Glossary

Freemium is a business model where a company offers both complimentary (free) services and premium (paid) services. It's often used to attract an initial user base while offering additional paid features.

A fulfilment centre is a warehouse where e-commerce businesses store their inventory and from where they process and ship orders. These facilities enable online retailers to outsource warehousing and shipping, thereby focusing more on sales and marketing.

GDPR is a regulation enacted by the EU to enhance privacy protections and provide a framework for the handling of personal data. It applies to all businesses operating within the EU and those processing the data of EU citizens.

General partners (GPs) in VC funds are the individuals or entities responsible for making investment decisions and managing portfolio companies. They play an active role in the fund's operations and bear the primary fiduciary responsibility. They also typically invest their own capital into the fund.

Geo-targeting in e-commerce refers to the practice of delivering different content or adverts to consumers based on their geographic locations. This can be as broad as a country or as specific as a postcode.

A good leaver is an employee or founder who leaves a company under favourable circumstances, such as retirement, completion of a contract, or in accordance with predefined terms. Good leavers typically retain their equity or ownership rights and may be entitled to certain benefits or privileges.

Goods in transit (GIT) refers to inventory or goods that are being transported from one location to another. They're typically in transit between suppliers, warehouses, distribution centres, or retail stores, and are considered part of the company's assets until they reach their final destination.

Growth hacking is a marketing strategy focused on rapid growth. It involves experiment-driven techniques to identify the most effective ways of growing a business.

Growth rate refers to the amount a specific variable or measure has grown over a specific time, expressed as a percentage. In businesses, it can refer to measures such as revenue, earnings, customers, or even an entire economy.

A hold-harmless agreement is a legal contract between two parties that releases one party from liability for any claims, damages, or losses arising from a specific activity, transaction, or relationship. It provides protection to one party (the indemnitee) by transferring the responsibility for potential risks or legal consequences to the other party (the indemnitor). Hold-harmless agreements are commonly used during transactions when advisors share information between each others.

An impression in digital marketing refers to an instance where an ad is displayed on a webpage. It's used as a measure for the number of potential customers who had an opportunity to see the ad, regardless of whether they interacted with it.

The Information Commissioner's Office (ICO) is an independent authority in the UK responsible for upholding information rights and promoting data privacy. The ICO oversees and enforces compliance with data protection laws, such as the General Data Protection Regulation (GDPR) and the Data Protection Act 2018, to enforce the fair and lawful processing of personal data, protect individuals' privacy rights, and regulate the handling of sensitive information by organisations operating in the UK. All companies in the UK need to register with the ICO.

An IPO is when a private company offers its shares to the public for the first time. It's a way to raise capital and often serves as a stepping stone for a company to expand.

An inventory management system (IMS) is software or a system used to track and manage inventory levels, orders, and stock movements. It enables businesses to optimise inventory control, streamline procurement, monitor stock levels, and improve overall supply chain efficiency.

Inventory turnover is a ratio that shows the number of times a business has sold and replaced its inventory during a certain period. A high turnover rate indicates strong sales, while a low rate may suggest weak sales or high inventory levels.

An Investment Committee (IC) is a group of individuals within an organisation responsible for making investment decisions. The committee reviews and evaluates potential investment opportunities, conducts due diligence, and provides recommendations based on financial, strategic, and risk assessment considerations.

An investor model, also known as a cashflow forecast, is a financial projection that outlines the expected cash inflows and outflows for potential investors. It demonstrates the anticipated returns and cash flow generation of a business, helping investors evaluate the financial viability and potential risks of an investment opportunity.

A Key Performance Indicator (KPI) is a measurable value that helps assess the performance and progress of a specific aspect of a SaaS or e-commerce business in achieving its strategic objectives. KPIs provide insights into critical areas of performance and help monitor the success of business strategies. Examples of KPIs in the SaaS and e-commerce sectors include monthly recurring revenue (MRR) growth rate, customer churn rate, conversion rate, customer lifetime value (CLTV) to customer acquisition cost (CAC) ratio, and net promoter score (NPS). KPIs are selected based on their relevance to the business's goals and are used to track and guide decision-making at a strategic level.

Landed cost refers to the total price of a product once it has arrived at a buyer's doorstep. It includes the original price of the product, transportation fees, customs, duties, taxes, insurance, currency conversion, crating, handling, and payment fees, providing a comprehensive view of all expenses involved in purchasing and delivering goods.

A landing page is a standalone web page created specifically for a marketing or advertising campaign. It's where a visitor lands after clicking on a link in an email, ads from Google, YouTube, Facebook, Instagram, Twitter, or similar places on the web.

Lean Startup is a methodology for developing businesses and products based on 'validated learning', getting customer feedback quickly, and iterating on your product. The aim is to reduce market risks and sidestep the need for large amounts of initial funding.

Customer lifetime value is a metric that represents the total estimated value a customer will generate for a business over the duration of their relationship. It takes into account factors such as the customer's average purchase value, purchase frequency, and customer retention rate. In both the SaaS and e-commerce sectors, CLTV is a critical metric for understanding the long-term value of customers, informing customer acquisition strategies, and identifying opportunities for increasing customer loyalty and profitability.

Limited partners (LPs) in VC funds are passive investors who provide capital to the fund. They do not participate in the fund's day-to-day operations or investment decisions. Their liability is limited to their committed investment, and they expect returns on their investment from the fund's performance.

Liquidation preference determines the payout order in case of a corporate liquidation. It's often used in VC deals to favour investors, allowing them to recoup their investment before other shareholders.

A lookalike audience is a group of people who share characteristics with a business's existing customer base, making them more likely to be interested in the company's products or services. It's a concept used in digital marketing to target users for ad campaigns.