Startup Glossary: Letter "T"
Explore definitions, key metrics, legal terms, and financing mechanics shaping the startup ecosystem.
T
Tag-Along Rights
Tag-Along Rights (co-sale rights) are legal protections for minority shareholders that allow them to join in a transaction if a majority shareholder sells their stake.
TAM
TAM (Total Addressable Market) is the total market demand or revenue opportunity available for a product or service if 100% market share is achieved.
Technical Debt
Technical Debt is the long-term cost of choosing a quick, easy, or unscalable software development solution today instead of a better, comprehensive approach.
Term Sheet
A Term Sheet is a non-binding agreement that outlines the key financial and legal terms of a proposed investment round.
Tier-Based Pricing
Tier-Based Pricing is a monetization model offering different packages (tiers) at different price points, based on feature access, seats, or usage limits.
Time to Value
Time to Value (TTV) is the duration of time required for a new customer to experience product value after signing up or purchasing.
Top-Down Forecasting
Top-Down Forecasting is a projection method that estimates future revenue by taking a percentage of the Total Addressable Market.
Total Contract Value
Total Contract Value (TCV) is the total revenue value of a customer contract across its entire duration, including one-time fees.
Total Value to Paid-In Capital
Total Value to Paid-In Capital (TVPI) is a performance metric for venture capital funds that measures the total value (realized returns + paper value) relative to the amount of capital paid in by investors.
Traction
Traction is concrete evidence of customer demand and product adoption, typically demonstrated through revenue growth, active user counts, or key pilot partnerships.
TVPI Ratio
The TVPI Ratio is a venture performance metric measuring the total value (realized cash returns + paper value) relative to the capital paid in by investors.