Entrepreneurship Terminology and Resources
Accelerator – A program, group, or individual who connects startups with mentors, resources, funding. Builds upon the start-up’s foundations (already having an idea or business model in place) in order to advance their growth.
Angel Investor – An individual who provides capital to a business start-up, usually in exchange for shares or partial ownership of the company. Invests may be one-time or ongoing, depending on need.
Crowdfunding – Utilizing social media and online groups to gather small amounts of capital from multiple people in order to fund an idea. This is known as alternative finance.
Exit Strategy – A plan by the entrepreneur to sell their ownership in the company to another company or investors. Usually detailed in the initial business plan, prior to starting the business.
Funding Rounds – The different stages of funding available for startups, which include seed/angel funding, as well as Series A/B/C funding or additional. Series funding rounds typically align with optimization (Series A), building (Series B), and scaling (Series C).
Incubator – An organization that accelerates the growth and success of startups by providing support and services such as physical workspace, shared facilities, guidance, and funding.
Intellectual Property – A collection of ideas and concepts; the ownership of ideas. Can be protected through patents, trademarks, or copyrights.
Pitch – A presentation of a business idea to a potential investor. Can be a formal presentation, a conversation, or a written document. Related Term: Elevator Pitch – A briefer version of a pitch, good for use in a networking situation. Named after the short time you have during a quick elevator ride.
Seed Funding – Capital that initially starts a new business or idea, attained from individual assets, family/friends, venture capitalists, or angel investors. Seed investors often gain a stake in the business as a result of funding the start-up.
Technology Transfer Office – These university offices are responsible for the commercialization and transfer of technology that occurs in the university. They facilitate bringing these research developments to the market.
Venture Capital – Funds provided to a startup that is seen as having long-term grown potential. Controlled by an individual or group, these investments are made in return for large ownership of the business and is expected to have a high rate of return.