The A – Z startup terms you need to know: E – R
Startups have their own magic and words, the Startup lingo, and entering this thriving startup ecosystem can be overwhelming, especially when there’s so many terms to wrap your head around. If you can gain an understanding of the “lingo”, you’ll find it easier to meet and network with other founders, and speak to potential investors or sponsors!
In this blog, we are covering the middle letters of the alphabet, so read on for E – R of startup terms you need to know.
Going public refers to a company’s IPO (Initial Public Offering). This is another way to raise funding, where shares of your company are available to purchase by the public.
GTM (GO TO MARKET STRATEGY):
A go-to-market strategy is the way in which a company brings a product to market. It includes how a company will reach target customers and achieve competitive advantage.
An online marketplace is a website or app that facilitates shopping from many different sources. The operator of the marketplace does not own any inventory, their business is to present other people’s inventory to a user and facilitate a transaction. Uber, Airbnb, ebay, Etsy are all marketplaces.
POINT OF PARITY:
The aspects of a product or service offering that are largely similar to the offerings of like competitors.
POINTS OF DIFFERENTIATION:
The aspects of a product or service offering that are relatively distinct to the offerings of like competitors.
A financial projection is a forecast of future revenues and expenses. This can be for varying time periods including month-by-month for 1 year, or more strategic 3-5 year projections.
A runway is how long your company can survive if your income and expenses stay constant. When companies raise money, they are trying to increase their runway. (For example, if a company spends $100,000/month and has $400,000 in the bank, they have a runway of 4 months. If they were to raise an additional $1,000,000, they would have 14 months of runway.)
If you’re interested in learning more about Startup Gippsland and how we can help you build and scale your business, be sure to take a look at our website.