In the dynamic world of entrepreneurship, mastering the specific vocabulary of the business and innovation ecosystem has become crucial for new entrepreneurs. South Summit, the main meeting point for the entrepreneurial and innovation ecosystem, has compiled an Innovation Dictionary with 23 key words that every novice entrepreneur should know to take their first steps successfully in this environment.
Key Terms for Business Success
A for Advisor
An experienced professional in a specific sector who provides advice and professional insight to a startup or entrepreneur, as well as valuable connections with other entrepreneurs and investors.
B for Bootstrapping
The process by which a startup is created and developed without investments or external capital, using only the resources of the founders.
C for Venture Capital
Type of investment used by funds specialized in high-risk, high-return investments, generally focused on early-stage startups with potential for rapid growth.
D for Deal Flow
Refers to the flow of deals, projects, startups, and investment opportunities that reach different funds and investors through various channels.
E for Elevator Pitch
A brief presentation, 30 seconds to 2 minutes, in which a startup spokesperson must outline the key points of the project to capture the attention of potential investors, partners, or clients.
Funding and Growth
F for FFF (Family, Friends, and Fools)
Type of initial funding from family, friends, and acquaintances of the startup founders, representing 19% of new entrepreneurs’ funding in Spain according to the South Summit Entrepreneurship Map 2023.
G for Growth Hacking
A process applied by a startup using creative and innovative techniques and strategies, generally focused on technology and marketing, to accelerate its growth and attract users or clients with minimal expense.
H for Hub
A space that brings together entrepreneurs, startups, investors, and mentors to foster collaboration, knowledge exchange, and business growth.
I for IPO (Initial Public Offering)
The process by which a private company offers its shares for the first time to the public on the stock market.
J for J-curve
A graphical representation showing the temporal evolution of the net capital flow of a startup over time.
Metrics and Strategies
K for KPI (Key Performance Indicator)
Key performance indicators used to measure a startup’s performance in relation to its goals.
L for Lead Investor
The main investor leading a funding round in a startup, providing a larger amount of capital and generating credibility for the project.
M for Mentoring
The process by which a mentor advises and guides an entrepreneur or group of entrepreneurs through their professional experiences or practical advice.
N for Networking
Sessions at events and meetings where entrepreneurs can engage in conversations with investors and other founders to initiate and maintain mutually beneficial professional relationships.
O for Outsourcing
The process of outsourcing certain activities of a startup’s business to specialized third parties.
Adaptation and Growth
P for Pivot
A significant change in a startup’s strategy or business model to adapt to new market circumstances or seize a new opportunity.
R for Investment Round
The process by which a company, generally a startup, obtains funding for its project through the participation of a series of investors.
S for Scale-up
A company that has surpassed the initial startup stage and has demonstrated significant and sustainable growth in terms of revenue, customers, employees, and reach.
T for Time to Market
The time elapsed from the conception of an idea to its market launch, a crucial indicator for measuring a startup’s efficiency and agility.
U for Unicorn
A startup that has reached a valuation of at least one billion dollars without going public.
V for Valuation
The financial evaluation of a startup at a given time, based on factors such as growth potential, product traction, and projected revenues.
Additional Concepts
Y for Yak Shaving
An expression used when someone performs seemingly irrelevant or secondary tasks that lead to a succession of other tasks that divert the entrepreneur from their main goal.
Z for Zombie Startup
A startup that, although still operating, lacks significant growth or long-term viability, remaining in a perpetual development phase without achieving its business or market objectives.
This dictionary, developed by South Summit, serves as a fundamental tool for new entrepreneurs to navigate with confidence in the complex current business ecosystem, facilitating their understanding and participation in the world of innovation and entrepreneurship.