Know a couple of friends who are in the startup game and have no idea what they are referring to, or looking to launch a startup of your own? A list of the 8 common startup terms will get you up to speed!

Accelerator 

An investment is made and in return the investor seeks a stake in the company and a cash component of up to $50,000. Startups who choose this route will attend classes, be provided mentorship and spaces to work from. They are also given a deadline ranging from one to six months to complete their initial idea and it typically ends with Demo Day where a pitch by the startup is made to potential investors. 

Bootstrap

To fund one’s own startup right from the get-go or to reinvest initial profits made back into the startup. 

Burn Rate

The amount of time that the startup can continue functioning like how it is currently with the amount of financial resources or funding they have. To calculate, add all overheads, pay cheques, rent and other miscellaneous monthly necessities together, then divide it by the amount of cash capital on hand. 

Incubator

Companies (usually larger or listed ones) that help chosen startups by providing them with a space to work, mentorship, and funding in exchange for a stake in the start-up. 

Social Venture

A “for-profit” or “non-profit” startup that focuses on providing a solution that will benefit charities, people with disabilities or the less fortunate. This can be anything from opening a cafe that employs those diagnosed with down syndrome as wait staff, or selling craft products made by the disabled community. 

Seed Funding

The very first round of and early-stage funding for a startup, usually in the developmental stages of a startup, which can go up to 1 million dollars in capital. 

Interested in taking up a scholarship? View the full and comprehensive list of scholarships here.