18 Investment Jargons Every Entrepreneur Must Understand

18 Investment Jargons Every Entrepreneur Must Understand
1. 𝗟𝗧𝗩 (𝗟𝗶𝗳𝗲𝘁𝗶𝗺𝗲 𝗩𝗮𝗹𝘂𝗲)→ Predict customer's long-term value to estimate revenue.
2. 𝗔𝗥𝗥/𝗠𝗥𝗥 (𝗔𝗻𝗻𝘂𝗮𝗹/𝗠𝗼𝗻𝘁𝗵𝗹𝘆 𝗥𝗲𝗰𝘂𝗿𝗿𝗶𝗻𝗴 𝗥𝗲𝘃𝗲𝗻𝘂𝗲)→ Measure predictable income through subscriptions annually/monthly.
3. 𝗠𝗥𝗥 𝗖𝗵𝘂𝗿𝗻→ Monitor subscription revenue loss rate regularly.
4. 𝗔𝗻𝗻𝘂𝗮𝗹 𝗥𝘂𝗻 𝗥𝗮𝘁𝗲→ Estimate yearly revenue with current figures.
5. 𝗗𝗲-𝗿𝗶𝘀𝗸→ Address uncertainties by solidifying key relationships.
6. 𝗗𝗶𝗹𝘂𝘁𝗶𝗼𝗻→ Understand equity ownership reduction post new issues.
7. 𝗘𝗕𝗜𝗧𝗗𝗔→ Assess operational performance excluding certain expenses.
8. 𝟰𝟬% 𝗥𝘂𝗹𝗲→ Balance growth and profitability in SaaS.
9. 𝗖𝗔𝗖 (𝗖𝘂𝘀𝘁𝗼𝗺𝗲𝗿 𝗔𝗰𝗾𝘂𝗶𝘀𝗶𝘁𝗶𝗼𝗻 𝗖𝗼𝘀𝘁)→ Track cost of acquiring a new customer.
10. 𝗦𝗼𝗳𝘁 𝗖𝗼𝗺𝗺𝗶𝘁𝗺𝗲𝗻𝘁 𝘃𝘀. 𝗛𝗮𝗿𝗱 𝗖𝗼𝗺𝗺𝗶𝘁𝗺𝗲𝗻𝘁→ Differentiate non-binding interest from binding investment promises.
11. 𝗟𝗣 & 𝗚𝗣 (𝗟𝗶𝗺𝗶𝘁𝗲𝗱/𝗚𝗲𝗻𝗲𝗿𝗮𝗹 𝗣𝗮𝗿𝘁𝗻𝗲𝗿)→ Understand investor roles in venture capital funds.
12. 𝗢𝗽𝘁𝗶𝗼𝗻 𝗣𝗼𝗼𝗹→ Reserve equity for future employee incentives.
13. 𝗗𝗲𝗮𝗱 𝗘𝗾𝘂𝗶𝘁𝘆→ Identify inactive shares that don't contribute to growth.
14. 𝗖𝗮𝗽𝗶𝘁𝗮𝗹 𝗦𝘁𝗮𝗰𝗸→ Acknowledge capital layers funding your company.
15. 𝗖𝗮𝗽𝗶𝘁𝗮𝗹𝗶𝘇𝗮𝘁𝗶𝗼𝗻 𝗧𝗮𝗯𝗹𝗲→ Maintain ownership stakes record in your business.
16. 𝗧𝗮𝗽𝗽𝗲𝗱 𝗢𝘂𝘁→ Know when an investor can't provide more funding.
17. 𝗗𝗿𝘆 𝗣𝗼𝘄𝗱𝗲𝗿→ Manage cash reserves for future investments.
18. 𝗣𝗿𝗼-𝗿𝗮𝘁𝗮 𝗥𝗶𝗴𝗵𝘁𝘀→ Helps investors maintain ownership stake during funding.