Startup Glossary: MVP, SaaS, No-Code and Lean Startup Terms Explained
Launching a startup can feel overwhelming — especially with all the technical jargon floating around. Here's a simple glossary of key terms every non-technical founder should know before building an MVP.
Startup & Founder Essentials
MVP (Minimum Viable Product)
A basic, usable version of a product built to validate demand with minimal resources. MVPs are essential for startups to test real market interest fast.
Lean Startup
A startup methodology focused on building quickly, validating early, and iterating based on user feedback rather than assumptions.
Pivot
A significant change in a startup’s product, business model, or strategy based on validated learning. Pivots are common after early user feedback.
Bootstrap
Building and growing a startup using personal funds or business revenue without external venture capital.
Burn Rate
The speed at which a startup spends its available cash reserves, critical to calculating runway.
Runway
How many months a startup can operate at its current burn rate before running out of cash.
Pre-Seed Funding
The earliest stage of fundraising, typically from friends, family, or angel investors to validate an idea.
Seed Funding
The first significant capital raised to build an MVP, validate product-market fit, or gain initial traction.
Series A Funding
A larger fundraising round used to scale after achieving product-market fit, typically from venture capital firms.
Startup Valuation
The estimated market value of a startup based on future potential, team, traction, and growth opportunities.
MVP Building & Product Development
No-Code
Platforms allowing founders to build apps, websites, and workflows visually without coding. Ideal for fast MVP development.
Low-Code
Platforms that combine visual development with minimal coding to accelerate app building while allowing flexibility.
Wireframe
A basic visual outline of a product’s interface, helping teams plan user flows before detailed design work.
Prototype
An interactive mockup or demo version of a product used for early user testing and validation.
Product Backlog
A prioritized list of features, bug fixes, and tasks that guide MVP and future product development.
Feature Creep
The uncontrolled addition of features during development, leading to delays, complexity, and wasted resources.
User Onboarding
The process that guides new users through a product’s core value quickly and smoothly, critical for retention.
Landing Page
A focused single-page website designed to convert visitors into leads, signups, or customers for early validation.
Private Beta
An early, limited release of a product to selected users for feedback before public launch.
Public Beta
A broader release of a nearly-complete product to gather large-scale feedback and fix major issues pre-launch.
Growth Metrics & SaaS Terms
SaaS (Software as a Service)
A model where software is accessed via subscription through the cloud, popular for MVP and startup launches.
ARR (Annual Recurring Revenue)
The predictable yearly revenue generated from SaaS subscription customers.
MRR (Monthly Recurring Revenue)
The monthly version of recurring revenue from active SaaS subscribers.
Churn Rate
The percentage of customers who cancel or leave a service over a specific time period. Lower churn means stronger retention.
Customer Acquisition Cost (CAC)
The total cost required to acquire a new customer, critical for startup unit economics.
Customer Lifetime Value (LTV)
The total revenue expected from a customer over their relationship with a startup. LTV must exceed CAC for sustainability.
Activation Rate
The percentage of new users who complete a key action that shows product value shortly after signing up.
Retention Rate
The percentage of users who continue using a product over time — a key metric for SaaS success.
Freemium Model
A pricing strategy offering basic services for free while charging for advanced features.
Trial-to-Paid Conversion
The percentage of users who upgrade from a free trial to a paid subscription — a vital SaaS metric.
Startup Operations & Technology Terms
Agile Development
A flexible software development approach focused on short iterations, frequent releases, and continuous improvement.
API (Application Programming Interface)
A system that allows two apps to communicate with each other, vital for SaaS integrations.
Serverless
A cloud computing model where infrastructure management is handled automatically, allowing startups to focus on code.
Edge Functions
Serverless functions executed closer to the user to reduce latency, often used in modern web apps.
Backend
The server-side systems of an app responsible for data storage, security, and logic behind the scenes.
Frontend
The client-facing side of an app — everything users interact with, including UI and UX design.
Web App
A software application that runs in a web browser, often used for SaaS MVPs to reach users easily.
Tech Stack
The combination of frontend, backend, database, and hosting technologies chosen to build a product.
Deployment
The process of releasing code updates to a live server where users can interact with them.
CDN (Content Delivery Network)
A network of servers that deliver web content faster by placing copies closer to users.
Startup Marketing & Launch Terms
Launch Strategy
The planned activities for introducing a product to the market, collecting early user feedback, and iterating.
Pre-Launch Campaign
Marketing activities done before an official product launch to build anticipation and capture early users.
Growth Hacking
Creative, low-cost strategies for rapid startup growth, often using product features themselves to drive virality.
Viral Coefficient
The number of new users each existing user brings in — a key metric for product virality.
Organic Growth
User acquisition without paid advertising, often driven by content marketing, SEO, and word-of-mouth.
Paid Acquisition
Acquiring customers via paid ads across Google, Facebook, LinkedIn, and other channels.
Content Marketing
Creating valuable blogs, videos, or guides to attract and nurture potential customers organically.
SEO (Search Engine Optimization)
The process of optimizing website content to rank higher in Google search results and drive free traffic.
Call to Action (CTA)
A clear request or button encouraging users to take a specific action like signing up or booking a call.
Conversion Rate Optimization (CRO)
The process of improving website or app experiences to increase the percentage of users who take desired actions.