Startup Glossary
A complete library of terms, metrics, and calculations for your startup.
A complete library of terms, metrics, and calculations for your startup.
Burn rate is defined as the negative free cash flow (FCF) during the month.
R&D expenses are all costs associated with the research and development of your product or service.
Customer Acquisition Cost (CAC) is how much money you spend in sales and marketing to acquire one new customer.
Customer Acquisition Cost (CAC) payback is the number of months it will take to recover the cost of acquiring a customer.
Cash runway is the number of months until cash runs out.
Sales and marketing expenses are the internal and external expenses incurred that are directly and indirectly related to selling and marketing a product or service.
G&A expenses are expenses incurred that aren’t directly tied to producing or selling a product or service, but necessary to maintain business operations overall.
MRR is the amount of predictable revenue your business earns each month from customers.
Total revenue is your total revenue from recurring and non-recurring revenue streams.
Customer churn is the percentage of customers your business lost in a set period of time.
Revenue churn is the percentage of monthly recurring revenue (MRR) your company lost from downgrades and cancellations in a given period of time.