ARR (Annual Recurring Revenue)
Startup BasicsARR is the yearly value of a subscription business's recurring revenue — its monthly recurring revenue multiplied by twelve.
Plain-English definitions of startup, funding, AI, and tech terms — with Philippine examples where possible.
ARR is the yearly value of a subscription business's recurring revenue — its monthly recurring revenue multiplied by twelve.
Bootstrapping means growing a company using only personal savings and its own revenue, without raising money from outside investors.
Burn rate is how quickly a startup spends its cash each month, usually spending more than it earns while it's still growing.
CAC is the total amount a company spends on sales and marketing to acquire one new paying customer, on average.
Churn is the rate at which customers stop using or paying for a product over a given period, usually measured monthly.
A co-founder is one of two or more people who start a company together from the very beginning, sharing ownership, risk, and major decisions.
A founder is the person who starts a company, taking on the early risk of turning an idea into a working business before anyone else believes in it.
LTV is the total revenue a business expects to earn from a single customer for as long as that customer keeps buying or paying.
MRR is the predictable revenue a subscription business collects every month from its currently active paying customers.
An MVP is the simplest version of a product a startup can build and release to learn whether real users actually want it, before investing more.
A pivot is when a startup makes a fundamental change to its product, business model, or target customer based on what it has learned.
Product-market fit is the point when a product finally satisfies real demand — customers keep using it, pay for it, and tell others unasked.