Startup glossary

A model that splits the customer journey into five steps: acquisition, activation, retention, referral and revenue. It shows where the product loses the most people.

Optimising content for answer engines such as Google's AI Overviews or ChatGPT: direct answers, clear sources, well-structured text. It's SEO written for whoever quotes you, not just whoever lists links.

Software built on a language model that doesn't just answer: it uses tools, reads data and takes actions, such as updating a CRM or drafting a document, within rules you set.

The way two pieces of software talk to each other. When an app shows a payment or a map, it's usually calling another service's API.

A subscription product's recurring revenue on a yearly basis, roughly MRR times twelve. It's the figure SaaS companies and investors use to size the business.

How much cash the startup gets through each month, net of revenue. Together with the cash in the bank it tells you how many months are left before you need to raise or turn a profit.

An individual who invests their own money in early-stage startups, often bringing expertise and contacts too. Angels usually come in at pre-seed and seed, before venture capital funds.

The average cost of winning a customer: sales and marketing spend divided by the new customers in the same period. Always read it next to LTV.

The table showing who owns shares in the company and in what proportion, before and after each round. It's one of the first things investors ask for.

The share of customers, or revenue, lost over a period. In a SaaS it decides whether growth holds: Athleex, our own SaaS, has a Churn Radar that flags athletes at risk of leaving before they go.

A part-time CTO from outside the company: picks the stack, sets the roadmap, leads the team and handles investors' technical questions, without a full-time hire.

The techniques that get a site shown and cited in the answers of generative engines such as ChatGPT, Perplexity or Gemini. It rests on original content, sourced data and pages that are easy to quote.

The plan for getting a product to customers: who it's for, the message, the channels and the price. It takes centre stage after the seed round, when growth has to become repeatable.

A quick way to rank experiments: score each one from one to ten for impact, confidence and ease. It isn't an exact science, but it stops you choosing on gut feeling.

An Italian legal status for small and medium-sized companies that invest in innovation, set out in Decree-Law 3/2015 (art. 4). It covers innovative companies that don't qualify, or no longer qualify, as an innovative startup.

Italy's legal status for young tech companies: an unlisted limited company under five years old, developing high-tech products or services, entered in a special section of the business register. A non-Italian founder can qualify through an Italian company, or an EU/EEA one with a site or branch in Italy (MIMIT).

A page with a single goal, such as collecting sign-ups or selling one product. For a startup it's also the cheapest way to test an idea before building it.

An approach that treats the idea as a hypothesis: build the minimum, measure, learn, then decide whether to carry on or change course.

An AI model trained on large amounts of text that can understand and generate language. It's the engine behind chatbots, assistants and AI agents.

The value a customer brings over the time they stay, net of the cost of serving them. A widely quoted rule of thumb (David Skok) wants LTV at least three times CAC.

A month's recurring revenue from active subscriptions, with one-off payments left out. It's the first number to watch in a SaaS: Athleex shows it to coaches on its business dashboard.

An architecture in which one application serves many customers, each with their data kept apart. It underpins most B2B SaaS products.

The smallest version of a product that lets you learn from real customers. It isn't a prototype: it genuinely works, but only does the few things needed to test the idea.

Tools for building apps and websites without writing code, such as Bubble or FlutterFlow. Great for validating fast; when you need security, performance or bespoke features, you usually move to code.

What last year's customers are worth today, counting renewals, upgrades, downgrades and churn. For private B2B SaaS companies with contracts of $25–50k a year, the median is 102% (SaaS Capital, 2025).

The short presentation a startup uses to introduce itself to investors: problem, solution, market, traction, team and the ask.

A change of direction on a core assumption, such as the customer, the problem or the revenue model, based on what you've learnt. It isn't failure: it's the method working.

A strategy where the product itself acquires, converts and keeps customers, for instance through a free trial or a free plan. It works when people grasp the value by using the product, not in a demo.

A technical test that answers one question: can it be done? It has no users and no polished interface; it removes a risk before you invest in the product.

The first round of funding, often from founders, friends, business angels or public programmes. It pays for the MVP and the first signs of demand.

The point at which a product satisfies a market big enough for it to grow almost on its own. A common test asks users how disappointed they'd be without it: below 40% "very disappointed" you're usually not there yet (First Round Review).

A simulation of the product, often clickable, for trying out flows and interface before any code is written. It's used for user testing and to help investors see the idea.

A web app that can be installed on a phone like an app, copes with a weak connection and can send notifications. Often the quickest route to mobile without going through the app stores.

A technique that makes an AI model answer from your own documents: it first retrieves the right passages, then hands them to the model. It cuts made-up answers and keeps information current.

The share of users or customers who keep using the product over time. It's the most honest signal of value: you can buy traffic, not the wish to stay.

How many months the startup can keep going on the cash it has at the current rate of spending: cash divided by burn rate. It tells you when to start raising the next round.

Software used online on a subscription, with nothing to install: the provider hosts, updates and maintains it. Athleex, the group's SaaS for personal trainers and coaches, is one example.

A US instrument through which an investor puts money in now and receives shares at the next round, on terms agreed up front. Italy uses instruments with a similar purpose but a different legal form: ask a professional.

The round after pre-seed: it funds the search for a repeatable way to grow, and often the go-to-market. Investors look at traction, metrics and the team.

The work on technology, content and reputation that gets a site found in Google's organic results. For a startup it starts in the website's code, not after launch.

The Italian ministry's incentive for innovative startups, run by Invitalia: an interest-free loan covering 80% of eligible costs, software development included, for business plans from €100,000 to €1.5 million (MIMIT, September 2026).

The set of languages, frameworks, databases and services a product is built with. Ours is Next.js, React, TypeScript and PostgreSQL, with Capacitor for iOS and Android apps.

The partner who leads technology and product from the start, usually in exchange for equity. Until you find one, outside technical leadership can cover the decisions that matter most.

The shortcuts taken in the code to move fast, which sooner or later have to be paid back with extra work. Some is normal in an MVP; too much makes every new feature slower and riskier.

The review an investor carries out on code, architecture, security and team before investing. Preparing for it early avoids surprises mid-round.

A mechanism whereby a partner's shares are earned over time rather than owned outright from day one. It protects the company and the other founders if someone leaves early.

Writing software by describing what you want to an AI and accepting the code it produces, often without reading it line by line. Great for prototypes; production needs review, tests and security.

An application that runs in the browser, with sign-in, data and logic like installed software. Back-office tools, CRMs and SaaS platforms are almost always web apps.

The option, for Italian innovative startups and SMEs, of paying suppliers and professionals in shares instead of cash, under Decree-Law 179/2012 (art. 27). The tax treatment needs checking with an accountant.