The 82 Startup, Venture Capital and Fundraising Terms Every Founder and Investor Should Know

Jump to Business Glossary Terms by Topic:

Startup Ecosystem Support Terms

1. INCUBATORS

2. ACCELERATORS

Startup Finance and Accounting Terms

3. BURN RATE

4. RUNWAY

5. RUN RATE

Product and Development Terms

6. PROOF OF CONCEPT (POC)

7. PRODUCT-MARKET FIT

8. ALPHA TEST

9. BETA TEST

10. PIVOT

Ways of Funding Your Startup

11. BOOTSTRAPPING / SELF-FUNDING

12. CROWDFUNDING

13. EQUITY CROWDFUNDING

14. VENTURE FUNDING

15. VENTURE DEBT

16. CONVERTIBLE NOTES

17. SAFE (SImple Agreement for Future Equity)

18. MEZZANINE FINANCING

Types of Investors

19. ANGEL INVESTORS

20. VENTURE CAPITALISTS

21. INVESTMENT / ANGEL SYNDICATE

22. LEAD INVESTOR / ANCHOR INVESTOR

23. MICRO VC

24. LIMITED PARTNERS

Types of Funding Rounds

25. FRIENDS AND FAMILY ROUND

26. PRE-SEED FUNDING

27. SEED FUNDING

28. SERIES A FUNDING

29. SERIES B FUNDING and Beyond

30. FLAT ROUND

31. DOWN ROUND

32. BRIDGE ROUND

33. PARTY ROUND

Stock and Equity Terms

34. EQUITY

35. COMMON STOCK / COMMON SHARES

36. PREFERRED STOCK / PREFERRED SHARES

37. STOCK OPTIONS

38. VESTING

39. CLIFF / VESTING CLIFF

40. EMPLOYEE STOCK OWNERSHIP PROGRAM (ESOP)

41. EXERCISE PRICE / STRIKE PRICE

42. EXIT EVENT / LIQUIDITY

43. FAIR MARKET VALUE

44. CAP TABLE

45. DILUTION

Fundraising and Term Sheet Terms

46. CAP

47. VALUATION

48. PRE-MONEY VALUATION

49. POST-MONEY VALUATION

50. DECK / PITCH DECK

51. TERM SHEET

52. STOCK PURCHASE AGREEMENT (SPA)

53. LIQUIDATION

54. LIQUIDATION PREFERENCES

55. SPV (SPECIAL PURPOSE VEHICLE)

56. DRAG-ALONG RIGHTS

57. DIVIDENDS

58. SECURITIES

59. NO SHOP CLAUSE

60. DUE DILIGENCE

Investor Rights and Protection

61. PRO RATA

62. REGISTRATION RIGHTS

63. LOCK-UP PROVISION

64. INFORMATION RIGHTS

65. RIGHT TO PARTICIPATE

66. EMPLOYEE OPTION POOL

67. PROTECTIVE PROVISIONS

68. ANTI DILUTION PROTECTION

69. EXCLUSIVITY

70. RIGHT OF FIRST REFUSAL

71. MFN (MOST FAVORED NATION) STATUS

72. RATCHET

Exit and IPO Terms

73. EXIT STRATEGY

74. INITIAL PUBLIC OFFERING (IPO)

75. PRIVATE PLACEMENT

76. MERGERS AND ACQUISITIONS (M&A)

77. ACQUI-HIRE

78. COMPANY TAKEDOWN

79. BUYOUT

80. RECAPITALIZATION

81. LOCK-UP PERIOD

82. SECONDARY SALES

Closing Thoughts

The Ultimate Guide to Startup Fundraising

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Climate Syndicate Lead @ 4WARD.VC | Startup Strategy & Growth Advisor @ mattward.io | Serial Founder: 3 Exits | Looking to join top Climate/Impact VC Fund

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