Master the language of venture capital with 100+ terms every founder needs to know
A flexible venture capital model providing investment and operational services without traditional fund structures, typically with lower minimums and faster decisions.
Part-time venture partners who provide investment expertise and services to multiple funds or startups simultaneously.
Venture capital services integrated directly into accelerators, studios, or corporate innovation programs.
The practice of creating startups from scratch with systematic support, combining investment capital with hands-on company building.
A spreadsheet showing the equity ownership structure of a company, including shares, options, and ownership percentages.
The reduction in existing shareholders' ownership percentage when new shares are issued.
The timeline over which employees earn their stock options or equity grants.
A period before vesting begins, typically one year for employees.
The rate at which a company spends its cash reserves, typically measured monthly.
The amount of time a company can operate before running out of cash.
A venture fund that accepts capital on a quarterly subscription basis rather than traditional 10-year commitments.
A financing contract that allows investors to buy shares in a future priced round, popularized by Y Combinator.
A loan that converts to equity at a future financing round, typically with a discount or valuation cap.
The first significant round of venture capital financing, typically $2-15M for scaling proven concepts.
The investigation process investors conduct before making an investment decision.
The primary investor who sets terms, prices the round, and typically takes a board seat.
The order and amount investors get paid in a liquidation event before common shareholders.
The right for investors to maintain their ownership percentage in future funding rounds.
A non-binding agreement outlining the basic terms and conditions of an investment.
The total revenue opportunity available for a product or service.
The portion of TAM that your product can realistically serve.
The portion of SAM you can realistically capture in the near term.
The predictable revenue a company expects to receive every month from subscriptions.
The yearly value of recurring revenue from subscriptions, calculated as MRR × 12.
The share of profits (typically 20%) that general partners receive from successful investments.
Investors who provide capital to venture funds but don't actively manage investments.
The managing partners of a VC fund who make investment decisions and manage portfolio companies.
An independent appraisal of a private company's stock value for tax compliance purposes.
The value of a company before receiving a new investment round.
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