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Foundations

Foundations

The foundational vocabulary every founder needs before everything else. This cluster covers what a startup actually is, the categories that distinguish them (bootstrap vs venture-backed, lifestyle vs scale-up), the support ecosystem (accelerators, incubators, agencies), the early credits and grants founders chase, and the structural concepts (founder-market fit, why startups fail) that shape every decision that follows. 21 entries.

If you're new to startup vocabulary, start here. If you're a few years in, this cluster is the conceptual baseline against which everything else is read.

What a startup is

  • [Startup], the foundational definition; not every small business is a startup.
  • [Early Stage], the spectrum from idea to product-m...


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Copyright

Copyright

Copyright is the legal protection automatically granted to the creator of original works of authorship the moment they are fixed in a tangible medium. Covered works include literary, artistic, musical, software, and other creative outputs. Copyright provides exclusive rights to copy, distribute, perform, display publicly, and create derivative works for the copyright term (life of the author plus 70 years for individual works; 95 years from publication for works made for hire). It is the IP category that protects most of what software startups create (code, documentation, marketing content, designs, copywriting), automatic without any filing or registration, but with optional registration that provides meaningful additional rights...



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Product Differentiation

Product Differentiation

Product differentiation is the set of attributes that make a product meaningfully distinct from competitors, allowing the company to compete on something other than price. It is one of the foundational concepts of competitive strategy, formalized in Michael Porter's 1980 book "Competitive Strategy," which named differentiation as one of three generic competitive strategies (alongside cost leadership and focus).

Differentiation typically falls into three categories. Vertical differentiation is objective quality: most customers would agree this product is better on a measurable dimension (faster, more reliable, more accurate). Horizontal differentiation is preference: customers reasonably disagree about which is better...



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Product Vision

Product Vision

A product vision is a long-horizon (3 to 10 year) statement of what a product aspires to become and the world it creates for users. It is distinct from product strategy (the medium-term plan for how to win) and product roadmap (the near-term execution sequence), and used as the directional north for every strategy and roadmap decision underneath it. It is the part of product leadership that should change least frequently and that earns the most influence over how teams behave when nobody is watching.

The shape of a useful product vision: it describes the world the product creates for its users (what becomes possible that wasn't before), not the features the product has. Famous examples that have shaped behavior at scale: Goog...



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Restricted Stock Units

Restricted Stock Units

Restricted Stock Units (RSUs) are a company promise to deliver common stock (or cash equivalent) to the employee on a future vesting or liquidity event. They are distinct from stock options (rights-to-buy at a strike price) and restricted stock (actual share ownership from grant), used heavily at late-stage private companies (often via double-trigger structure) and post-IPO public companies. It is the modern equity-compensation mechanic at companies past the seed stage where option grants would create immediate tax exposure for employees.

The mechanic of an RSU grant:

  • Grant: the company commits to deliver a specific number of shares to the employee subject to vesting (typically 4 years with a 1-year cliff) and, at pr...


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StartEngine

StartEngine

StartEngine is an equity crowdfunding platform that combines Regulation Crowdfunding (Reg CF) and Regulation A+ (Reg A+) offerings under one brand. One of the largest equity crowdfunding platforms by raise volume, it is notably itself publicly listed via its own Reg A+ offering and subsequent OTC trading, making it the rare example of a crowdfunding platform that demonstrated its own product by raising on it. StartEngine has facilitated more than $700 million in capital since founding in 2014, with the dual Reg CF + Reg A+ capability allowing startups to start with a Reg CF round and then graduate to a Reg A+ round on the same platform.

The structural distinctives: dual SEC framework support (Reg CF for raises up to $5M and Reg ...



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Lean Canvas

Lean Canvas

The Lean Canvas is a one-page business model framework by Ash Maurya, adapted from the Business Model Canvas for early-stage startups validating hypotheses pre-PMF. Its nine blocks emphasize startup-specific concepts (problem, customer segments, unique value proposition, solution, channels, revenue streams, cost structure, key metrics, unfair advantage), replacing the enterprise-oriented blocks of the original (key partnerships, key activities, key resources) with startup-relevant concepts (problem, key metrics, unfair advantage). It is the framework most widely-used by early-stage founders for documenting and iterating on hypothesis-stage business models.

The nine blocks of Lean Canvas:

Problem: top 3 problems your customers fa...



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AWS Credits For Startups

AWS Credits For Startups

AWS credits for startups are free Amazon Web Services credits from the AWS Activate program, ranging from $1,000 self-serve to $100,000+ for portfolio companies. Larger packages go to startups in partner accelerators, incubators, and venture portfolios, and the credits are used to offset cloud infrastructure costs during the early stages when usage is unpredictable. The program also includes free AWS support, training, and access to AWS experts in addition to the credit dollars.

AWS Activate distributes credits in tiered packages based on the startup's affiliations. Self-serve tier: $1,000 in AWS Activate Credits available to most early-stage startups that sign up directly. Founders tier: typically $1,000 to $5,000 ...



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Activation

Activation

Activation is the funnel stage where a new user reaches first meaningful value from a product, the moment commonly called the aha moment. It is measured as the percentage of signups who complete a defined activation event within a specified time window (for example, "imported a first contact within 24 hours of signup," "sent a first message within 7 days," "invited a teammate within 14 days"). It is the stage in the AARRR funnel between acquisition and retention, and the single most-underinvested stage in most early-stage startups.

The classic framework for defining activation is the "aha moment formula" popularized at Facebook: identify the small set of in-product actions that, when completed early, predict long-term retention, ...



Article

Unicorn

Unicorn

A unicorn is a privately-held venture-backed company valued at $1 billion or more. The term was coined by venture capitalist Aileen Lee in a 2013 TechCrunch article describing the rarity of such outcomes at the time (only 39 unicorns existed globally then), and has since become an ordinary category as the venture industry has matured. CB Insights and Crunchbase track the global unicorn population at approximately 1,200+ companies as of 2026, making it a meaningful but no longer unusual milestone, the most-recognized valuation marker in the venture industry and a useful benchmark for understanding where a company sits relative to peer outcomes.

The history and current state of unicorns:

  • 2013 origin: Aileen Lee's article "Welcome to ...


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