First Round Glossary

ARR

Annual Recurring Revenue (ARR) is the amount of predictable subscription revenue a company expects to generate in a year.

K-factor

K-Factor (also called the virality coefficient) measures how many new users each existing user or customer brings in over a defined time period.

Net Revenue Retention (NRR)

Net Revenue Retention (NRR) measures how much recurring revenue you retain and expand from existing customers over a set period, usually a year.

Scalability

Scalability is how a business, product, process or system grows under increased demand while maintaining performance.

Stealth Mode

A stealth mode startup is a company that deliberately avoids public visibility while developing its product and operations.