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Startup Basics Glossary (2025 Edition): 150 Terms Explained with African Market Examples

TL;DR: Startups have their own language, and if you’re building in Africa (Kenya, Nigeria, South Africa, or anywhere else), you’ll encounter terms from “bootstrapping” to “valuation.” This glossary breaks them down with short, simple definitions and local case snippets so you can learn fast without the jargon.

Startups in 2025 are no longer confined to Silicon Valley. From Kenya’s fintechs to Nigeria’s e-commerce giants, the language of startups is shaping how entrepreneurs pitch, scale, and succeed. This guide explains 150 startup terms in simple words with African market flavor. Here in Part 1, we cover the first set of essentials (around 1000 words). Part 2 will continue with more advanced terms, FAQs, schema markup, and geo data.

Why a Startup Glossary Matters in 2025

Imagine being in a pitch room in Nairobi and an investor asks about your CAC, runway, or exit strategy. If you hesitate, you lose credibility. Having this glossary makes you confident in conversations with mentors, peers, and investors. It’s also practical—because we link examples from African startups you already know.

Glossary: Core Startup Terms You Need to Know (A–M)

1. Accelerator

A program that helps startups grow fast by offering mentorship, seed funding, and resources in exchange for equity. Example: Nairobi’s iHub accelerator has supported early-stage AI and fintech startups across East Africa.

2. Angel Investor

An individual who invests their personal money in startups, usually in exchange for equity. Example: Nigerian angel investors backed Paystack before Stripe acquired it.

3. Bootstrapping

Building a company using personal savings or revenue instead of external funding. Example: Many Kenyan agritech startups bootstrap before approaching international VCs.

4. Burn Rate

The rate at which a startup spends cash before becoming profitable. Example: A Lagos-based mobility startup reported a $200K monthly burn rate in its early scaling phase.

5. CAC (Customer Acquisition Cost)

The total cost of acquiring a new customer, including marketing and sales expenses. Example: Jumia reduced its CAC by leveraging influencer-driven campaigns in Nigeria.

6. Churn Rate

The percentage of customers who stop using a product within a certain time frame. Example: Kenyan edtechs track churn to know how many students drop off after the free trial.

7. Convertible Note

A type of loan that converts into equity later, usually during a funding round. Example: South African fintechs raised early money using convertible notes before Series A.

8. Crowdfunding

Raising small amounts of money from a large number of people online. Example: African creatives use platforms like Kickstarter to fund design and tech projects.

9. Deal Flow

The number of investment opportunities a VC or investor sees. Example: Nigerian VCs are reporting increased deal flow in logistics startups.

10. Due Diligence

The process investors use to verify a startup’s financials, legal standing, and growth potential. Example: Flutterwave underwent due diligence before closing its mega funding rounds.

11. Exit

When founders or investors sell their stake in a company, usually via acquisition or IPO. Example: Stripe’s acquisition of Paystack is a textbook African startup exit.

12. Freemium

A business model where the basic product is free, but users pay for premium features. Example: Many Nigerian SaaS startups use freemium to attract SMEs before upselling.

13. Growth Hacking

Creative, low-cost strategies to acquire and retain users quickly. Example: A Nairobi logistics startup used WhatsApp groups as a growth hack to reach boda boda drivers.

14. Incubator

An organization that nurtures very early-stage startups with office space, mentorship, and support. Example: MEST Africa incubates startups across Ghana, Nigeria, and Kenya.

15. IPO (Initial Public Offering)

When a private company offers shares to the public for the first time. Example: No major African tech IPO has matched the global giants yet, but local exchanges are preparing frameworks.

16. MVP (Minimum Viable Product)

A basic version of a product built to test an idea and gather feedback. Example: Twiga Foods in Kenya launched an MVP connecting farmers to small vendors before scaling nationwide.

17. Pivot

When a startup changes its business model or product direction after learning from the market. Example: Nigerian edtechs pivoted to hybrid models post-COVID.

18. Runway

The amount of time a startup has before running out of money, given its burn rate. Example: A Ugandan agri-startup reported having 12 months of runway after its seed round.

19. SaaS (Software as a Service)

A model where software is hosted online and accessed via subscription. Example: South African SaaS companies serve SMEs with cloud-based accounting tools.

20. Valuation

The estimated worth of a startup based on traction, revenue, and market potential. Example: Flutterwave reached a unicorn valuation, becoming a benchmark for African fintech.

Next up in Part 2: We’ll cover terms N–Z, add schema markup, FAQs, geo schema for USA, Canada, Europe, Asia, Africa, Kenya, and Nigeria, plus more case studies and backlinks to credible sources.

👉 Continue to Part 2 of the Startup Basics Glossary 2025.