Definition
Profit share
An alternative to invoicing: build the MVP without a bill, then formalize revenue sharing if it works with real users.
From the episode “Vibe Coding Your MVP Is a Time Bomb: AI Workflows for Founders Who Want to Ship Twice”Hear it on the podcast1 episode
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Related terms in Startups & Fundraising
Pre-PMF StageThe phase between having an MVP and achieving product-market fit. Characterized by high uncertainty about what to build, active customer discovery, and rapid iteration. During this phase, technical excellence is explicitly not needed — what matters is the fastest path to understanding what customers will pull and pay for. The founder's four jobs at this stage: marketing, sales, customer conversations, and fundraising. Everything else is delegated.Pre-seedThe earliest outside funding round, often from angels.Priced roundAn equity financing with a set valuation, papered on standard NVCA model documents.Problem-Solution FitThe state in which a clearly defined customer problem is matched to a proposed solution that customers recognize as addressing their real need — established through customer conversations before building. Distinct from product-market fit, which requires a working product in a paying market.Proprietary Data MoatA defensibility strategy where a startup's unique dataset produces LLM outputs that public models cannot replicate, because public models regress to the mean of their training inputs.Reg A+A securities exemption allowing non-accredited investors to buy into a private company. SpotitEarly has one open at $7.15 per share.Reg CF (Regulation Crowdfunding)Caps at $5M in any 12-month period. Must run through a registered funding portal or broker-dealer. Mode's first raise.Restricted stock vs optionsRestricted stock means the person owns the shares now. Options are the right to buy later at today's price.