MVP & Startup Glossary
Essential terms every founder should know. Clear definitions without the jargon.
Product
Product development and strategy terms
MVP (Minimum Viable Product)
An MVP is the simplest version of a product that can be released to test a business idea with real users. It includes only core features needed to solve the main problem.
Product-Market Fit
Product-market fit means your product satisfies a strong market demand. Users love it, retention is high, and growth comes naturally through word of mouth.
SaaS (Software as a Service)
SaaS is a software delivery model where applications are hosted online and accessed through a web browser. Users pay a subscription fee rather than buying software outright.
Lean Startup
Lean Startup is a methodology for building businesses through validated learning. It emphasizes testing ideas quickly with real customers before investing heavily in development.
Pivot
A pivot is a fundamental change in business strategy based on learning. It means changing direction while keeping some elements of what you have learned.
Iteration
Iteration is the process of making repeated improvements to a product based on feedback. Each cycle brings the product closer to what customers need.
Feature Creep
Feature creep is when a product keeps adding features beyond the original scope. It leads to delays, bloated products, and losing focus on core value.
Development
Technical and engineering terms
Tech Stack
A tech stack is the combination of programming languages, frameworks, and tools used to build an application. It includes frontend, backend, database, and infrastructure choices.
API (Application Programming Interface)
An API is a set of rules that allows different software applications to communicate with each other. It defines how to request and exchange data between systems.
Database
A database is organized storage for application data. It allows creating, reading, updating, and deleting data efficiently. Common types include SQL (relational) and NoSQL databases.
Deployment
Deployment is the process of making an application available to users. It involves uploading code to servers, configuring infrastructure, and ensuring the application runs correctly.
Agile Development
Agile is a project management approach that emphasizes iterative development, collaboration, and responding to change. Work happens in short cycles called sprints.
Sprint
A sprint is a fixed time period (usually 1-4 weeks) in Agile development where a team works on a specific set of features or tasks.
Wireframe
A wireframe is a basic visual guide showing the structure and layout of a page or screen. It focuses on content placement and user flow without detailed design.
Prototype
A prototype is an interactive model of a product that demonstrates how it will work. It allows testing user experience before full development.
Business
Business metrics and operations
Bootstrapped
Bootstrapping means building a business without external funding. Founders use personal savings and revenue to grow, maintaining full ownership and control.
Runway
Runway is how long a startup can operate before running out of money. It is calculated by dividing current cash by monthly burn rate.
Burn Rate
Burn rate is how much money a startup spends per month beyond what it earns. It measures the rate at which the company uses up cash reserves.
CAC (Customer Acquisition Cost)
CAC is the average cost to acquire a new customer. It includes all marketing and sales expenses divided by the number of new customers acquired.
LTV (Lifetime Value)
LTV is the total revenue expected from a customer over their entire relationship with your business. It helps determine how much you can spend to acquire customers.
Churn Rate
Churn rate is the percentage of customers who stop using a product during a given time period. Lower churn means better retention and higher lifetime value.
MRR & ARR
MRR (Monthly Recurring Revenue) and ARR (Annual Recurring Revenue) measure predictable subscription revenue. They are the primary metrics for subscription businesses.
Funding
Investment and fundraising terms
Pre-Seed Funding
Pre-seed is the earliest stage of startup funding. It typically comes from founders, friends, family, or early-stage angels to build a prototype or MVP.
Seed Funding
Seed funding is early-stage investment to help startups grow after initial validation. It typically ranges from 500k to 3 million to scale initial traction.