Startups speak in cryptic abbreviations and throw in some Silicon Valley slang between Danish nouns and adjectives.
That was my first impression when I first encountered the startup environment a few months ago.
Grammatical analysis of Native American tribal languages and close studies of the human speech channel have obviously not given me the necessary linguistic ballast to move among startups.
But after four months in startup land, I’m happy to report that I’m starting to understand what they’re talking about.
This text is for you if you’re new to the startup environment and you’re tired of the puzzled faces of those around you when you talk about your work. Pass this guide on and don’t have to explain again.
Startup dictionary
Here are 10 words you need to know (or pretend you know) to talk to about startups:
1) Bootstrapping
[ˈbuːdˌsdɹæbeŋ]
Bootstrapping startups, according to the myth, live on cup noodles and sleep on a sleeping mat on the damp concrete floor of the basement office.
They don’t accept investment from mom, dad or anyone else. Instead of finding investors, they have chosen to finance their business themselves.
2) Business Angel
[ˈbesnəs ˌɛjndjəl]
Business angels are mentors who help startups with business plans and investment in the company.
But of course, they are not pure Fairy God Mothers. Business angels make good money when the company grows because they receive shares in the company in return for their help.
3) Growth Hacking
[ˈgrɔwθ ˌhægeŋ]
Growth hacking revolves around one of the most important business goals for new startups: accelerating growth. But where do you learn about the little tricks that can boost your bottom line?
You can go to Growth Hacking events. Here, participants are presented with meticulous analysis of customer behavior and business models by seasoned startups (or growth hackers) who honestly share their success stories and failures in business operations.
4) Incubator
[enkuˈbæːtɐ]
An incubator acts as an incubator and cares for the very young startups. They provide companies with support, guidance and a roof over their heads during the first difficult times.
It can be smart for startups to take part in these development environments, also known as accelerators. They can create a stable framework for young companies in an otherwise chaotic startup process.
5) MVP
Minimum Viable Product
[ˈεm ˌveː ˈpiː]
When driven guys or gals put their heads together to revolutionize the market with a new product, it can be smart to test if there are customers for it.
Startups can kick off their journey with an MVP – a basic version of the product vision. Feedback from the market can then guide the further development of the MVP when the budget is ready to follow.
If a startup’s business model fails, they can choose to turn the key or change strategy.
‘Pivoting’, or making a pivot, is similar to a pivot from the world of ballet – spinning once around your axis. It means that the company abandons plan A in favor of plan B.
7) SaaS
Software as a Service
[ˈsas]
SaaS refers to software that often floats around somewhere in the internet cloud. This ensures users have access to the most recent update of a SaaS.
You typically subscribe to a SaaS service – like leasing a car instead of putting down cash. So if a startup has developed a SaaS product that you can’t live without – well, the money keeps rolling in for the startup.
8) Sweat equity
[‘swɛd ɛkwəˌti]
A job at a startup can turn a greasy teenager into a wealthy shareholder. If money is tight in the early days of the company, employees can have part of their salaries paid out in company shares.
Don’t worry: The pun is not a reference to the smell of teenage bodies in the shared office – but to shares paid for with hard work instead of cold cash.
9) Unicorn
[‘junikɒːn]
Unicorns are startups with a stock or market capitalization of at least 1 billion US dollars. So if you hear your nephew refer to his company with this term, you’re in line for a bigger Christmas present.
At the same time, don’t be discouraged if you have a startup that doesn’t fit the unicorn criteria. Because as with unicorns, these unicorns are extremely rare! Examples of Danish-started unicorns include Just-Eat, Skype and maybe soon Trustpilot.
10) VC
Venture capitalist / venturekapitalist
[ˈviːˌsiː] / [ˈveˀˌseˀ]
The VC is someone startups want to know. They are the people who hold the money that companies hope to invest in their business.
They are particularly fond of startups that have bootstrapped themselves into a strong SaaS model – the typical route to unicorn status. And if you’re a partner in a VC-hungry startup (…), your polished knowledge of the industry lingo might help you gain ground on the Danish startup scene.
Still confused?
If you are still confused, there is no need to panic.
The startup community in Denmark is packed with people who remember what it’s like to be new. So if you can’t remember the difference between MVP and SaaS, don’t hesitate to ask.
You’re not expected to be able to explain the ABCs of startups (unless it’s in your job description). Experience has taught me that speaking with a confident voice and pronouncing words reasonably well can go a long way. So until you get a firm grasp of the jargon, you might be able to get away with faking it.
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