Resources

The Arbo Glossary

Welcome to the Arbo Glossary! This concise and comprehensive resource provides definitions and explanations of key accounting, finance, and startup terms.

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Revenue

Gross Retention

Gross retention, or gross dollar retention, measures the percentage of revenue a company can retain from existing customers.

Revenue

Repeat Customer Rate

Repeat customer rate measures the percentage of customers who make multiple purchases or engage with a business repeatedly over a given period. It...

Revenue

Retention

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

Revenue Recognition

Revenue recognition is recording and reporting revenue in a company's financial statements. It involves determining when revenue should be recognized...

Revenue

Sales Pipeline

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...

Revenue

Sales and Marketing Efficiency

Sales and marketing efficiency measure the effectiveness of a company's sales and marketing efforts in generating revenue. It assesses the return on...

Startup Terminology

Accredited Investor

An accredited investor an individual or entity that meets certain financial thresholds set by the Securities and Exchange Commission (SEC) in the...

Startup Terminology

Angel Investor

An angel investor, also known as a seed investor, is an individual who invests personal funds in startup companies in exchange for equity. Angel...

Startup Terminology

Cap Table

A capitalization table, or cap table, is a record that outlines the ownership structure of a company.

Startup Terminology

Convertible Note

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...

Startup Terminology

Data Room

A data room is a secure location where confidential and privileged information is stored with restricted access. It is commonly used in business...

Startup Terminology

Double-Trigger Acceleration

Double-trigger acceleration is a provision related to equity vesting in which an employee's unvested stock or options become fully vested upon two...

Startup Terminology

Entrepreneur in Residence (EIR)

An Entrepreneur in Residence (EIR) is an individual, often a former startup founder, who works with a venture capital (VC) firm.

Startup Terminology

Minimum Viable Product (MVP)

An MVP is the initial version of a product that includes essential features and functionalities.

Startup Terminology

Officers

Officers are individuals appointed by a corporation's board of directors to hold specific executive positions within the company, such as CEO, CFO,...

Startup Terminology

Option Pool

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...

Startup Terminology

Pay to Play

Pay-to-play is a provision that requires existing investors to participate in subsequent funding rounds to maintain their pro-rata ownership stake....

Startup Terminology

Pitch Deck

A pitch deck is a presentation of slides to pitch a business idea or investment opportunity to potential investors. It typically includes an overview...

Startup Terminology

Post-Money Valuation

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...

Startup Terminology

Pre-Money Valuation

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,...

Startup Terminology

Pro Rata

The proportional allocation or distribution of shares, investments, or ownership rights. In startup investments, pro rata rights allow existing...

Startup Terminology

Product Velocity

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...

Startup Terminology

Right of First Refusal (ROFR)

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...

Startup Terminology

Roll-Up Vehicle (RUV)

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...

Startup Terminology

Serviceable Obtainable Market (SOM)

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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