Go to Canaree
All Collections
Glossary
Glossary
Those tricky finance abbreviations and fundraising lingo explained
19 articles in this collection
Written by
John Brett
Unit Economics
What are 'Unit Economics'?
Unit economics are the P&L of a business reduced to a per unit basis. A unit is the fundamental driver of your business model.
Written by
John Brett
Updated over a week ago
What is 'CAC payback'?
CAC payback is the number of months it takes to pay off the cost of acquiring a customer and to start making a profit from that customer.
Written by
John Brett
Updated over a week ago
What is 'LTV:CAC'?
LTV:CAC ratio is a measure of profitability per customer.
Written by
John Brett
Updated over a week ago
What is 'ARPU'?
The average revenue per unit/user/customer per month.
Written by
John Brett
Updated over a week ago
What is 'LTV'?
Lifetime value (LTV) is the profit that you generate over the life of your customer's relationship with your business.
Written by
John Brett
Updated over a week ago
What is 'CAC'?
Customer acquisition cost (CAC) is the amount of money that you spend on sales and marketing to acquire a customer.
Written by
John Brett
Updated over a week ago
What is 'churn'?
Churn rate is a measure of the number of individuals or items moving out of a collective group over a specific period
Written by
John Brett
Updated over a week ago
Fundraising lingo
Post- & Pre-Money Valuation
Describes the company's price before and after an investment
Written by
John Brett
Updated over a week ago
Cashout
The point in time where cash exceeds the initial investment value
Written by
John Brett
Updated over a week ago
Break-even
Break-even is the point of balance where your business is making neither a profit nor a loss.
Written by
John Brett
Updated over a week ago
What is 'MRR'?
Monthly Recurring Revenue is revenue that is likely to continue to be generated regularly for a significant period of time
Written by
John Brett
Updated over a week ago
What is 'ARR'?
Annual Recurring Revenue is revenue that is likely to continue to be generated regularly for a significant period of time
Written by
John Brett
Updated over a week ago
What is 'burn rate'?
Burn rate is the company's total expenses and team costs as monthly average.
Written by
John Brett
Updated over a week ago
What is 'runway'?
Runway describes how many months you have left where you’re able to cover all your costs.
Written by
John Brett
Updated over a week ago
P&L + Balance Sheet terms
What is AOV?
Average Order Value
Written by
John Brett
Updated over a week ago
Revenue
Revenue is the income that a business has from its normal business activities, usually from the sale of goods and services,
Written by
John Brett
Updated over a week ago
What is 'Gross Margin'?
Gross margin is a company's net sales revenue minus its cost of goods sold (COGS)
Written by
John Brett
Updated over a week ago
What is 'Gross Profit'?
Written by
John Brett
Updated over a week ago
What is 'COGS' or 'COS'?
Cost of Goods Sold refers to the direct costs of producing the goods sold by a company.
Written by
John Brett
Updated over a week ago