AOV

Average Order Value

An ecommerce metric that measures the average total of every order placed with a merchant over a defined period of time. AOV is one of the most import...

ARR

Annual Recurring Revenue

Annual recurring revenue (ARR) refers to revenue, normalized on an annual basis, that a company expects to receive from its customers for providing th...

Ask

Fundraising Ask

Amount of funding (USD) the company states it is seeking for an upcoming funding round.

Burn

Burn Rate

Burn rate is a measure of how quickly a business is losing, or burning through, money. This is a particularly important metric for startups and ventur...

CAC

Customer Acquisition Cost

The cost of convincing a potential customer to buy a product or a service. With software, customers usually prefer the self-service approach; so...

Grow

Growth rate

We measure growth as a rate, which is the ratio of the cumulative quantity at the end of a given period to that quantity at the beginning of the perio...

Lftm

Customer Lifetime

Customer lifetime is the multiplicative inverse of the customer churn rate. If customer churn rate is a monthly % or yearly %, then the Customer Lifet...

PreM

Pre-Money Valuation

A pre-money valuation refers to the value of a company before it goes public or receives other investments such as external funding or financing. Put ...

Rnwy

Runway

aka Cash Runway

Months until the company has $0 in the bank at the current burn rate

SAM

Serviceable Addressable Market

aka Serviceable Available Market

Total volume of a particular product (or service) that can be sold by all vendors on the market within a territory that you are able to service for th...

SOM

Serviceable Obtainable Market

Total sales volume of a particular product (or service) that can be sold by your company within a territory that you are able to service for the plann...

TAM

Total Addressable Market

aka Total Available Market, Market Potential

Total addressable market or TAM refers to the total market demand for a product or service. It’s the maximum amount of revenue a business can possibly...