Finances Glossary

Decode the buzzwords of the finances space
THE LANGUAGE OF FINANCES
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Startup Glossary  | Finanshels

Glossary

A comprehensive guide to understanding and communicating key startup concepts. Your Go-To Resource for Startup Terminology: A Glossary of Key Metrics, Definitions, and Formulas

Lock-Up Period

A lock-up period is a contractual agreement between a company and its investors that restricts the sale of the company's shares for a certain period of time.

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Marginal cost

Marginal cost is the additional cost incurred by a company for producing one additional unit of a good or service.

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Marginal cost calculation

To calculate marginal cost, you need to determine the change in total cost and the change in the quantity of goods or services produced.

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Markup

Markup is the amount added to the cost of a product to determine the selling price. It is calculated by dividing the difference between the selling price and the cost by the cost and expressing the result as a percentage.

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Markup calculation

To calculate the markup as a percentage, you would divide the markup by the cost and multiply the result by 100.

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Minimum Viable Product (MVP)

A minimum viable product (MVP) is a product with just enough features to be able to be used by early customers who can then provide feedback for future product development.

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Month Over Month (MoM)

Month over Month (MoM) is a term used to compare the performance of a metric or business metric from one month to the same month in the previous year.

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Monthly Recurring Revenue (MRR)

Monthly Recurring Revenue (MRR) is a metric used to track the amount of predictable revenue that a company can expect to receive on a regular basis from its subscription-based business model.

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Net Dollar Retention (NDR)

Net Dollar Retention (NDR) is a metric used to measure the overall health of a subscription-based business.

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Net Profit

Net profit, also known as net income or net earnings, is a company's total earnings or profit after all expenses, taxes, and other costs have been deducted from its total revenue.

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Net Promoter Score (NPS)

The Net Promoter Score (NPS) is a measure of customer loyalty and satisfaction.

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Net profit

Net profit, also known as net income or net earnings, is the profit earned by a company after all expenses have been accounted for.

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