Tech Glossary

Agile is a project management and software development methodology emphasizing iterative development, collaboration, flexibility, and continuous improvement. Agile teams work in short cycles (sprints), deliver working software frequently, and adapt quickly to changing requirements.

An API (Application Programming Interface) is a set of protocols, tools, and definitions that allow different software applications to communicate with each other. APIs define how requests and responses should be formatted, enabling developers to integrate external services and data.

Artificial Intelligence (AI) refers to computer systems designed to perform tasks that typically require human intelligence. These tasks include learning, reasoning, problem-solving, perception, and language understanding. AI enables machines to adapt and improve through experience.

Bootstrapping is the practice of building and growing a company using personal savings, revenue, and minimal external resources. Bootstrapped founders retain full ownership and control while growing organically without venture capital or outside investors.

Conversion rate is the percentage of users who complete a desired action out of the total number of visitors or users. Common conversions include purchases, sign-ups, downloads, or any other goal that indicates user engagement or revenue.

Customer Acquisition Cost (CAC) is the total cost of acquiring a new customer, including marketing, sales, and related expenses. It's calculated by dividing total acquisition spending by the number of new customers gained in that period.

Equity represents ownership in a company, typically expressed as shares or percentage ownership. In startups, equity is used to compensate founders, employees, and investors. Equity holders share in the company's success (or failure) and may receive dividends or proceeds from a sale.

Growth hacking is a marketing approach focused on rapid experimentation across marketing channels and product development to identify the most effective ways to grow a business. Growth hackers prioritize creative, low-cost alternatives to traditional marketing.

A Large Language Model (LLM) is an AI system trained on massive text datasets to understand and generate human-like text. LLMs use deep learning architectures, particularly transformers, to process and produce language for tasks like conversation, writing, coding, and analysis.

Lifetime Value (LTV), also called Customer Lifetime Value (CLV), is the total revenue a business can expect from a single customer account over their entire relationship. LTV helps companies understand how much they can afford to spend on customer acquisition.

Machine Learning (ML) is a subset of artificial intelligence that enables systems to automatically learn and improve from experience without being explicitly programmed. ML algorithms build mathematical models based on training data to make predictions or decisions.

A Minimum Viable Product (MVP) is the simplest version of a product that can be released to validate a business idea with real users. It contains only the core features necessary to solve the primary problem and gather meaningful feedback for future development.

No-code refers to software development platforms that allow users to create applications without writing traditional programming code. Using visual interfaces, drag-and-drop builders, and pre-built components, non-technical users can build websites, apps, and automations.

A pivot is a strategic shift in a startup's business model, product, target market, or core offering based on learnings from the market. Pivoting involves keeping what works while fundamentally changing the approach to find product-market fit.

Product-Market Fit (PMF) is the point at which a product satisfies strong market demand. It occurs when customers are actively seeking, buying, and recommending your product because it solves their problem better than alternatives.

Prompt Engineering is the practice of designing and optimizing text inputs (prompts) to get desired outputs from AI language models. It involves crafting clear instructions, providing context, and structuring requests to maximize the accuracy and usefulness of AI-generated responses.

Runway is the amount of time a startup can continue operating before running out of money. It's calculated by dividing current cash by monthly burn rate. Runway determines how long founders have to achieve key milestones before needing additional funding.

SaaS (Software as a Service) is a cloud-based software delivery model where applications are hosted by a provider and accessed by customers via the internet, typically through a subscription. Users don't install or maintain software; they simply log in and use it.

Technical debt is the implied cost of future rework caused by choosing quick, easy solutions over better approaches that would take longer. Like financial debt, technical debt accumulates interest over time, making future development slower and more expensive.

Venture Capital (VC) is a form of private equity financing provided by investment firms to startups and early-stage companies with high growth potential. VCs invest money in exchange for equity ownership and typically seek significant returns through exits (acquisition or IPO).