Knowledge base

The IndieFounder Glossary.

Plain-English definitions for founders, developers, and AI builders.

AI Agent

A software system that uses an AI model to decide or coordinate actions toward a goal.

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MCP

Model Context Protocol is an open protocol for connecting AI applications to external tools and data sources.

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RAG

Retrieval-augmented generation combines a model with retrieved external information to improve grounded answers.

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MRR

Monthly recurring revenue is the recurring subscription revenue a business expects in a month.

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ARR

Annual recurring revenue is normalized recurring subscription revenue over one year.

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CAC

Customer acquisition cost is the average cost required to acquire one new customer.

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LTV

Customer lifetime value estimates the revenue or gross profit a customer generates over the relationship.

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Churn

The rate at which customers or recurring revenue are lost during a period.

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ARPU

Average revenue per user measures average revenue generated per user over a defined period.

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Runway

The amount of time a startup can operate before running out of cash at its current burn rate.

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Burn Rate

The rate at which a company consumes cash, usually measured monthly.

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Context Window

The amount of information an AI model can process within one interaction.

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Inference

The process of running a trained AI model to produce an output from an input.

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Vector Database

A database optimized for storing and retrieving numerical vector representations of information.

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MVP

The smallest useful version of a product that can test a real customer assumption.

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PMF

Product-market fit describes strong evidence that a product solves a meaningful problem for a defined market.

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