Founder Glossary

The essential dictionary of concepts, metrics, and technologies for the AI-augmented founder.

A

AI Agent

An AI system that perceives its environment, makes decisions, and takes autonomous actions to achieve a goal without continuous human intervention.

Annual Recurring Revenue (ARR)

The value of the contracted recurring revenue components of your term subscriptions normalized to a one-year period.

C

Customer Acquisition Cost (CAC)

The total cost of sales and marketing efforts that are needed to acquire a new customer.

L

Large Language Model (LLM)

A type of artificial intelligence algorithm that uses deep learning techniques and massive datasets to understand, summarize, generate, and predict new content.

R

Retrieval-Augmented Generation (RAG)

An AI framework that improves the quality of LLM-generated responses by grounding the model on external sources of knowledge.