What Terms Should Entrepreneurs Know?
With digital transformation, entrepreneurial activities are gaining speed and volume every day, increasing the number of terms used in the field of entrepreneurship. Due to this situation, the terms entrepreneurs should know are also transforming with the new world order. If you have a startup idea but are unsure how to express it, you should definitely check out our article. Because we have compiled entrepreneurial jargon that you can use in your startup presentations.
Before delving into entrepreneurial terms, let’s briefly look at what a startup is and who is called an entrepreneur. Because the first step to effectively using entrepreneurial terms is a clear understanding of the entrepreneurship concept.
Although a startup is defined as taking action to bring a specific business to life, entrepreneurship generally means combining new ideas with financial elements to create value. All these determined values can be produced to create commercial activity or social benefit. So, what are the terms entrepreneurs should know? Let’s take a look together.
Angel Investor or Business Angel
One of the most well-known terms in entrepreneurial jargon, an Angel Investor, is known as an individual who invests their own money in a startup in exchange for an ownership stake in the business. These investors typically invest their money in the early stages of a business.
Acting as a guide for newly established businesses, the Angel Investor closely monitors the successful business establishment process. Angel investors invest in sectors where they have knowledge and experience, as they mentor the companies they invest in.
Seed Capital
The initial capital that entrepreneurs must have to bring their projects to life is called seed capital.
Crowdfunding
Crowdfunding is the name given to the financing needed for a startup to receive the necessary funds, provided by a community willing to invest in the business.
Lean Startup
Lean Startup approaches events with a scientific perspective. Lean Startup aims for businesses to transform into a more innovative model and achieve success by using time efficiently.
SWOT Analysis
SWOT analysis is developed to create a future-oriented strategic plan by comparing strengths, weaknesses, opportunities, and threats. SWOT Analysis, which helps you evaluate your business idea from all angles, is an effective method preferred by entrepreneurs as well as various other sectors.
Incubation Center
Incubation Centers, developed to help newly established startups survive in the sector, are founded for assistance purposes. Also known as business hubs, Incubation Centers offer office space, facilities, and capital support to startups in their initial stages.
Venture Capital
Venture capital is known as investors putting money into early-stage companies that they believe will gain value in the long term. This type of investment is also known as startup or courage capital.
Venture capital, known for providing financial investment support to newly established startups, generally supports startups that have already begun implementation.
Private Equity
Private Equity refers to investments made in strong companies that have acquired a certain market share.
Unicorn
Unicorn refers to a startup reaching a valuation of 1 billion dollars. This term is also widely used in the venture capital industry.
Exit
Exit is the term given to an entrepreneur leaving a mature startup at an opportune time, selling their rights and shares. We have explained some of the terms entrepreneurs should know above, but it is important to remember that the startup world is an ever-growing and renewing field. Therefore, priorities can change according to new trends, and new concepts can emerge.
DISCLAIMER
This website has been prepared within the scope of the Women in Innovation Project, supported by the Istanbul Development Agency. The sole responsibility for the content belongs to the beneficiary, and it does not reflect the views of İSTKA or the Ministry of Industry and Technology.
