SaaS & Startup Glossary

Annual recurring revenue (MRR × 12).

Average revenue generated per user.

First meaningful user action.

When user understands product value.

Rate of cash consumption.

Sales to businesses.

Sales to consumers.

Intermediate funding between rounds.

Total cost to acquire a new customer.

Customer cancellation rate per period.

Capitalization table showing ownership.

Rate of transformation from one stage to another.

Direct costs to deliver the service.

Debt converting to equity in future round.

Reduction in founders ownership percentage.

Thorough audit before investment.

Funding round at lower valuation.

Earnings before interest, taxes, depreciation and amortization.

Free model with paid options.

Market launch strategy.

Gross profit after variable costs.

Total value generated by a customer over their entire lifecycle.

Ratio of customer value vs acquisition cost.

Prospect interested in your solution.

Main investor leading the round.

Strategy of entry then expansion within customer.

Investor repayment priority.

Predictable monthly recurring revenue.

Minimum functional product version.

Lead qualified by marketing.

Primary metric guiding all decisions.

Revenue retention including expansion and churn.

Validated product-market alignment.

Time to recover customer CAC.

Very early-stage funding, often friends & family.

Product development plan over time.

Growth driven by the product itself.

Months of survival with current cash.

Predictable recurring income.

Percentage of customers retained over a period.

Software sold by subscription.

First institutional funding round.

First significant growth round.

Simplified convertible financing instrument.

Funding round to accelerate growth.

Average duration of sales process.

Growth driven by sales team.

Lead qualified by sales.

Three levels of addressable market sizing.

Document summarizing investment terms.

Profitability per unit (customer, transaction).

Estimated company value.