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Churn Rate

Churn Rate

Churn rate is the percentage of customers or revenue that stop using or paying for a product over a defined period (monthly, quarterly, annually). It is measured separately as customer churn (logos lost) and revenue churn (dollars lost), and treated as the inverse of retention. It is one of the two or three numbers that determine whether a subscription business compounds or quietly dies.

There are two distinct measurements that get conflated and should not be: customer churn is logos divided by logos at start of period; revenue churn is MRR (or ARR) lost divided by MRR at start of period. A SaaS business can have low customer churn and catastrophic revenue churn if it loses its biggest accounts; the inverse is true at the SMB tie...



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Lead Scoring

Lead Scoring

Lead scoring is the automated method of ranking leads by their likelihood to convert into customers. It combines two main inputs: demographic fit (how closely the lead matches the Ideal Customer Profile and Buyer Persona) and behavioral signals (which actions the lead has taken, website visits, content downloads, demo requests, email engagement). The combined score determines whether a lead crosses the threshold to become a Marketing Qualified Lead (MQL). It's the mechanism that operationalizes the MQL handoff to sales.

The two scoring dimensions:

Demographic / firmographic score (who the lead is):

  • Job title alignment with buyer persona (+10 to +30 points for ICP titles).
  • Company size in target range (+5 to +15 points).
  • Indust...


Article

Capital Gains

Capital Gains

Capital gains are the profit realized when a capital asset is sold for more than its cost basis. They are taxed at preferential long-term rates when held over one year and at ordinary income rates when held one year or less. Capital assets include startup equity, stock options after exercise, and shares received in an exit. For startup founders and early employees, capital gains tax is the dominant tax category at exit, and the difference between short-term and long-term treatment can be 20 percentage points or more on every dollar of proceeds.

The federal long-term capital gains (LTCG) rate schedule for 2025: 0 percent on gains below the lower threshold (roughly $47K single, $94K married filing jointly); 15 percent on gains i...



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VP Marketing

VP Marketing

The VP of Marketing is the senior executive responsible for marketing strategy, demand generation, brand, product marketing, content, growth, partnerships, and external communications. Sometimes called CMO at scale or Head of Marketing at smaller scale. Demand generation drives qualified leads or users to the company; brand building establishes the company's identity and positioning; product marketing handles positioning and messaging the product. The specific scope varies dramatically by company type (B2B SaaS VP-M is dramatically different from consumer brand VP-M, which is dramatically different from enterprise VP-M), making the hiring process particularly tricky because VPs with experience in one context often don't transla...



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Founder Vesting

Founder Vesting

Founder vesting is the schedule on which a startup's founders earn their own founder common stock over time. Unvested shares can be repurchased by the company if a founder leaves before the schedule is complete. The startup standard is four years with a one-year cliff, often re-set or modified at the first priced round at the new investor's request.

In practice, founders are issued their stock as restricted stock at or near incorporation and the company holds a repurchase right over the unvested portion. If a founder departs before the cliff, the company can buy back the full grant at the original purchase price (often near zero). After the cliff, the company can repurchase only the unvested remainder. At the first priced ro...



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CEO and Founder

CEO and Founder

CEO and Founder vs Founder vs Co-founder: This entry is about the title combination, when one person holds both roles, when to split them, and how the transitions go. For the origin-role definition (who counts as a founder, how the title attaches), read [Founder]. For the team-dynamics nuance (when multiple people share founder status, how the term gets misused), read [Co-founder].

CEO and founder are two distinct roles often held by the same person early on: the founder originated the company, the CEO currently runs it. At a startup's earliest stage these collapse into one person by default, but the two roles can separate at any point, and many companies are run successfully by a non-founder CEO.

Three common transitions ...



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Early Stage

Early Stage

Early stage refers to the phase of startup development from formation through Series A and early Series B, when product-market fit is the central goal. It is characterized by small teams (typically 1-50 employees), limited or no revenue (often under $5-10M ARR), high uncertainty about the business model and addressable market, outsized founder influence on every operational decision, and venture capital invested at pre-revenue or early-revenue stages with extended runway-to-exit timelines (typically 7-10+ years). It is the most distinctive phase of a venture-backed company's life and the phase where the founders' specific role (chief decision-maker, chief storyteller, chief recruiter, chief everything-else) is fundamentally diff...



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Mutual NDA

Mutual NDA

A mutual NDA is a confidentiality agreement where both parties agree to protect each other's confidential information. Also called bilateral NDA or two-way NDA, it is distinct from unilateral (one-way) NDAs where only one party's information is protected. Mutual NDAs are used commonly in commercial partnerships, M&A discussions, joint venture explorations, and other situations where both sides share sensitive information. It's the structural choice when both parties have something to protect.

The two NDA structures:

Unilateral / one-way NDA:

  • One party shares information; only that party's information is protected.
  • Common when company shares info with potential vendor, employee, or service provider.
  • One-sided obligation.

Mu...



Article

Pricing Strategy

Pricing Strategy

Pricing strategy is the deliberate approach a company takes to setting prices. It includes the pricing model (per-seat, usage-based, tiered, flat), positioning relative to alternatives (premium, value, low-cost), price points and packaging, discount and contract policies, and pricing changes over time. The discipline is one of the highest-leverage growth moves available (a 10% price increase often produces 10%+ revenue with minimal cost) and one of the most-underutilized at startups because pricing changes feel risky. Most startups under-price; pricing increases are typically the lowest-cost growth investment available.

The pricing model options:

Per-seat / per-user: charge per active user. Classic SaaS model. Predictable r...



Article

Founder Clawback

Founder Clawback

A founder clawback is the contractual provision allowing the company to reclaim a founder's vested equity under defined trigger events. Trigger events typically include termination for cause, breach of restrictive covenants, fraud, or material misconduct, with reclamation structured as a forced repurchase at a defined price (often original purchase price), representing an aggressive expansion of standard vesting and repurchase rights. It is the most punitive of the founder-control mechanisms and a provision that signals an unusually aggressive negotiating posture by investors.

The standard structure of a founder clawback:

  • Trigger events: typically defined narrowly to include termination for cause (fraud, willful misconduct...


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