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Non-Solicitation Agreement

Non-Solicitation Agreement

A non-solicitation agreement is a contractual provision restricting former employees from soliciting the former employer's customers or employees for a defined period. The covenant typically runs 12-24 months post-termination, covering customer non-solicitation (no outreach to former-employer customers) and employee non-solicitation (no recruiting current employees). Sometimes standalone, often part of an employment agreement or restrictive covenants, it serves as a more-enforceable alternative to non-competes because it doesn't prevent the former employee from working at a competitor but does protect the employer's customer relationships and team stability. It is generally more enforceable than non-competes acros...



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Startup Funding

Startup Funding

Startup funding is the capital a startup raises from outside sources to operate, build a product, and grow. It is drawn from a menu of options that includes equity investment (angels, venture capital, accelerators), convertible instruments (SAFEs, convertible notes), debt (venture debt, lines of credit), non-dilutive sources (grants, R&D credits), and crowdfunding. It is distinct from bootstrapping, where the founders fund the company from savings and revenue, and distinct from the specific progression of named rounds (pre-seed, seed, Series A, and beyond), which is covered by startup funding stages.

The funding source you pick determines what kind of company you are obligated to become. Venture capital and angel equity...



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Paid Search

Paid Search

Paid search is the practice of bidding on keywords to display ads at the top of search engine results pages. Ad formats include text, responsive, and shopping ads, with users signaling active intent by typing a query and pricing set in real time by auction (max bid multiplied by Quality Score equivalent). It is the workhorse of paid acquisition for any business whose customers actively search for what they sell, and the channel where intent signals are richest.

The two major platforms by spend are Google Ads (running on Google Search, Search Partners, and Google Shopping) and Microsoft Ads (running on Bing, Yahoo, AOL, and DuckDuckGo via their partnership). Google holds roughly 83 percent of global search market share in 2025, w...



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Reverse Stock Split

Reverse Stock Split

A reverse stock split is a corporate action that reduces the number of outstanding shares by a defined ratio while proportionally increasing per-share value. A 1-for-10 reverse split converts ten $0.10 shares into one $1 share, maintaining market capitalization and ownership percentages but consolidating share counts, used at public companies to maintain exchange listing requirements ($1 minimum bid) and at private companies during recapitalizations. It is economically neutral at the company level but often signals financial distress at public companies and structural restructuring at private companies.

The mechanic of a reverse stock split:

  • Board approval: board approves the reverse split, specifying the ratio and effe...


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Customer Health Score

Customer Health Score

A customer health score is a composite metric that combines multiple signals into a single indicator of an account's churn risk and expansion potential. Signals include product usage, feature adoption, engagement frequency, support ticket volume, NPS/CSAT scores, contract status, and executive sponsor relationships. Used by Customer Success Managers (CSMs) to prioritize outreach, identify at-risk accounts before renewal, and forecast retention. It's the operational tool that translates dozens of customer signals into a single "is this account healthy?" answer.

The components of a health score:

Product usage signals:

  • Daily/Weekly active users from the account (engagement frequency).
  • Feature adoption breadth (how many f...


Article

Employee vs Contractor

Employee vs Contractor

Employees and independent contractors are distinct legal categories with fundamentally different tax treatment, labor protections, benefits eligibility, and company obligations. The IRS and Department of Labor apply multi-factor tests to determine correct classification. Misclassification (treating employees as contractors to save payroll taxes and benefits costs) carries significant penalties: back taxes, interest, fines, lawsuits, and reputational damage. It's one of the most common legal errors at growing startups.

The core distinctions:

Dimension Employee (W-2) Contractor (1099)
Tax form W-2 (employer withholds taxes) 1099-NEC (no withholding)
Payroll taxes Company pays half (~7.65%) Contractor pays full ...


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Minimum Viable Product (MVP)

Minimum Viable Product (MVP)

A minimum viable product (MVP) is the smallest version of a product that lets a team collect maximum validated customer learning with the least effort. The term was coined by Frank Robinson in 2001 and popularized by Eric Ries in "The Lean Startup" (2011), where it became the foundational unit of the build-measure-learn loop.

The point of an MVP is to test a hypothesis about what customers actually want, not to ship a smaller version of a finished product. A real MVP is just enough to expose the riskiest assumption to real customer behavior. Famous examples make the standard concrete. Dropbox's original MVP was a three-minute explainer video that drove its waitlist from 5,000 to 75,000 signups overnight, before ...



Article

EBITDA

EBITDA

EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) is the measure of operating profitability calculated by adding those items back to net income. It's used widely in valuation (EBITDA multiples for mature companies and PE transactions), debt analysis (debt-to-EBITDA ratios), and cross-company benchmarking, because it removes effects of capital structure and tax jurisdiction. EBITDA is most relevant at later-stage and physical-asset-heavy businesses, and less relevant at early-stage SaaS where contribution margin and unit economics matter more. It is the most-discussed financial metric at mature companies.

The calculation:

Method 1: Net Income + Interest + Taxes + Depreciation + Amortization

Method 2: Operating I...



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Founder

Founder

Founder vs Co-founder vs CEO and Founder: Founder is the origin role, the person who started the company. [Co-founder] is the same role when there's more than one person at the origin (a co-founder is just a founder with company). [CEO and Founder] is the title combination, a founder who also currently holds the CEO job. The cap table and certificate of incorporation determine who's a founder; current employment determines who's a CEO; the two questions are independent.

A founder is a person who started a company by originating the idea, building the first version, and taking the early risk before others joined. It is the company's origin role and, unlike most roles, it does not end when the person stops working there. Once a foun...



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MRR

MRR

MRR (Monthly Recurring Revenue) is the normalized monthly value of a subscription business's recurring revenue at a point in time. It's calculated as the sum of all monthly-normalized subscription contracts: a monthly subscription contributes its full monthly fee; an annual contract is divided by 12 to get its monthly contribution. MRR is used heavily by month-billed SaaS companies and consumer subscription businesses where monthly granularity matters for operating decisions. It is mathematically equivalent to ARR (MRR × 12 = ARR) but with different operational implications because monthly tracking captures shorter-cycle business dynamics. It's the alternative to ARR most useful at consumer subscription, SMB SaaS, and month-to-month bus...



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