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Startup Investment

Startup Investment

Startup investment is the deployment of capital into early-stage private companies in exchange for equity. It is viewed simultaneously from two perspectives: the founder side is raising the capital to build and scale the company; the investor side is allocating to a high-risk, high-variance asset class with the expectation of outsized returns from a small minority of investments. It is the broader frame that contains both startup funding (the founder-side activity) and the private-investor categories (angels, VCs, family offices, corporate venture) that supply the capital.

The math of startup investment is governed by a power-law distribution that shapes every decision in the asset class. Across a portfolio of venture-bac...



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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 buy ...



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Design System

Design System

A design system is a unified, documented library of reusable UI components, design tokens, and patterns that ensures visual and behavioral consistency across a product. Components include buttons, inputs, modals, and cards; tokens cover color, typography, and spacing values; patterns include interaction conventions and accessibility standards. It is typically delivered as both a Figma component library for designers and a code package (React, Vue, Web Components) for engineers. It is the infrastructure layer underneath product UI work and the difference between a company that ships a consistent product across surfaces and one that ships a fragmented patchwork.

The major public design systems set the modern standard: Material D...



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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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Non-Qualified Stock Option

Non-Qualified Stock Option

A Non-Qualified Stock Option (NSO) is a stock option that does not qualify for ISO tax treatment under IRC Section 422. It is taxed as ordinary income on the bargain element (FMV at exercise minus strike price) at exercise, with subsequent appreciation treated as capital gain on sale, and granted broadly to employees above the ISO cap, contractors, board members, advisors, and consultants who aren't W-2 employees. It is the workhorse option type for non-employee grants and for employee grants exceeding the $100,000 ISO annual cap.

The NSO mechanic and the tax rules:

  • Grant: company grants NSO with strike price equal to fair market value at grant (per 409A valuation, required by Section 409A to avoid penalty taxes)...


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General Partner

General Partner

A General Partner (GP) is the VC firm itself (or its managing entity, typically structured as an LLC) that runs a venture fund. The GP makes investment decisions, manages portfolio companies, and earns management fees plus carried interest on fund profits. This stands in contrast to Limited Partners (LPs) who provide capital but don't manage, with GPs bearing full operational responsibility for fund performance and unlimited legal liability for fund obligations. The GP is the "VC" that founders interact with day-to-day; the GP is also the entity LPs hold accountable for fund returns.

The GP organizational structure: a VC firm is typically organized as a management company (the LLC that employs the partners and operates the f...



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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...


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User Interface

User Interface

User interface (UI) is the visual and interactive layer through which a user controls a product, distinct from the broader user experience the interface creates. UI includes layout, typography, color, controls (buttons, fields, menus), iconography, visual hierarchy, motion, and microinteractions. It is what the user actually sees and touches, while UX is everything they feel and accomplish.

The components of UI design cluster into several categories: layout and grid (how elements are arranged spatially), typography (typeface, weight, size, line height, the hierarchy of text), color (palette, contrast, semantic use of color for states like error/success), controls and components (buttons, inputs, dropdowns, toggles, sliders), ...



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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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