If you have watched any of the Shark Tank India episodes, you would know what it is to be there. Batting questions, understanding the requirements of Shark Tank, and letting the judges and the world watching the show know all about one’s business. Have you ever imagined being a participant in one of the episodes? Doesn’t it seem thrilling, and inspiring with all the enthusiasm, ideas, solutions, and dreams?
However, what comes along with this is the heard and unheard-of business terms which could also make it difficult to participate in or even understand business ideas in Shark Tank India. How do you feel about that?
Shark Tank, an engaging series on entrepreneurship, is full of ideas and unique business terms showcasing driven entrepreneurs beaming with futuristic ideas and hope. To understand what a successful business from Shark Tank India is or business ideas in Shark Tank, here are jargons to decode. Maybe one, two or more of these could help you with your business and understand the different participant stories on the show.
Business & Investment Terms from Shark Tank India
Investment & Funding Terms
When getting to know about business terms, especially those that you’ve heard on Shark Tank India success stories, it’s great to go phase-wise. Let’s begin with startup funding basics. This will help you understand all the Shark Tank successful deals, other businesses you are looking at or studying, or your own business.
- Equity
Definition: Equity is the amount of money that would be returned to a company’s shareholders if all the assets were liquidated and all the company’s debt was paid off in the case of liquidation.
Simple explanation: It is the share or ownership that one holds in a company. It is usually referred to as shareholders’ equity (or owners’ equity for privately held companies).
- Valuation
Definition: Valuation is the logical process of determining the current or projected worth of a company.
Simple explanation: It is the estimated worth of a startup/ company that helps in business growth strategies for small businesses, capital financing, mergers and acquisitions, and investing in securities.
- Bootstrapping
Definition: This refers to a situation in which an entrepreneur starts a company with little capital.
Simple explanation: While going through all the Shark Tank successful deals, you would have come across the word Bootstrapping. Bootstrapping is when a business is boosted with personal savings. When an individual bootstraps, they depend on money other than outside investments.
- Angel Investor
Definition: An angel investor offers initial seed money for startup businesses, usually in exchange for ownership equity in the company.
Simple explanation: This is a part of startup funding basics, where a person sees value in a business and invests in it from the very beginning. Angel investors can also be family members and friends who see potential and invest in a business. Angel investors may either provide a one-time investment or agree to re-invest depending on the business strategy.
- Venture Capital
Definition: Venture capital (VC) is a form of private equity and a type of financing for startup companies and small businesses with long-term growth potential.
Simple explanation: It is a type of financing that small/ medium businesses receive from investors, investment banks, and financial institutions.
- Seed Funding
Definition: Seed funding is the initial round of investment for a startup company.
Simple explanation: It is the initial capital that helps kickstart the business’s early development and growth. One often comes across the word seed as part of startup funding basics.
- Series A, B, C Funding
Definition: Series A, B, and C are funding rounds that usually follow seed funding and angel investment, providing outside investors the opportunity to invest cash in a growing company in exchange for equity or partial ownership.
Simple explanation: A company requires funding during different stages of its growth. Series A, B, and C are the investments a company receives during the different stages.
- Term Sheet
Definition: A term sheet is a non-binding agreement showing an investment’s essential terms and conditions.
Simple explanation: Documentation is an important part of any process. Remember, when you hear ‘term sheet’ in the success stories of Shark Tank India, it is a document outlining an investment deal.
- Debt Financing
Definition: The money raised by businesses by borrowing from lenders, such as banks or financial institutions.
Simple explanation: Debt financing is when a business raises capital through loans.
- ROI (Return on Investment)
Definition: Return on investment (ROI) is a performance measure used to evaluate the efficiency or profitability of an investment or compare the efficiency of several different investments.
Simple explanation: You would have seen on Shark Tank successful deals where the judges talk about Return on Investment and the important role it plays. It is a measure used to know the profitability of the investment.
Read more about How to Apply for Shark Tank India 2025: Step-by-Step Guide for Entrepreneurs
Business Strategy & Growth Terms
As a business grows, more factors influence it. There are newer business terminologies that one comes across when understanding and experiencing business strategy and growth. Here’s the next set of startup investment terms explained. These can help you understand business terms for entrepreneurs, or even to crack the Shark Tank investment guide.
- Revenue Model
Definition: It is the company’s business plan that outlines how it will make money through its products or services.
Simple explanation: The revenue model of a company is how it makes money. It is an important part of the business plan and helps identify the products or services the business plans to sell, the target market, and any expenses in the future.
- Gross Margin
Definition: Gross margin is the percentage of a company’s revenue that is retained after direct expenses of producing the goods and services it sells (known as COGS, Cost of Goods Sold, or Cost of Revenue).
Simple explanation: It is the profit of the company after deducting direct expenses like the cost of producing or selling goods or services.
- CAC (Customer Acquisition Cost)
Definition: The cost of acquisition is the total expense incurred by a business in acquiring a new client or purchasing an asset.
Simple explanation: For any business, customer acquisition cost is the cost of getting a new customer.
- LTV (Lifetime Value)
Definition: It is an estimate of how much revenue a customer will generate throughout their relationship with a business.
Simple explanation: It is the revenue that a business will get from a customer over the time they engage with the business. It’s also referred to as customer lifetime value (CLV).
- Scalability
Definition: Scalability is the ability of a company to sustain or better its performance in terms of profitability or efficiency, as its sales volume increases.
Simple explanation: Growing can come with its own set of challenges. Scalability is the ability to grow without a company experiencing major costs.
- Intellectual Property (IP)
Definition: Refers to the creations of the mind, such as ideas, inventions, literary and artistic works, designs, symbols, names, and images used in commerce.
Simple explanation: It is ideas, innovations, designs, etc. that are created by an individual and are legally protected so that they cannot be used without consent.
- Burn Rate
Definition: The burn rate represents the speed at which an unprofitable company consumes its cash reserves.
Simple explanation: It is the rate at which a startup company spends its money before creating a positive cash flow from operations.
- Business Pivot
Definition: Is a strategic change to a company’s products, services, or business model that helps the company to adapt to market conditions, customer feedback, or new opportunities.
Simple explanation: Any business needs to adapt to change to meet the changing market conditions, consumer behaviour, technological advancements, competition, and regulatory changes. Business Pivot is when a company changes its strategy based on the above points for growth.
- Market Share Definition:
Market share is the percentage of total sales in an industry generated by a particular company.
Simple explanation: It is the company’s share that is generated through sales in its industry. For a t-shirt company, it will be the total sales generated against other t-shirt companies.
- Disruptive Innovation
Definition: These are innovations usually involving technology that make expensive products and services more affordable and accessible.
Simple explanation: Disruptive innovations are game-changing ideas that can change the way businesses work.
Marketing & Sales Terms
Marketing and Sales are important aspects of any business. They help promote products and services, generate leads, and increase revenue. These marketing and sales terms will help you understand this part of business better, be it when breaking down success stories of Shark Tank India or for your own business.
- Brand Equity
Definition: It is the value that a company generates from a product or service with a recognisable name when compared to a generic equivalent.
Simple explanation: Brand equity is the value that is formed by different aspects like brand awareness, brand association, perceived quality, brand loyalty, etc. In essence, it is the customer trust and recognition that a brand receives.
- Conversion Rate
Definition: Conversion rate refers to the percentage of users who take the desired action in response to the marketing efforts or a specific call to action.
Simple explanation: It is the percentage of visitors who buy through a website/ store in response to marketing efforts made by the brand.
- Upselling
Definition: Upselling is the exercise of nudging customers to purchase an upgraded or more expensive version of a product or service.
Simple explanation: It is the simple act of encouraging customers to buy more.
- Churn Rate
Definition: Churn rate, also known as the rate of attrition, is the rate at which customers stop engaging in business with an entity.
Simple explanation: It is the rate at which customers stop using a service or doing business with a company.
- Product-Market Fit
Definition: Product-Market Fit (PMF) is the extent to which a product or service meets the needs of its target market.
Simple explanation: It is when a product meets market demand and has people buying, using, and sharing about the product.
- Lead Generation
Definition: Lead generation is the process of generating consumer interest in a product or service and turning that interest into a sale.
Simple explanation: Is the effort taken by a company to create awareness and attract potential customers.
- Elevator Pitch
Definition: An elevator pitch is made by an entrepreneur to convince a venture capitalist that a business idea is worth investing in.
Simple explanation: It’s a crisp, impactful pitch made by a business owner to get people interested in their business idea.
- B2B vs. B2C
Definition: B2B stands for ‘business to business’ and is a type of transaction that occurs between two businesses while B2C is ‘business to consumer’ and occurs between a business and its consumer.
Simple explanation: B2B is when the exchange of information, goods, or services takes place between two businesses. B2C is when the exchange of information, goods, or services takes place between a business and its end consumers.
- Minimum Viable Product (MVP)
Definition: A minimum viable product (MVP) is a product with enough features to get early customers to use and validate a product idea.
Simple explanation: It is a basic version of a product that can be used by a set audience that confirms the need for the product before developing a fully functional one.
- Exit Strategy
Definition: An exit strategy is a contingency plan executed by an investor, venture capitalist, or business owner to liquidate a position in a financial asset or dispose of tangible business assets once predetermined criteria have been met or exceeded.
Simple explanation: It is an investor, venture capitalist, or business owner’s plan on how to leave a business profitably, if there is ever a need to do so.
With this, we sum up the Shark Tank investment guide, preparing those who would like to speak the language of investors and business leaders that are present on Shark Tank India. For those who wonder how to pitch on Shark Tank India, and wish to prepare for it, this guide will be of great help. From talking about startup funding basics to business growth strategies for small businesses to marketing and sales terms for startups, this is a ready tool-book to decode Shark Tank India success stories and plan your own business with clarity. For more such informative pieces, and insights on entrepreneurship and business success, stay tuned to BharatNxt’s latest blog!