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Glossary

Early Adopters

Early adopters are particularly quick to use new technologies and products. These people are usually very enthusiastic about technological innovations and are particularly interesting for startups as they may get excited about a new application faster than others.

Early Stage

The early stage is the phase in which the product is further developed until it is ready for the market. Financing in this phase through equity investments or startup funds is used to build up the company, marketing or necessary testing or authorization costs.

Earn Out

The purchase price of a company is split over time as part of an earn-out. That lowers the risk of the purchase. If the startup is worth less later, the sales price is also reduced.

EBIDA

Earnings Before Interest, Taxes, Depreciation and Amortisation (EBIDA) is a measure of the operating performance of a startup company.

Elevator Pitch

When a presentation is so short and to the point that a lift ride is enough to deliver it, it is called an elevator pitch. In terms of content, it sums up a startup's business concept in a very concise manner.

Evangelist

A (chief) evangelist represents a startup or its technology. Like the religious equivalent, evangelists try to convince the public of a product by appearing at events or promoting the startup's offer on social media.

Evergreen Fund

An evergreen fund is a hybrid investment structure that combines elements of open-ended and closed-ended funds. Such funds have no fixed term and offer investors more flexibility to enter and exit, typically through regular subscription and redemption windows. Evergreen funds provide immediate and ongoing exposure to private companies, with invested capital and distributions typically reinvested.

Exit

An entire startup is sold during an exit. Many founders seek a successful exit to start a new business. There are several exit strategies. The company can be acquired by another company or go public.

Exploding Offer

An exploding offer is a means of increasing sales figures for a limited period. A product is offered at a discounted price for a certain period. A countdown is often used to show how long the discount will last, giving customers the impression that they need to act quickly.

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