Inc42 Glossary

Dive into Inc42's comprehensive glossary of the Indian tech and startup economy. Your one-stop resource for all key terms, jargon, and acronyms. Whether an entrepreneur or investor, navigate India's vibrant tech landscape with confidence. Decoding Indian tech terminology is now easier than ever with Inc42.

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Accelerator

Accelerators provide mentorship, resources and financial support to startups.

Account Servicing Payment Service Provider

It is a financial entity specialising in providing payment services to businesses and individuals.

Accredited Investors

An accredited investor is an individual or entity that satisfies specific financial criteria established by securities regulations

Acquihire

Acquihire means a company is acquired with the aim of acquiring its skilled personnel rather than its products or IP.

Add To Cart

‘Add to cart’ signifies the action of adding an item to the virtual purchasing order.

Advanced Encryption Standard

AES is a widely adopted and symmetric encryption algorithm standard used while securing data

Affiliate Marketing

A form of performance-based marketing where individuals or businesses promote the products or services of companies.

AI Alignment

AI alignment refers to the field of research concerned with ensuring that AI systems behave per human intentions & values

Alpha & Beta Release

Alpha release is the initial software version for limited testing, while Beta is for broader testing and feedback before the final release.

Alternative Investment Fund

Alternative Investment Fund is a privately pooled investment vehicle that collects funds from investors in accordance with defined investment policy.

Angel investors

HNIs who provide initial capital to startups

Angel Network

An angel network comprises wealthy investors who pool their resources to invest in a business.

Annual Contract Value

ACV measures the average annualised revenue per subscription contract minus one-time fees.

Annual General Meeting

AGM is a yearly formal gathering held by organisations with shareholders to allow members to communicate

Annual Recurring Revenue

ARR is a metric used to measure the total revenue that a SaaS company expects to generate from its subscriptions.

Anti-Dilution Protection

Anti-dilution protection in VC agreements shields earlier investors by preventing ownership dilution from new shares issued at lower prices.

API

APIs can be used to exchange critical data like order management, pricing information and customer data with other apps.

API Banking

API Banking connects banking systems with external applications for seamless financial transactions via standardised interfaces.

Artificial General Intelligence

Artificial General Intelligence are hypothetical machines with human-like learning and thinking abilities to perform any intellectual task.

Artificial Intelligence

AI is the simulation of human intelligence in machines to perform tasks that require human cognitive abilities.

Artificial Neural Networks

ANNs mimic the human brain, processing data through interconnected neurons for adaptive learning in machine learning.

Artificial Superintelligence

ASI is a theoretical concept imagining AI surpassing human intellect, awaiting realisation with AGI as a precursor.

Asset-Heavy Marketplace

Asset-heavy is a broad term used to describe the business model, which typically needs a lot of business assets to generate revenue

Attribution Window

Attribution window is an ad publisher’s time limit to claim credit for user clicks/impressions for app installs/purchases.

Autoregressive Model

An autoregressive model predicts future sequence values based on its past values using statistical techniques.

Average Order Value

A metric that quantifies the average monetary value of each customer order.

Average Revenue Per Account

ARPA measures SaaS subscription income over set periods, typically monthly or annually.

B2B Marketplace

A B2B marketplace is an ecommerce platform that facilitates business-to-business transaction. It acts as a digital intermediary

B2B Model

A business that sells its products or services to other businesses instead of an individual consumer.

B2C Marketplace

A B2C marketplace is an online platform that connects businesses directly with individual consumers (buyers) to sell products and services

Balance Sheet

A balance sheet shows a company’s financial health at a specific point in time, its assets, liabilities and shareholders’ equity.

Bandgap

Bandgap refers to a region of an element’s crystal’s electronic band structure through which electrons can’t pass.

Banking-as-a-Service

BaaS is a financial technology that allows non-banking financial companies to offer banking services to their customers

Bayesian Networks

Bayesian networks are graphical models that help understand and reason about complex systems with uncertainty using directed graphs.

Beta Testing

Beta testing lets potential users trial a new product pre-launch, vital for startups aiming a successful market entry.

Big Data

Big data refers to extremely large and diverse collections of data. They are so massive that data management systems can’t handle them.

Blitzscaling

Blitzscaling is a fast-growth strategy used by startups to secure a dominant market position, prioritising speed over profitability

Board Of Directors

A board of directors oversees company management, strategic decision-making and acts in the best interests of shareholders.

Bootstrapping

Bootstrapping is an approach where entrepreneurs use their own resources and rely on revenue generated by the business to grow.

Bounce Rate

Bounce rate means people come to a website but leave right away without doing much.

Brand Awareness

Brand awareness means how customers perceive, recall and recognise a brand.

Brand Equity

A special or premium value attached to a brand and its products.

Bridge Round

A bridge round is an interim funding solution for startups seeking a financial lifeline between major funding rounds.

Bubble

A bubble is a situation when asset prices soar beyond real value, often followed by a crash and financial losses.

Bulk Shipping

Bulk shipping refers to transporting large quantities of goods, typically shipped loose and loaded directly into a carrier vessel rather than packing in individual containers

Burn Rate

Burn rate measures how quickly a business is “burning” through its available capital to cover operational expenses.

Burn-In

Burn-in refers to a testing process where components are deliberately stressed with extreme conditions like high temperatures and voltages

Business Model Canvas

A business model canvas is a visual tool for analysing how an organization creates, delivers and captures value in its overall business model.

Business Plan

Business plan is a detailed document that outlines the goals, strategies, and operations of a business.

Buyout

A buyout involves acquiring a company or significant stake to gain control for strategic, managerial or financial purposes.

CAC Payback Period

CAC payback period measures how quickly a company recovers its customer acquisition costs to assess acquisition success

Cap Table

The capitalisation table or the “cap table,” refers to a table that provides a detailed overview of a company’s ownership structure

Capacitor

A capacitor is an electronic component that stores energy as an electrostatic field. It consists of two parallel conductors

Capital Call

In private equity and VC, a capital call prompts investors to commit funds, allowing fund managers access to specific needs.

Capital Stack

The capital stack outlines the hierarchy of diverse funding used by a project or business, shaping its financial structure.

Capped Notes

Capped notes set a maximum conversion price for investors in startups, ensuring they won’t pay more even if the startup’s value rises.

Carbon Nanotubes

A carbon nanotube (CNT) is a molecule made of carbon atoms arranged in a cylindrical nanostructure.

Carried Interest

Carried interest is a profit share accruing to investment fund managers, incentivising them to maximise returns for investors in the fund.

Cash Flow

Cash Flow means the circulation of money in and out of a business.

Cash On Delivery

COD allows customers to pay for their purchases only when they physically receive the order.

Category Killer

A ‘category killer’ is a large retail store that specialises in a particular product and dominates the competition in that category

Chatbot

Chatbot is a computer programme that simulates conversation with humans, commonly used to provide customer service or answer FAQs.

Chemical Mechanical Polishing

Chemical mechanical polishing (CMP) is a technique used to smoothen and flatten surfaces at the nanoscale level

Chip

A chip – a microchip or an integrated circuit (IC) – is a tiny electronic circuit etched on a wafer of semiconductor material, typically silicon

Chip Architecture

In semiconductors, architecture refers to the instruction set architecture, a detailed set of rules and specifications governing how a chip processes data and executes instructions

Churn Rate

A critical metric that evaluates how well a brand retains its customers.

Clawback

Clawback is a legal provision allowing a party to take back previously distributed funds, benefits, or assets in specific circumstances.

Click-Through Rate

Click-Through Rate (CTR) gauges the success and failure of a brand’s advertisement to the target audience

Cliff Vesting

An employee benefits structure that is granted after a specified service period, encouraging retention and commitment.

Cockroach Startup

A cockroach startup is resilient and thrives in tough market conditions by prioritising scalability over resource dependency.

COD Remittance

COD remittance is transferring funds from a customer to a seller after a cash-on-delivery order has been successfully delivered and paid for

Competitive Analysis

Competitive analysis studies competitors’ strategies to stay ahead, involving research on sales, products, SWOT, and marketing.

Composite AI

Composite AI is an approach to AI that combines multiple AI techniques and technologies to create a more comprehensive and capable system.

Compound Semiconductors

A compound semiconductor is a material with electrical conductivity that falls between conductors and insulators

Conditional Generation

Conditional generation in AI and ML is the process of creating outputs based on specific conditions or constraints once inputs are given.

Content Marketing

Content marketing is the process of sharing valuable content on platforms to engage the target audience.

Contraction MRR

Contraction MRR helps SaaS companies pinpoint revenue losses due to subscription downgrades and cancellations.

Conversational AI

Conversational AI is a branch of AI that allows machines to simulate conversation with humans.

Conversion Rate

A conversion rate measures successful actions of a user against total visitors

Conversion Rights

In an investor context, conversion rights grant preferred shareholders the option to convert their shares into common shares

Convertible Notes

Convertible notes are a type of debt instrument commonly used by startups to raise capital during their early stages.

Convolutional Neural Network

CNN is a deep learning algorithm tailored for analysing visual data such as images and videos.

Corporate Venture Capital

A CVC (Corporate Venture Capital) fund refers to an investment vehicle formed by a corporation to invest in startups or other funds.

Cost Of Goods Sold

Cost of goods sold is the expense directly linked to producing or buying goods for resale, deducted from revenue to find gross profit.

Cost Per Acquisition

Cost Per Acquisition measures the marketing efforts of a business by showing how much money is spent on average for acquiring a single customer.

Coworking spaces

Coworking spaces are communal work environments where professionals from different backgrounds share a common workspace.

Cross Docking

Cross-docking is a logistics strategy that minimises storage time by directly transferring goods from inbound deliveries to outbound shipments

Cross-Border Bill Payments

Cross-border bill payments settle bills for recipients in different countries by converting currencies from the payer’s to the recipient’s.

Cross-Border Shipping

Cross-border shipping is the process of transporting goods from a seller in one country to a buyer in another country

Cross-Selling

Cross-selling is a sales strategy where companies offer additional products/services to existing customers to increase revenue.

Crowdfunding

Crowdfunding is a funding alternative for an idea, project, or business to rais funds from a large public group.

Customer Acquisition Cost

CAC are the expenses that businesses incur in deploying customer acquisition strategies and the processes.

Customer Lifetime Value

CLTV means the total expected sales a customer will generate throughout the business relationship with a company.

Customer Lifetime Value (CLTV)

CLTV is the average amount a customer will spend during their lifetime on a brand’s products/services

Customer Onboarding In SaaS

Customer onboarding in SaaS is all about showing customer the ropes, providing them the tools they need and ensuring CX.

Customer Retention

Customer retention refers to a company’s ability to retain its existing consumers over time.

Customer Segmentation

Customer segmentation categorises SaaS company’s customers based on parameters like tech, products and business goals.

Czochralski Growth

Czochralski growth, also called the Czochralski method or technique, is a method for growing high-quality single crystals of various materials

D2C

D2C brands leverage their own website to create strong consumer relations, control CX and ensure lasting customer retention.

Data Intelligence

Data intelligence in logistics refers to applying tools and technologies to collect, analyse, and interpret vast amounts of data generated throughout the supply chain

Deal flow

Deal flow in sales is the influx of potential investment opportunities evaluated by venture capitalists or investment firms.

Decacorn

A term used to describe a startup that has been valued at $10 Bn or more

Decentralised Finance

Decentralised finance is blockchain-based finance that uses smart contracts, cutting out middlemen for efficient financial services.

Deep Belief Network

DBN is an advanced neural network adept at extracting complex patterns from large datasets in unsupervised learning.

Deep Learning

Deep learning is a subset of ML employing artificial neural networks with multiple layers to iteratively learn features from raw input data.

Demo Day

Demo Day is an event for startups to pitch ideas and products to investors, seeking investment and partnerships.

Design In

Design In is an approach in semiconductor manufacturing that breaks the silos between manufacturers, marketers, and end users

Digital Financial Inclusion

Digital financial inclusion ensures equitable access to financial services through tech to empower underserved communities economically.

Diode

A diode is a semiconductor device that exhibits a nonlinear current-voltage relationship. it allows current to flow easily in one direction

Disruptive Technology

Innovations that fundamentally alter industries and markets by displacing existing products.

Distributed Ledger

Distributed Ledger Technology underpins a specific type of decentralised database. DLT rely on network of computers called nodes to function

Distributed To Paid-In Capital

Distributed to Paid-In Capital (DPI) measures cash distributions against the initial investment in private equity or venture capital.

Distribution Centre

A distribution centre, sometimes called a fulfilment centre, is a large warehouse that is a key part of the supply chain

Doping

Doping in semiconductors is adding a small amount of impurities into a very pure semiconductor material

Down Round

A down round occurs when a startup raises new funding at a valuation lower than its previous round

Dropshipping

A form of retail wherein the seller accepts customer orders without keeping stock on hand.

Dry Powder

Dry powder in private equity is the capital within a firm’s raised funds, kept available for future investment opportunities.

Due Diligence

Due Diligence is the assessment of a company’s financial, economic, legal and fiscal aspects before carrying out a transaction.

E-Money

E-money is a digital form of currency used for online transactions, representing monetary value in a digital format.

E-Wallet

E-wallets are digital versions of traditional wallets that store payment information for online transactions.

Ecommerce

Ecommerce is the buying and selling of goods over the internet and involves browsing, choosing products to making payments.

Electroluminescence

Electroluminescence is the emission of light by a material when subjected to an electric current or a strong electric field

Electron Beam Lithography

Electron beam lithography is a technique for creating high-resolution patterns on a semiconductor substrate by directing a beam of electrons

Elevator Pitch

A concise overview of a startup, product or idea that can be delivered in under one minute.

Eleven Nines Semiconductors

In the world of semiconductors, ‘Eleven Nines’ refers to a semiconductor with near-perfect levels of purity, specifically 99.999999999%

Email Marketing

The practice of sending targeted emails to a group of recipients to promote products, services, events etc.

Embedded Lending

Embedded lending is the seamless integration of financial services in non-financial platforms allowing users to access these services.

Emotion AI

Emotion AI is a developing field of AI that deals with machines’ ability to recognise and understand human emotions

Encoder-Decoder Architecture

An encoder-decoder architecture in machine learning efficiently translates one sequence data form to another.

Enterprise Inventory Management

Enterprise inventory management is process of overseeing a company’s inventory levels. This includes ordering, storing, and selling product.

Enterprise Resource Planning

Enterprise Resource Planning (ERP) is a software system that helps businesses manage and integrate all their core activities

Enterprise SaaS Sales

Enterprise SaaS sales target big corporates with complex needs, multiple decision-makers and extended sales cycles while offering high-value solutions.

Epitaxial Growth

Epitaxial growth refers to depositing a thin, crystal layer on a crystal substrate, with a specific orientation.

Equity Dilution

Equity dilution occurs when a shareholder’s ownership in a company diminishes due to the issuance of shares.

Equity Funding

In equity funding, a company sells its shares/stake in exchange for capital investment from investors.

ESOP

ESOP is a form of employee benefit plan that incentivises employees with company stocks.

Etching

In semiconductor manufacturing, etching is a crucial process that sculpts the intricate circuits on a silicon wafer

Ethical AI

Ethical AI involves creating and deploying AI systems while prioritising ethical principles in their development and use.

Exit Strategy

An exit strategy is a key plan for divesting from a company, with specific goals and actions for ownership or asset transfer.

Expansion MRR

A metric used to measure the additional MRR generated by existing customers in a given month

Explainable AI

Explainable AI (XAI) is a field of AI that focusses on developing techniques to make AI models more understandable to humans.

Express Shipping

Express shipping is a premium service by courier companies that prioritises speed over cost. It is the fastest way to get a package delivered

Extreme Ultraviolet Lithography

Extreme ultraviolet (EUV) lithography is a cutting-edge technique to manufacture modern computer chips

Fab

In the world of electronics, a fab refers to a fabrication facility. This is a specialised factory that manufactures semiconductors

Fair Market Value

Fair Market Value is the unbiased price at which assets are exchanged between informed, unpressured buyers and sellers in an open market.

Family Office

A Family office is an exclusive advisory firm specialising in the management of the substantial wealth of affluent families.

Fintech Sandbox

A fintech sandbox allows fintech firms to test innovative financial products or services under relaxed regulatory conditions.

First In First Out

FIFO stands for ‘First In, First Out’. It is an accounting method used to track the cost of goods sold (COGS)

Flat rounds

Flat rounds are when a company gets funding at a valuation almost identical to its prior round, maintaining stable equity.

Fleet Management

Fleet management is the strategic process of overseeing a company’s fleet of vehicles to optimise efficiency, reduce costs, and ensure compliance with regulations

Follow-On Investment

A follow-on investment, in the context of venture capital, is an additional investment made in a startup by an existing investor.

Founder Vesting

Founder vesting means that a founder may keep a certain percentage or all of their stocks after leaving the company post specified period

Foundry

A foundry is a factory that manufactures semiconductor devices like integrated circuits (ICs) for other companies

Freemium

The freemium model offers free and premium versions to drive user acquisition for revenue optimisation.

Fulfilment Centre

A strategically located warehouse designed to manage and process the inventory of ecommerce businesses.

Full Ratchet

Full ratchet guards startup investors via anti-dilution in contracts, mainly with convertible preferred stock.

Full Truckload Shipping

Full Truckload (FTL) is a shipping method where an entire truck or a trailer is dedicated to a single shipment

Fund Manager

A fund manager, also known as a portfolio manager, is accountable for making investment choices and overseeing assets in an investment fund.

Fuzzy Logic

Fuzzy logic is a thinking process that goes beyond traditional “true or false” logic in processing information.

Gallium Arsenide

Gallium arsenide (GaAs) is a versatile material with several properties that make it valuable in electronics

GenAI

Generative AI (GenAI) is subfield of Artificial Intelligence for creating content based on a given prompt for text, image, audio or video.

General Partner

An individual or a group of individuals who manage a VC fund.

Generative Adversarial Network

Generative Adversarial Network is an ML model that uses two competing neural networks to generate indistinguishable data.

Generative Model

A generative model is an AI model that learns data patterns to generate new data similar to its training data.

GPT

The generative pre-trained transformer is an LLM that is used in generative artificial intelligence (GenAI).

Graphene

Graphene is a wonder material consisting of a single atomic layer of carbon atoms packed in a honeycomb crystal lattice

Gross Margin

Gross margin is the percentage of revenue a company retains after subtracting the cost of goods sold.

Gross MRR Churn Rate

Gross MRR churn rate is used by SaaS companies to estimate revenue losses from service downgrades.

Growth Hacking

Growth hacking is a specialised field of marketing that prioritises rapid growth with minimal spending, often used by startups.

Growth Stage Funding

A startup seeks growth stage funding typically after it has achieved its PMF.

GST

GST is an indirect tax for the whole country. It came into effect on July 1, 2017, making India a unified common market.

Hall Effect

The hall effect is a phenomenon when voltage is generated across a current-carrying conductor in a magnetic field

Hierarchical Models

In machine learning, a hierarchical model is an approach that organises data and learning processes into layered structures.

Hockey Stick Growth

Hockey stick growth is the sudden increase in a business’s revenue or user base, representing a hockey stick-shaped growth.

Hole

A ‘hole’ arises due to a missing electron in the valence band, which normally participates in covalent bonding between atoms

Horizontal Marketplace

A horizontal marketplace has consumers and sellers from a diverse range of industries. They cater to a broad target audience

Hybrid AI

Hybrid AI is essentially a teamwork approach between two different AI techniques – machine learning and symbolic AI.

Hybrid Integrated Circuit

A hybrid integrated circuit is a miniaturised electronic circuit that combines different electronic components on a single platform

Hybrid SaaS Sales

A hybrid SaaS sales model blends traditional sales with product-led growth for seamless CX and software integration as tech needs evolve.

Hyperlocal Delivery

Hyperlocal delivery is a business model and service that focusses on delivering goods and services to customers within a small geographic area

Immersion Lithography

In semiconductor manufacturing, immersion lithography creates smaller and more intricate features on wafers

Inbound Logistics

Inbound logistics is the company getting the materials and goods it needs, from ordering them from suppliers to storing them in facilities

Incoterms

Incoterms are a set of internationally recognised rules established by the International Chamber of Commerce (ICC)

Influencer Marketing

Collaboration between brands and individuals who possess significant credibility and influence within a niche.

Inventory Management

Involves necessary processes to trace inventory levels, monitor stock movements and fulfil customer orders.

Investor Confidence

Investor confidence refers to the degree of willingness among investors to engage in investment activities

IPO

An IPO is the sale of securities to the public in the stock market.

KYC

Know your customers (KYC) is a business process to verify and authenticate client identities and gather data to prevent illegal activities.

Large Language Models

LLMs is an advanced language model capable of near-human language understanding and generation in AI applications.

Last-Mile Delivery

It refers to the final leg of the logistics process, when goods at transported to the end customer.

Late Stage Funding

Late stage funding is provided to companies that have progressed beyond the early stages of development.

Latent Space

A latent space is a kind of hidden space, often with many dimensions, that captures the important features of a set of data.

Lead Investor

A lead investor, typically the primary contributor in a funding round, holds substantial sway over the company’s direction and strategy.

Lean startup

Lean startup is an efficient business approach emphasising iterative product development, quick experimentation and customer feedback.

Less-Than-Truckload Shipping

LTL Shipping, is a method used to transport small freight shipments that don’t require the full capacity of a truck trailer

Light-Emitting Diode

A light-emitting diode (LED) is a semiconductor device that emits light when an electric current flows through it

Limited Partner

LPs are entities or individuals who contribute capital to VC funds.

Liquidation

Liquidation is closing a business by selling assets to pay debts and distributing remaining funds to stakeholders due to financial insolvency.

Liquidity

Liquidity measures how quickly a business or person can convert assets into cash. Some assets convert faster than others

Lithography

Lithography is a critical process that uses light to transfer intricate circuit (IC) patterns onto a silicon wafer

M&A

M&As are strategic moves aimed at expanding a company’s presence, capturing a larger market share

Machine learning

ML is a subset of artificial intelligence (AI) that allows computers to learn without being explicitly programmed.

Market capitalisation

Market capitalisation, also referred to as a market cap, represents the total value of a company according to the stock market’s assessment.

Market Penetration

Market penetration drives a company’s market share through customer acquisition or increased usage among existing customers.

Market Research

Market research is a process of gathering and analysing a market, including potential customers, competitors and industry trends.

Markov Chain Monte Carlo (MCMC)

Markov Chain Monte Carlo (MCMC) is used in statistics & various scientific fields to sample from complex probability distributions.

Mezzanine Financing

Mezzanine financing is a hybrid funding combining debt and equity, strategically utilised by companies for diverse needs like expansion.

Micro VC Fund

Micro VC funds are specialised funds for early stage startups

Microprocessor

A microprocessor is a complex, programmable integrated circuit (IC) on a single chip that can execute instructions

Minimum Viable Product

A lean startup approach to efficiently test a product idea with minimal features for validation and feedback.

Mobile Commerce

Mobile commerce (m-commerce) refers to any commercial transactions that take place via apps or mobile sites

Modern Trade

Modern trade refers to selling goods through large-scale, organised retail stores such as supermarkets, hypermarkets, department stores

Moonlighting

Moonlighting is the practice of having additional employment outside of business hours of primary employment

Moonshot

A bold goal, inspired by the 1969 moon landing, demanding innovative thinking and technology to address major global issues.

Moore’s Law

Moore’s Law is the observation that the number of transistors on a microchip doubles about every two years, leading to exponential growth in computing power

MOSFET

A Metal-Oxide-Semiconductor Field-Effect Transistor (MOSFET) is a fundamental building block of modern electronics

MPOS Device

A mobile point-of-sale (MPOS) system transforms a tablet or smartphone into a checkout point, making it a portable cash register

MVP In SaaS

A simplified software version with essential features for user feedback to validate the core product.

N-Type Semiconductor

An n-type semiconductor is a type of semiconductor material that shows increased conductivity when donor impurities are introduced

National Logistics Policy

National Logistics Policy’s goal is to drive economic growth and enhance the country’s business competitiveness

Natural Language Generation

Natural Language Generation, an AI process, enables computers to generate human-like text in response to data or information inputs.

Natural Language Understanding

Natural language understanding is an AI branch for computers to grasp human language and blend CS, linguistics, and psychology.

NDA

A legally enforceable agreement to maintain confidentiality of information.

Net Promoter Score

Net promoter score in SaaS measures customer loyalty based on their likelihood to recommend a product or service, scored on a 0 to 10 scale.

Neural Scene Representation

A Neural Radiance Field is a recent advancement in deep learning that reconstructs a 3D scene from a collection of 2D images

No-Shop Clause

A no-shop clause found in a term sheet or investment agreement is like a promise between the venture capitalist and the startup.

Non-Delivery Report

When a shipment cannot be delivered successfully for various reasons the logistics provider often sends a notification to the shipper

OKRs

Goal-setting framework for businesses to set and track objectives and outcomes.

Omnichannel

The omnichannel model ensures a seamless consumer experience across multiple touchpoints for direct-to-consumer brands.

Online Marketplace

Online marketplace refers to an ecommerce store where products are listed and sold by several third-party vendors

Order Fulfilment

Order fulfilment is the entire process that takes place from the moment a customer places an order to the moment they receive their purchase

Outbound Logistics

Outbound logistics focusses heavily on storing and transporting finished products, and begins when a customer places an order

Overfitting

Overfitting is a common problem in machine learning that occurs when a model becomes too aligned with the training data.

P-Type Semiconductor

A p-type semiconductor is a type of semiconductor material that shows increased conductivity when donor impurities are introduced

P2P Lending

P2P Lending connects borrowers and lenders online, bypassing traditional institutions for direct peer-to-peer transactions.

Pari Passu

Pari Passu ensures equal entitlement to any accessible funds during a liquidity event, such as a company sale.

Patient Capital

Patient capital is a long-term investment focused on businesses or projects requiring time to mature for profitable returns.

Payment Gateway

A payment gateway securely manages online transactions, encrypting and processing electronic payments between merchants and customers.

Payments Bank

A payments bank operates like a leaner, digital-first version of a traditional bank, focussing on facilitating payment transactions

Photoconductivity

Photoconductivity is the phenomenon where certain materials become more electrically conductive when exposed to light

Photoelectric Effect

The photoelectric effect is a phenomenon where light knocks electrons out of a material, resulting in the emission of these electrons, called photoelectrons

Photolithography

In semiconductor manufacturing, photolithography is a process that uses light to transfer circuit patterns onto a silicon wafer

Pitch Deck

A comprehensive document that outlines the key aspects of a startup.

Pivot

A pivot in business refers to a significant change in a company’s strategy.

Point-Of-Sale Device

A point-of-sale (POS) device is a system used by businesses to process customer transactions and manage sales

Post-Money Valuation

Post-money valuation refers to the estimated market value of a company after it has received external financing or capital injections

Pre-Emption Right

Pre-emption rights give current shareholders the legal privilege to buy more shares before they’re offered to outside parties in a startup.

Pre-Money Valuation

Pre-money valuation represents the estimated worth of a company before it secures new capital from external sources, such as investors or through public offerings

Predictive Analysis

Predictive analytics is a powerful tool that uses data to forecast future outcomes and trends.

Preferred Shares

Preferred shares, or preferred stocks, offer distinct advantages to shareholders over common shareholders in a company.

Printed Circuit Board

A printed circuit board is a thin board made of insulating material that has thin layers of metal (usually copper) bonded to it.

Private Equity Funds

A private equity fund is an alternative investment class wherein investors put in capital in non-listed private companies.

Pro Rata Rights

Pro rata rights or proportional rights let existing investors keep their ownership stake by investing more when a company raises funding.

Probabilistic Model

A probabilistic model predicts future events by considering uncertainty and expressing possibilities through probabilities.

Probability Density Function

A probability density function (PDF) describes the likelihood of different outcomes for a continuous random variable.

Product Catalogue

A product catalogue showcases products and gives customers the necessary information to make a purchase.

Product development

Product development is the journey of bringing an idea to market. It involves brainstorming, researching, testing, and launching the product

Product Moat

Product moat is competitive advantage that a specific product enjoys which allows the product to maintain its market share and profitability

Product Qualified Account

Product qualified account is a client using a product that suggests the user is getting value out of an offering and ready to buy more

Product Qualified Lead

A product-qualified lead is someone who experienced value using a SaaS product through a free trial or limited features indicating potential conversion.

Product-Led Growth

Product-led growth (PLG) is a strategy where a company relies on its product to attract, engage, and retain customers.

Product-Led GTM

A product-led go-to-market (GTM) strategy centres on the product as the primary engine for customer acquisition, retention and growth

Product-Market Fit

The product’s alignment with a well-defined market that has a pressing need that the product can effectively address.

Proof Of Concept

A proof of concept (POC) is essential for early stage SaaS startups to validate product ideas’ feasibility and financial viability.

Proof Of Delivery

Proof of Delivery acts as a legally binding receipt, confirming that a shipment has been delivered to the intended recipient

Prototype

A prototype is an early, trial version of a product/service made to test and improve ideas before the final version is created.

Quantum Generative Model

A quantum generative model, an ML algorithm, uses the principles of quantum mechanics to generate complex data distributions.

Quantum tunnelling

Quantum tunneling is a phenomenon in quantum mechanics where a particle passes through a potential energy barrier that it classically should not be able to surmount

Quick Commerce

Quick commerce is a type of ecommerce that prioritises super-fast deliveries, typically getting goods to customers within an hour or less

Recurrent Neural Network

RNNs are artificial neural networks designed to handle sequential data like text, speech or financial records.

Redemption rights

Redemption rights allow investors to reclaim their investment or sell shares based on agreed conditions for an exit strategy.

Reinforcement Learning

Reinforcement learning, a subfield of ML, enables intelligent agents to learn optimal behaviour by rewarding and punishing.

Remittance

In e-banking context, remittance is the frequent transfer of funds between individuals or entities across borders.

Renewal Rate

Renewal rate is a metric to measure the percentage of customers renewing subscriptions when their contracts end.

Responsible AI

Responsible AI is a comprehensive approach to AI that considers the ethical, social and legal implications throughout the entire AI lifecycle

Return On Investment

ROI is a crucial financial metric that measures the profitability of an investment relative to its cost.

Return To Origin

RTO in ecommerce refers to a situation where a package cannot be delivered to the customer and is returned to the seller

Revenue Based Financing

Companies raise capital in exchange for a portion of their revenue to grow and scale.

Reverse Logistics

Reverse logistics is the process of moving goods from their typical final destinationback upstream in the supply chain for various purposes

Right Of First Refusal

ROFR grants an investor the initial opportunity to buy more shares in a startup before they’re available to others.

Robo advisory

Robo advisory is AI-powered automated financial planning, acting as a virtual advisor for investment decisions.

Rolling Fund

It allows fund managers to add new capital quarterly or yearly by auto-renewing capital commitments.

Route Optimisation

Route optimisation is finding the most efficient routes for logistics vehicles, considering various factors and constraints

Run Rate

Run Rate predicts the company’s financials based on current trends

SaaS

Software as a Service is a cloud-based software delivery model where users access applications over the internet on a subscription basis

SaaS Sales Funnel

A SaaS sales funnel is a visual tool used by SaaS companies to track the process of turning potential customers into paying subscribers.

SAFE Notes

SAFE notes are startup investments with future equity conversion, avoiding early valuation complexities.

Sales-Led GTM

A sales-led GTM strategy is an approach where the sales team takes the lead in developing and executing the GTM strategy

Scalability

A business’s ability to grow efficiently without overspending or compromising quality using technology.

Search Engine Marketing (SEM)

A form of digital advertising that aims to increase a website’s visibility on search engine results pages.

Search Engine Optimisation

A set of strategies and techniques aimed at improving a website’s visibility on search engine results pages.

Seed Funding

Seed funding is the startup’s first stage of investment while it is in the ideation/inception stage

Semi-Supervised Learning

Semi-supervised learning combines the strengths of labelled data and unlabelled data to create effective learning models.

Semiconductor Gate

The gate electrode is a thin film of a conductive material deposited on top of an insulator layer in a transistor

Semiconductors

A semiconductor is a material that falls between a conductor and an insulator regarding its ability to conduct electricity

Service-Level-Agreement

A service-level agreement is a formal agreement between a service provider and a customer that outlines the expected level of service

Share Dilution

Share dilution occurs when a company issues more stock, reducing the ownership percentage of existing shareholders.

Shareholder agreement

Shareholder agreement is pivotal in managing the shareholder dynamics of a firm, serving as a crucial legal document for regulation.

sidecar

Sidecar is a secondary investment fund alongside a primary fund or project to offer supplementary capital, often on a per-deal basis.

Silicon

Silicon is a chemical element with the symbol Si and atomic number 14. It is a hard, brittle crystalline solid with a blue-grey metallic lustre

Silicon Wafer

A silicon wafer is a thin slice of crystalline silicon typically grown using the Czochralski process, which involves pulling a crystal seed from a molten silicon bath.

Single Electron Transistor

A single electron transistor — is a transistor that operates on the principles of quantum mechanics and utilises the behaviour of single electrons

Smart Contract

A smart contract is a self-executing digital agreement on a blockchain, automating and enforcing terms without intermediaries.

Social Media Advertising

Social media advertising refers to promoting products, services, or content through paid advertisements on social media platforms.

Soft Launch

Soft launch is the limited distribution of a product/service to a small user base for evaluation and making adjustments before a wider release.

Soonicorn

A rapidly growing startup that has the potential to reach a valuation of $1 Bn.

SPAC

SPAC, aka special purpose acquisition company, is a shell trade company created to merge with a private company to make it public.

Special Purpose Entity

Special purpose entity is a separate legal entity created for specific tasks, like isolating financial risks from its parent company.

Spintronics

Spintronics, is a rapidly developing field that explores the potential of utilising the spin of electrons in solid-state devices

SQL

SQL indicates when a potential customer is ready to purchase its products

Startup Incubator

A startup incubator supports early stage startups through mentorship, capital & other resources.

Startup Investors

Startup investors put a certain amount of capital into a business with the expectation of return on investment

Stock Keeping Unit (SKU)

A unique alphanumeric code assigned to each distinct product or item in a company’s inventory.

Super Angel Investor

Super angel investors are affluent individuals backing early-stage startups for equity or debt by providing funding and mentorship.

Supervised Learning

Supervised learning in ML trains algorithms with labelled data, where each data point has predefined outputs, guiding the learning process.

Supply Chain Finance

Supply Chain Finance optimises cash flow in a supply chain through financial tools and tech to promote collaboration among stakeholders.

Supply Chain Management

Supply chain management is the strategic orchestration of activities of a product’s journey

Sweat Equity

Sweat equity is an individual’s value in the company through hard work and time, not money

Syndicate

A syndicate is an SPV where multiple investors contribute money to make various investments.

Tag-Along Rights

Tag-along rights grant minority shareholders the option to sell their shares alongside majority shareholders during a third-party sale.

TAM

TAM is the potential revenue from a market’s full customer base and guides companies to allocate resources for launching new products.

Target Market

Target market refers to a specific group of potential customers that a business aims to reach with its products or marketing efforts.

Technological Singularity

A technological singularity is a hypothetical event where AI surpasses human intelligence, resulting in profound consequences for humanity.

Term Sheet

A non-binding document that outlines the key terms and conditions of an investment or exit.

Third-Party Logistics

Third-party logistics (3PL) refers to the contractual delegation of logistics operations to a specialised service provider

Tokenisation

Tokenisation replaces sensitive data with a valueless identifier for secure representation in payment transactions and data protection.

Traction

Traction gauges a startup’s progress through customer interest, engagement, demand and revenue.

Trade Financing

Trade financing facilitates global trade via financial tools to manage risks and flow of goods and services between buyers and sellers.

Training Data

Training data is a collection of examples that the model learns from to identify patterns and make predictions.

Transformer Based Models

A type of neural network architecture that has revolutionised natural language processing in recent years.

Transistors

A transistor is a tiny but powerful electronic component that acts like a switch or an amplifier

UI, UX

UI, UX represent the combined effort of designing the visual and functional aspects of a digital product to create an engaging experience.

Underfitting

Underfitting refers to a scenario in ML where a model fails to capture the underlying patterns within the data effectively.

Unicorn

Privately held companies or startups that are valued $1 Bn or above.

Unsupervised Learning

In ML, unsupervised learning algorithms analyse and discover hidden patterns or structures within unlabelled data.

Upselling

In SaaS, upselling encourages current customers to purchase upgraded products with premium features to drive growth.

User Acquisition

User acquisition refers to the process of gaining new users or customers for a product, service, or platform.

User generated Content

User generated content refers to any type of content – text, images, videos, reviews – that is created by users or consumers of a brand.

Valuation

Valuation refers to the overall worth of a company

Value Proposition

A compelling statement that outlines the unique benefits and value a product, service, or offer provides to customers.

Variational Autoencoders

VAEs are an artificial neural network architecture to generate new data which consist of an encoder and decoder.

Venture Capital (VC)

Venture capital (VC) funding is a financing option for startups to raise money from investors in exchange for an equity share

Venture Debt Funding

Venture debt funding is for startups and early stage ventures that have already raised equity capital from venture capital investors.

Vertical Marketplace

Vertical marketplaces are ecommerce platforms bringing together several brands/vendors to cater to customers’ needs

Vesting

Vesting is when startup founders and employees earn assets like stock options over time.

Virtual Cards

Virtual cards are temporary, one-time-use payment cards generated online with unique details for specific transactions or limited timeframes.

Voting Rights

Voting rights are issued only to those shareholders who are invested in the long-term growth of a business.

Warehousing

Warehousing is storing physical goods or inventory securely before being sold or distributed. Warehouses are designed to protect products

Washout Round

A washout round in venture capital slashes existing investors’ ownership, especially common shareholders’, in startups during funding rounds.

Waybill

A waybill is a document that acts like a receipt for a shipment of goods. It is issued by a carrier, such as a trucking company

Wealthtech

Wealthtech is the intersection of finance and technology using tech tools like AI/ML and data analytics to automate wealth management.

Working Capital

Working capital is a company’s operational cash for daily functions like bill payments, supply purchases and ensuring smooth operations.

Write Off

Reducing the value of an asset, while debiting the expense account.

X-Ray Lithography

X-ray lithography is a high-resolution patterning technique to fabricate micro and nanoelectronic devices

XaaS

XaaS refers to a cloud computing model where various services, apps and resources are delivered on a subscription basis.

Zero Data Retention

Zero data retention is deleting data once its primary purpose has been fulfilled, without intentionally storing it for future use.

Zero-Shot Learning

Zero-shot learning is an ML approach that uses pre-trained models to classify test data from classes not present during training.

Zombiecorn

Zombiecorn means a startup with a valuation of over $1 Bn that struggles to achieve sustainable growth or profitability.

Zone Of Proximal Development

ZPD is the gap between a learner’s independent abilities and what they can achieve with guidance from a more knowledgeable other (MKO).

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