Gross Retention
Gross retention, or gross dollar retention, measures the percentage of revenue a company can retain from existing customers.
Welcome to the Arbo Glossary! This concise and comprehensive resource provides definitions and explanations of key accounting, finance, and startup terms.
Gross retention, or gross dollar retention, measures the percentage of revenue a company can retain from existing customers.
Repeat customer rate measures the percentage of customers who make multiple purchases or engage with a business repeatedly over a given period. It...
Retention refers to the ability of a business to retain its customers over a specific period. It is a critical metric for customer loyalty and...
Revenue recognition is recording and reporting revenue in a company's financial statements. It involves determining when revenue should be recognized...
A sales pipeline is a visual representation of a customer's stages during the sales process, from initial contact to closing a deal. It helps sales...
Sales and marketing efficiency measure the effectiveness of a company's sales and marketing efforts in generating revenue. It assesses the return on...
An accredited investor an individual or entity that meets certain financial thresholds set by the Securities and Exchange Commission (SEC) in the...
An angel investor, also known as a seed investor, is an individual who invests personal funds in startup companies in exchange for equity. Angel...
A capitalization table, or cap table, is a record that outlines the ownership structure of a company.
A convertible note is a type of debt instrument commonly used in early-stage fundraising. It is a loan that can be converted into equity at a later...
A data room is a secure location where confidential and privileged information is stored with restricted access. It is commonly used in business...
Double-trigger acceleration is a provision related to equity vesting in which an employee's unvested stock or options become fully vested upon two...
An Entrepreneur in Residence (EIR) is an individual, often a former startup founder, who works with a venture capital (VC) firm.
An MVP is the initial version of a product that includes essential features and functionalities.
Officers are individuals appointed by a corporation's board of directors to hold specific executive positions within the company, such as CEO, CFO,...
An option pool refers to a block of shares set aside by a company to be granted as stock options to employees, typically used as a form of equity...
Pay-to-play is a provision that requires existing investors to participate in subsequent funding rounds to maintain their pro-rata ownership stake....
A pitch deck is a presentation of slides to pitch a business idea or investment opportunity to potential investors. It typically includes an overview...
The post-money valuation is the value of a company immediately after a financing round, including the newly raised funds. It is calculated by adding...
Pre-money valuation is the value of a company before a financing round or investment. It represents the company's worth based on its assets,...
The proportional allocation or distribution of shares, investments, or ownership rights. In startup investments, pro rata rights allow existing...
Product velocity refers to the speed at which a company can develop and release new products or features. It is often a crucial factor in staying...
The right of first refusal (ROFR) is a contractual right that allows a party to enter into a transaction or purchase assets before being offered to...
A roll-up vehicle (RUV) is a specialized entity, such as a special purpose vehicle (SPV), formed to aggregate investments or assets in a particular...
The portion of the serviceable available market (SAM) a company can realistically capture or penetrate. It considers factors such as competition,...
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