Concept / Term · Foundational

Due Diligence (DD)

The investigation before signing

What does Due Diligence (DD) mean?

The buyer's or investor's detailed examination of the business: finances, contracts, code, security, IP ownership and compliance.

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PoC / Prototype / MVPA proof of concept tests whether something is technically possible. A prototype shows how it would look and feel. An MVP is a real, working product released to actual users. They are not interchangeable.
Product-Market Fit (PMF)The point at which a product genuinely satisfies a strong market demand, usually visible through retention and organic growth rather than a single metric.
PivotChanging a core part of the business model or product while keeping what has been learned. Not the same as giving up.
TractionDemonstrable progress that investors and partners recognise: users, revenue, retention, signed contracts.
RunwayHow long the business can operate at the current spend before money runs out. The number that shapes most startup decisions.
Burn RateNet monthly cash outflow. Gross burn is total spend; net burn is spend minus income.
BootstrappedGrowing on revenue and the founders' own money rather than outside investment. Keeps full control and full risk.
Pre-seed / SeedPre-seed typically funds getting to a product; seed funds finding product-market fit.