Resources / In Plain English

    In Plain English

    Finance, metrics, and investor language translated into plain English. Five themed glossaries — the top terms on-page, with full versions available to download.

    Glossaries Available

    Financial Foundation Metrics

    The core numbers every founder needs to understand — cash position, margins, and operating costs explained simply.

    Jump to glossary

    SaaS & AI KPIs

    The metrics investors and boards expect you to know — recurring revenue, retention, acquisition, and AI-specific cost structures. Two companion glossaries: one for SaaS, one for AI.

    Jump to glossary

    Investor Language

    The terminology used in term sheets, SAFEs, and cap tables — decoded for founders navigating fundraising.

    Jump to glossary

    Governance Terms

    Board-level concepts every founder should understand — fiduciary duty, risk frameworks, and ESG vs impact.

    Jump to glossary

    Financial Foundation Metrics

    The core numbers every founder needs to understand — cash position, margins, and operating costs explained simply.

    RunwayHow many months you can keep operating before cash runs out, calculated as cash on hand divided by net monthly burn. The single most important survival metric for any pre-profit business.
    Burn RateThe pace at which the company consumes cash each month. Gross burn is total cash out; net burn is cash out minus cash in — investors care about both.
    Gross MarginRevenue minus the direct cost of delivering it, expressed as a percentage. Tells you whether the underlying business model can ever be profitable at scale.
    Operating ExpensesThe cost of running the business beyond cost of goods sold — salaries, software, rent, marketing. Where most discretionary control over burn actually sits.
    Working CapitalThe cash tied up in the day-to-day cycle of receivables, payables and inventory. Poor working capital management can sink an otherwise profitable business.

    Download the full glossary

    SaaS & AI KPIs

    The metrics investors and boards expect you to know — recurring revenue, retention, acquisition, and AI-specific cost structures. Two companion glossaries: one for SaaS, one for AI.

    MRR / ARRMonthly and annualised recurring revenue from active subscriptions. The clearest signal of predictable demand and the foundation of any SaaS valuation.
    NRRNet Revenue Retention — revenue from existing customers a year later, including expansions, contractions and churn. Above 110% means the base grows even without new logos.
    GRRGross Revenue Retention — revenue retained from existing customers excluding upsell. The honest measure of how sticky the product really is.
    CACFully loaded cost to acquire one paying customer, including sales, marketing and tooling. Only meaningful when paired with payback period and LTV.
    LTVTotal gross-margin revenue expected from a customer over their lifetime. The North Star for unit economics — and frequently overstated.

    Download the full glossary

    Investor Language

    The terminology used in term sheets, SAFEs, and cap tables — decoded for founders navigating fundraising.

    DilutionThe reduction in your ownership percentage when new shares are issued. Often felt most acutely in the round after the one founders thought was the big one.
    SAFESimple Agreement for Future Equity — a fast, low-cost instrument that converts into shares at the next priced round. Cheap to sign, expensive if stacked carelessly.
    Valuation CapThe maximum company valuation at which a SAFE or convertible note will convert into equity. Effectively sets the floor on early investor ownership.
    Pre / Post-MoneyPre-money is the company's value before new investment; post-money adds the new cash in. The same headline number means very different ownership outcomes.
    Preference StackThe order in which investors get paid in an exit before common shareholders see a dollar. A heavy stack can quietly wipe out founder economics.

    Download the full glossary

    Governance Terms

    Board-level concepts every founder should understand — fiduciary duty, risk frameworks, and ESG vs impact.

    Fiduciary DutyThe legal obligation of directors to act in good faith, with care, and in the best interests of the company and its shareholders. Personal — not delegable.
    Board CompositionThe mix of executive, investor and independent directors and the skills they bring. The right composition changes as the company moves from seed to scale.
    Risk AppetiteThe level and type of risk the board is willing to accept in pursuit of strategy. A clear appetite makes day-to-day decisions faster and safer.
    D&O InsuranceDirectors and Officers liability cover that protects board members personally against claims arising from their decisions. Effectively non-negotiable for outside directors.

    Download the full glossary