Startup Glossary: Letter "C"

CAC (Customer Acquisition Cost) is the total cost required to acquire a new customer, including all sales and marketing expenses.

A Cap Table (Capitalization Table) is a detailed spreadsheet or ledger that outlines a startup's equity ownership structure.

A Capital Call (or drawdown) is the process by which a venture capital firm requests its Limited Partners to transfer a portion of their committed capital to fund an investment or cover fees.

Carried Interest (or carry) is a share of the profits of a venture capital fund that is paid to the fund managers (GPs) as performance compensation.

Churn Rate is the percentage of customers or subscription revenue that a startup loses over a specified period.

A Clawback Provision is a legal clause in a venture capital fund agreement requiring the fund managers (GPs) to return excess carried interest if subsequent investments underperform.

A Cliff is a specific period at the beginning of a vesting schedule during which no equity is earned.

Cohort Analysis is the study of customer groups who share common characteristics (such as signup date) to track behavior and retention trends over time.

A Convertible Note is a debt instrument that converts into equity at a future date, typically in connection with a priced funding round.

Corporate Venture Capital (CVC) is the practice of large companies investing corporate funds directly into startup companies, often for strategic or synergy-driven goals.

A Cram Down is an extreme down round where the startup's valuation is reduced so severely that the ownership stakes of previous investors and founders are heavily diluted or practically wiped out.

Customer Retention Rate (CRR) measures the percentage of active customers a startup maintains over a specific period, showing customer loyalty.