the initiative and determination to start new ventures and turn innovative ideas into successful business models. This characteristic is essential for start-ups and entrepreneurs who want to survive in dynamic markets. The term emphasises the importance of creativity, willingness to take risks and perseverance in the entrepreneurial process.
What is a Zebra company, and how does it combine profitability with social impact?
Zebra companies are start-ups that are characterised by their striving for social responsibility, environmental awareness and sustainable business practices, without losing sight of profitability.
What is a convertible loan, and how does the conversion into company shares work?
Convertible loans are a form of financing that offers investors the opportunity to convert the borrowed capital into equity shares in the company under fixed conditions, typically during a future financing round.