A/B Testing
A/B testing is about finding out how best a product works. To do so, two variants (variant A and variant B) of the same product are produced and then compared with each other and tested on customers.
Accelerator
An accelerator program for startups is designed for rapid growth. Funding programs lend financial support to a startup and offer advice and coaching for around 3 to 6 months, and usually receive company shares in return.
Advisory / Supervisory Board
An advisory board supports the managers of a company. The board’s advice is inputted in key decisions and acts as an advisory unit, often consisting of people with experience and knowledge that is particularly helpful for the startup.
Alpha Test
The first functional test of a new product is called an alpha test. It is usually tried out in a controlled environment, e.g., in a laboratory, to determine whether it works as intended. Employees are often the first users.
Anti-Dilution
Anti-dilution protects investors from dilution of their company shares. When a startup launches more shares on the market, the value of shares already sold decreases. An anti-dilution or dilution clause can be included in the investment agreement to ensure that investors are treated fairly in such a situation.
ARR - Annual Recurring Revenue
ARR is an important business management indicator. It describes the revenue that a company generates every year, e.g., from subscriptions, and provides information about the predictability of a startup's business. If a startup receives €10 per month from 100 subscribers, the ARR is €12,000.
Asset Deal
An asset deal involves the sale of a company’s assets, but not the company itself. Exits are often carried out using an asset deal. The entire startup is not sold, but only the company's assets e.g., patents, machines or technologies.