Series on Startup Lingo: H, I & J
terms to know
Yayyy!!! It’s the last Friday of the month.
Today, we are combining three letters of the alphabet together and learning a lot more 😉
Let’s dive in.
- Hockey Stick
Hockey stick growth is a pattern that shows sudden and extremely rapid growth after a long period of linear growth. It usually occurs when a startup finally strikes a chord with its market niche and is able to benefit from favorable market conditions. Investors want a startup’s growth curve to look like a hockey stick, potentially doubling metrics like sales or number of active users each year.
- Inbound Marketing
Inbound marketing is a technique of acquiring customers by drawing them to your product instead of pushing your product to them. Examples include SEO, email marketing, social media, etc.
An incubator offers businesses resources and mentorship to get through some of the initial growing pains of startup life. They are primarily focused on innovation, “incubating” an idea into a viable business model.
- Initial Public Offering (IPO)
An IPO is when a private company sells its shares to the pubic, allowing them to raise capital from public investors. It simply means the company’s ownership is transitioning from private to public.
- Intellectual Property
For startups, intellectual property refers to intangible assets like techonlogical innovations. Legal protection of intellectual property is important because it turns the company’s intangible assets into exclusive rights, so competitors are unable to benefit from their innovations. Intellectual property rights encourage and rewards innovations.
- Investment Syndicate
A syndicate is a group of investors that pools their capital to invest into deals. It is an investment vehicle that allows investors to co-invest in startups.
- Joint Venture
A joint venture involves two or more businesses pooling their resources and expertise to achieve a particular goal. It is characterized by shared ownership, shared returns and risks, and shared governance.
There you have it
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