Startup Glossary: Letter "O"
Explore definitions, key metrics, legal terms, and financing mechanics shaping the startup ecosystem.
O
Operating Cash Flow
Operating Cash Flow (OCF) is the amount of cash generated by a startup's core business operations, excluding investing and financing activities.
Operating Expenditure
Operating Expenditure (OpEx) represents the ongoing, daily cash costs required to run a startup's business operations, excluding COGS.
Operating Income
Operating Income is the profit generated from a startup's core business operations, calculated as Gross Profit minus Operating Expenditures.
Operating Leverage
Operating Leverage is a metric measuring how a change in revenue affects a startup's operating income, indicating business scalability.
Operating Partner
An Operating Partner is a venture capital firm executive who focused on providing post-investment operational support, recruitment, and scaling guidance to portfolio companies.
Option Exercise
Option Exercise is the action where an option holder purchases shares of common stock at the strike price specified in their grant.
Option Pool
An Option Pool is a block of common stock reserved by a startup to recruit and incentivize future employees, advisors, and key contributors.