ExpansionHub

CPI

Cost per Install

SEO

Search engine optimization is a methodology of strategies, techniques and tactics used to increase the amount of visitors to a website by obtaining a high-ranking placement in the search results page of a search engine (SERP) -- including Google, Bing, Yahoo and other search engines.

Post-Money

the value of your company after the investor put the money in

Pre-Money

the value of your company before an investor puts money in

Series A Financing

The first round of financing undergone for a new business venture after seed capital. Generally, this is the first time that company ownership is offered to external investors. Series A financing may be provided in the form of preferred stock and may offer anti-dilution provisions in the event that further financing through preferred or common stock occurs in the future.

Seed Capital

The initial capital used to start a business. Seed capital often comes from the company founders' personal assets or from friends and family. The amount of money is usually relatively small because the business is still in the idea or conceptual stage. Such a venture is generally at a pre-revenue stage and seed capital is needed for research & development, to cover initial operating expenses until a product or service can start generating revenue, and to attract the attention of venture capitalists.

Click-Through Rate (CTR)

The percentage of individuals viewing a web page who click on a specific advertisement that appears on the page. Click-through rate measures how successful an ad has been in capturing users' interest. The higher the click-through rate, the more successful the ad has been in generating interest. A high click-through rate can help a website owner support the site through advertising dollars. Because Internet users have become desensitized to ads on web pages, a typical click-through rate is only about two to three users per 1,000.

CPM

The price of 1,000 advertisement impressions on one webpage. If a website publisher charges $2 CPM, that means an advertiser must pay $2 for every 1,000 impressions of its ad. The "M" in CPM represents the roman numeral for 1,000. CPM is the most common method for pricing web ads. However, an advertisement's success cannot be measured by CTR alone, because an ad that is viewed but not clicked on may still have an impact.

Comparable Transaction

A comparable transaction is a method of valuing a company that is for sale. Comparable transactions considers the past sales of similar companies as well as the market value of publicly traded firms that have an equivalent business model to the company being valued. To get a more accurate valuation, more than one comparable transaction should be used. This method of valuation can help identify the current value and potential growth for a company.

CPC

A cost per click (CPC) is a method websites use to bill by the number of times a visitor clicks on a banner instead of by the number of impressions. Cost per click is often used when advertisers have a set daily budget. When the advertiser's budget is hit, the ad is removed from the rotation for the remainder of the period.

black hat SEO

In search engine optimization (SEO) terminology, black hat SEO refers to the use of aggressive SEO strategies, techniques and tactics that focus only on search engines and not a human audience, and usually does not obey search engines guidelines. Some examples of black hat SEO techniques include keyword stuffing, invisible text, doorway pages, adding unrelated keywords to the page content or page swapping (changing the webpage entirely after it has been ranked by search engines Black hat SEO is more frequently used by those who are looking for a quick financial return on their Web site, rather than a long-term investment on their Web site. Black hat SEO can possibly result in your Web site being banned from a search engine, however since the focus is usually on quick high return business models, most experts who use Black Hat SEO tactics consider being banned from search engines a somewhat irrelevant risk.

white hat SEO

In search engine optimization (SEO) terminology, white hat SEO refers to the usage of optimization strategies, techniques and tactics that focus on a human audience opposed to search engines and completely follows search engine rules and policies. For example, a website that is optimized for search engines, yet focuses on relevancy and organic ranking is considered to be optimized using White Hat SEO practices. Some examples of White Hat SEO techniques include using keywords and keyword analysis, backlinking, link building to improve link popularity, and writing content for human readers. White Hat SEO is more frequently used by those who intend to make a long-term investment on their website. Also called Ethical SEO.

Organic SEO

Organic SEO (search engine optimization) is the phrase used to describe processes to obtain a natural placement on organic search engine results pages (SERPs). Some examples of techniques used for organic SEO include using keywords and keyword analysis, backlinking, link building to improve link popularity, and writing content relevant for human readers.

SEM

SEM is short for search engine marketing. SEM is a type of Internet marketing associated with the researching, submitting and positioning of a website within search engines to achieve maximum visibility and increase your share of paid and/or organic traffic referrals from search engines. SEM involves things such as search engine optimization (SEO), keyword research, competitive analysis, paid listings and other search engine services that will increase search traffic to your site.

Inbound Marketing

Since 2006, inbound marketing has been the most effective marketing method for doing business online. Instead of the old outbound marketing methods of buying ads, buying email lists, and praying for leads, inbound marketing focuses on creating quality content that pulls people toward your company and product, where they naturally want to be. By aligning the content you publish with your customer's interests, you naturally attract inbound traffic that you can then convert, close, and delight over time.

Cash on Cash Multiple

the multiple of money returned to an investor on exit divided by the amount they put in throughout the lifetime of the company