Unit economics is a powerful tool that can help to understand, and even predict, a company’s success and future viability. Unit economics describe the earnings and spendings of a company – not in total, however, but with reference to individually identifiable units.
A value proposition is a promise that summarizes all usage and value benefits that your product poses for potential customers. In the New Economy with its digital transformation boost and excessive job offers, company purpose becomes ever more relevant. Which is why it’s tantamount to precisely define what your startup stands for and why customers should buy your solution.
Venture capital refers to part of the private equity sector where private equity firms invest into a not-publicly traded company and share in their profits. In this context, venture capital is a time-limited equity capital investment into a young, innovative, and often technologically-oriented company that is still growing (and not yet publicly traded) – startups, basically.
Once investors have decided to support a startup financially, they have a “vested” interest to keep specific team members and especially the founders in the company. One method to ensure this outcome is called “vesting”. Agreements that specifiy that a person receives company stock options contingent upon them staying with the company are called vesting clauses. Accordingly, the period during which the vesting clause remains in force is called the vesting period.