Montreal Ventures

Glossary of
Venture Capital

The essential vocabulary of the startup and investment ecosystem, explained clearly and visually.

Benchmark

Benchmarking is the process of comparing a company's processes, metrics, and practices against those of industry leaders...

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Burn Rate

Burn rate is a financial metric that measures the speed at which a company consumes its cash capital...

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Customer Acquisition Cost

CAC, or Customer Acquisition Cost, is a metric that indicates the average amount invested to convert a...

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Cap Table

A Cap Table is a detailed record, usually organized in a spreadsheet, that outlines a startup's ownership structure. It...

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Churn Rate

Churn Rate, or Cancellation Rate, measures the percentage of customers or revenue a company loses in...

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Customer Success (CS)

Customer Success, or Sucesso do Cliente, is a proactive, long-term business strategy dedicated to ensuring that...

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Design Thinking

User-centered problem-solving methodological approach, organized into divergence and convergence phases.

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Due Diligence

Due diligence is the process of in-depth auditing and investigation performed by investors before they formalize the signing of a...

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Early Stage

Early Stage refers to the initial phase of startup development, generally comprising Pre-seed investment rounds and...

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Equity

Equity represents ownership or the right to own a portion of a company. In the startup world,...

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Employee Stock Ownership Plan

ESOP is an incentive plan that grants startup employees the right to purchase...

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Exit

An exit, or sale, is the liquidity event planned by founders and venture capital investors to sell their...

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Key Performance Indicator

KPIs, or Key Performance Indicators, are quantifiable measures used to evaluate the success of an organization or a...

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Lifetime Value (LTV)

LTV, or Customer Lifetime Value, is a metric that estimates the total revenue (or profit...

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MVP (Minimum Viable Product)

The Minimum Viable Product, or MVP, is the version of a product that contains only the set of strictly necessary features...

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North Star Metric

The North Star Metric is the key indicator that best expresses the core value a product delivers to its...

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Pitch

Pitch is a concise and structured presentation, usually supported by visual aids (Pitch Deck), whose objective is to communicate the...

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Runway

Runway is the estimated timeframe a startup has before it runs out of its cash reserves, starting...

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Storytelling

Storytelling is the application of logical narrative structures to the communication of corporate information and investment theses. In the sector...

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Valuation

Valuation is the technical process of estimating a startup's market value. Unlike established companies, valuation...

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