In the startup world a separate language is spoken. What does “Fly”, “Exit” or “Business Angel” actually mean?
As an outsider you only understand station, if you talk to founders of startups. It seems they are speaking a foreign language. In fact, most terms are English – but have their own meaning in the startup world. An overview:
Pitch
A pitch is a presentation of your own idea to investors. In a few minutes startups try to convince them of the project in order to get their money. The idea and a business plan are presented – in other words how the idea will bring money to the coffers.
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Elevator pitch
The same as a pitch, but in short: the presentation should be so short that it can be explained to a person during a lift ride. Used more in unofficial meetings.
Business Angel
These are people who invest in startups, ie investors. It’s not just about money, but also. Most business angels also support the startups with contacts to important people, know-how or through participation in a board of directors. As a rule, business angels are former company founders who have generated wealth through sale or return.
USP
The word is the abbreviation of “unique selling point” or “unique selling proposition” and can be translated into a unique selling proposition. A startup has to differentiate itself from the competition by a unique idea – this is what makes it interesting for investors.
Fly
Make a business fly, make a profit.
Exit
Some startups are founded with the aim of making an exit as soon as possible. This means that they want to grow fast and sell their company shares with as much profit as possible – that is, get rich.
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Scaling
The business model of a startup can often be scaled. For example, a startup is founded in Switzerland that is geared to the Swiss chocolate market. If the startup is successful in Switzerland, the business model can be applied to new countries and new markets, ie scaled up. Startups are often founded with the intention that their business model can be transferred to other markets.
Hidden Champion
A company that is quite unknown – but still a leader in a certain industry.
Pivot
If your own strategy needs to be changed, it’s called the pivot. This can be an Idea Pivot that creates a new product; a market pivot where the same product is sold to other users; or a business model pivot that modifies the business model.
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Break-Even
The time when a startup writes in the black.