A List of Essential Venture Capital Terminology
There's a lot of terminology to know when it comes to startups & VC.
Below is a collection of the 90 most important terms to know.
This article is in collaboration with GoingVC, read the full piece over here.
🟣 Accelerator
🟣 Acquisition
🟣 Angel Investor
🟣 Anti-Dilution Provision
🟣 Bootstrapping
🟣 Bridge Financing
🟣 Burn Rate
🟣 Buyout
🟣 Benchmarks
🟣 Capital Call
🟣 Capital Under Management
🟣 Cap Table (Capitalization Table)
🟣 Carry (Carried Interest)
🟣 Convertible Note
🟣 Crowdfunding
🟣 Deal Flow
🟣 Due Diligence
🟣 Dilution
🟣 Drag-Along Rights
🟣 Exit Strategy
🟣 Equity Financing
🟣 EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization)
🟣 Early-Stage Funding
🟣 Follow-on Investment
🟣 Fund of Funds
🟣 Founder’s Stock
🟣 Full Ratchet
🟣 Family Office
🟣 Growth Stage
🟣 GP (General Partner)
🟣 Hurdle Rate
🟣 Harvest Period
🟣 IPO (Initial Public Offering)
🟣 Incubator
🟣 Internal Rate of Return (IRR)
🟣 Investment Committee
🟣 J-Curve
🟣 KPI (Key Performance Indicator)
🟣 Lead Investor
🟣 Limited Partner (LP)
🟣 Liquidation Preference
🟣 Management Fee
🟣 Market Capitalization
🟣 Mezzanine Financing
🟣 Multiples
🟣 Non-Disclosure Agreement (NDA)
🟣 Net Asset Value (NAV)
🟣 Non-Dilutive Funding
🟣 Option Pool
🟣 Overhang
🟣 Operational Support
🟣 Pivot
🟣 Preferred Stock
🟣 Pre-Money Valuation
🟣 Post-Money Valuation
🟣 PIPE (Private Investment in Public Equity)
🟣 Quorum
🟣 Quick Ratio
🟣 ROI (Return on Investment)
🟣 Round
🟣 Runway
🟣 Recapitalization
🟣 Seed Capital
🟣 Series A, B, C Funding
🟣 Syndicate
🟣 Strategic Investor
🟣 SAFE (Simple Agreement for Future Equity)
🟣 Term Sheet
🟣 Traction
🟣 Total Addressable Market (TAM)
🟣 Trade Sale
🟣 Unicorn
🟣 Unsecured Debt
🟣 Valuation
🟣 Vesting
🟣 Venture Debt
🟣 Vintage Year
🟣 Warrants
🟣 Waterfall
🟣 Exit Multiple
🟣 Yield
🟣 Zero-Based Budgeting
🟣 Venture Partner
🟣 Side Letter
🟣 Clawback
🟣 Convertible Preferred Stock
🟣 General Solicitation
🟣 Management Buyout (MBO)
🟣 Pre-Seed Funding
🟣 Special Purpose Vehicle (SPV)I hope this list was helpful!
