Startup Dictionary: A Friendly Guide to the Buzzwords of Building a Startup
If you're new to the startup world, it can feel like learning a new language—full of acronyms, fancy words, and Silicon Valley slang. Whether you're pitching investors or just want to understand what your co-founder means by “pivot,” this mini-dictionary is here to help.
From Research to Reality
Over the past year, I’ve explored dozens and dozens of pitch decks, founder stories, and startup journey across Central and Eastern Europe. As a researcher and writer working at the intersection of business, strategy, and emerging tech, I’ve often found myself translating “startup jargon” into something more human, clear, and useful.
Whether I was analyzing a new AI report, profiling investors, or supporting founders with strategy, one thing became clear: the startup world loves its jargon—yet early-stage entrepreneurs and emerging talent often feel lost in translation.
So, I created this light and friendly dictionary—a toolbox of common (and confusing) startup terms, explained in plain English. The goal? To help you feel more confident in your next meeting, pitch, or scroll through TechCrunch headlines.
I’ve pulled definitions from trusted sources like Y Combinator, Sequoia Capital, and TechCrunch, and and translated them into everyday language.
Let’s dive in.
Startup
Y Combinator definition: “A startup is a company designed to grow fast.”
Plain English: It’s not just any new business—it’s one built to scale quickly, often using technology.
MVP (Minimum Viable Product)
Coined by Eric Ries in The Lean Startup
Plain English: The most basic version of your product that still solves the problem. Think: ugly but useful. You're testing if anyone even wants it before spending time and money making it perfect.
Pivot
TechCrunch glossary: “A pivot is a significant shift in a startup’s business model.”
Plain English: You tried one idea, it didn’t work, so you changed directions. It’s not failure—it’s feedback in disguise.
Runway
Sequoia guide: "How many months a startup can keep operating before it runs out of money."
Plain English: Think of it like fuel in your startup rocket. If you have 6 months of runway, you’ve got half a year before your bank account hits zero.
Seed Funding
Y Combinator: “The first money raised to start building a company.”
Plain English: Early-stage cash, usually from angel investors or funds like YC, to help turn your idea into a real business. It’s like watering a seed before it becomes a tree.
Series A / B / C…
Explained by Crunchbase: Each “series” is a new round of funding as your company grows.
Plain English:
- Series A = We found a business model.
- Series B = We’re scaling.
- Series C+ = We're a big deal now, maybe heading toward IPO or acquisition.
Cap Table (Capitalization Table)
Carta explains: A record of who owns what in your company.
Plain English: Like a pie chart of your startup, showing how the slices are split between founders, employees, and investors.
Unicorn
CB Insights: A startup valued at over $1 billion.
Plain English: A rare beast in the business world. Most won’t get there—and that’s okay. Focus on building something real, not just chasing shiny horns.
Product-Market Fit (PMF)
Marc Andreessen: “Being in a good market with a product that can satisfy that market.”
Plain English: People want what you’re building—and they’re using (and maybe even paying for) it.
Burn Rate
Y Combinator: “The amount of money you’re spending every month.”
Plain English: How fast you're burning through your runway. Lower is better—unless you're aggressively growing with a good reason.
Pitch Deck
Sequoia’s 10-slide template is famous for guiding founders.
Plain English: A short presentation (usually 10-15 slides) that tells your startup story to investors. Think of it as your Tinder profile for fundraising—clear, compelling, and honest.
Accelerator
Y Combinator: A program that helps startups with money, mentorship, and a network.
Plain English: Startup bootcamp. You get advice, connections, and sometimes a small investment in exchange for equity. Examples: Y Combinator, Techstars, Seedcamp.
Exit
From Harvard Business Review: “An exit strategy is a way to cash out.”
Plain English: How founders and investors make money—usually by selling the company (acquisition) or going public (IPO). Sometimes, it’s just moving on.
Traction
Techstars: “Proof that customers want your product.”
Plain English: Are people using it? Buying it? Talking about it? Any real-world sign your startup is working.
Bootstrapping
Investopedia: “Building a business from personal savings or revenue instead of outside funding.”
Plain English: DIY startup life. No investors, just hustle.
Valuation
Y Combinator: “The price investors think your company is worth.”
Plain English: A made-up number based on hope, hype, and sometimes data. Don’t let it define you—but know it affects how much of your company you give away.
Moat
Warren Buffett popularized it: A moat protects a business from competitors.
Plain English: What makes your startup hard to copy—tech, brand, users, speed, or something unique.
Startups are hard. But understanding the lingo makes the ride a little smoother. And as Paul Graham of Y Combinator once said: “The way to get startup ideas is not to try to think of startup ideas. It's to look for problems.” That’s where all these words start to make sense.”