Glossary of Terms
Get to know the Venture Capital and Private Equity industries' investment terms.
By Jolie1 author234 articles
- Capital call / Drawdown
- Carried Interest
- Cash-adjusted or Roll-forward Valuation
- Commitment / Committed capital
- Distribution
- Distributions to paid-in capital (DPI)
- Environmental, Social and Governance (“ESG”)
- Final Closing and First Closing
- Fund formation documents
- Fund Leverage
- General Partner/GP/Manager
- Investor/Limited Partner/LP
- NAV
- Total original cost
- Paid-in capital
- Paid-in capital to commitment (PiCC)
- Recallable distributions
- Residual Value
- Residual value to paid-in capital (RVPI)
- Total Value to Paid-in Capital (TVPI)
- Unfunded commitment
- Vintage year
- Investment amount
- Realized amount
- Number of Shares owned by the fund after the investment
- Fair Value
- Total number of shares in the company after the investment
- Post money valuation
- Total note amount (principal + interest)
- Accumulated Interest
- Amount Converted to Equity
- Write Off Amount
- Extended Amount
- Maturity Date
- Interest Rate
- Compounded
- Warrants & Covenants
- Original Note date
- Additional Notes
- Lead Investor
- Ticker
- Number of Payments
- Payment date
- Total Invested
- Gross IRR (%)
- Multiple
- ROI (%)
- Initial Investment Date
- Exited Amount
- Realized Amount
- Invested Amount
- Ownership
- Payment amount
- Shares in the Company
- Price per Share
- Shares Owned Total
- Earn-outs
- Balanced VC fund
- Buyout/later stage PE fund
- Calendar year
- Convertible equity
- Corporate investor
- Distressed debt fund
- Divestment
- Early-stage VC fund
- Fiscal year/financial year
- Fund-of-funds
- Funds under management
- Generalist fund
- GP Commitments
- Growth/expansion PE fund
- Initial public offering (IPO)
- Investment
- Later stage VC fund
- Management buy-in (MBI)
- Management buy-out (MBO)
- Mezzanine Fund or Mezzanine financing
- Private Equity (PE) firm
- Proceeds
- Public-to-private
- Refinancing bank debt
- Repayment of preference shares/loans
- Sale of quoted equity post-flotation
- Sale to another PE firm
- Sale to management
- Secondary fund or secondary purchase/replacement capital
- Secured debt
- Sovereign funds
- Start-up
- Trade sale
- Unsecured debt
- Venture Capital
- Write-off
- Accelerator
- Advisory Board
- Amortization
- Angel Financing
- Angel Investor (Business Angel)
- Anti-Dilution Provisions
- Articles of Incorporation (Articles of Association)
- Assets
- Balance Sheet
- Bankruptcy
- Benchmark
- Board
- Bonds
- Business Plan
- Business to Business (B-to-B/B2B)
- Business to Consumer (B-to-C/B2C)
- Buyback
- Call Option
- Capital
- Capital Under Management
- Capitalization Table
- Cliff
- Closing
- Co-investment
- Collateral
- Conversion Ratio
- Convertible Bond
- Convertible Loan
- Convertible Preferred Stock
- Convertibles
- Corporate Venture Capital
- Covenant
- Crowdfunding
- Deal Lead
- Deal Structure
- Debt Financing
- Deck (aka Pitch Deck)
- Dilution
- Discounted Convertible Loan
- Diversification
- Double Bottom Line
- Down-round
- Drip Feed
- Dry Powder
- Due diligence
- Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA)
- Economies of Scale
- Employee Stock Option Plan (ESOP)
- Equity Financing
- Executive Summary
- Exit
- Expansion Stage
- Expenses
- First-round Financing
- Flat Round
- Flip
- Founders’ Agreement
- Friends & Family Round
- Golden Handcuffs
- Golden Parachute
- Hockey Stick
- Holding Company
- Hurdle Rate (preferred return)
- Illiquid investment
- Income Statement
- Information Rights
- Institutional Investors
- Intellectual Property
- Internal Rate of Return (IRR)
- Investment Round
- J-curve
- Key Employees
- Leverage
- Leveraged buyout (LBO)
- Liquidation
- Liquidation Preference
- Liquidation Waterfall
- Liquidity Event
- Lock-up Period
- Management Fee
- Management Team
- Valuation
- Market Capitalization
- Minimum Viable Product
- Net Income
- No Shop, No Solicitation Clauses
- Non-Compete Agreement
- Non-disclosure agreement (NDA)
- Non-Solicitation Agreement
- Operating Budget
- Option (option agreement)
- Pari Passu
- Pipeline
- Pivot
- Portfolio
- Portfolio companies
- Post-money Cap Table
- Post-money Valuation
- Pre-emptive Right
- Preferred Dividend
- Private Company
- Private Equity
- Private Placement
- Private Placement Memorandum
- Pro rata
- Proof of concept
- Representations and Warranties
- Retained Earnings
- Return on Investment (ROI)
- Reverse Vesting
- Scalability
- Secondary Sale
- Securities
- Seed Capital
- Seed Round
- Seed Stage
- Series A Round
- Series B, C, D... rounds
- Shareholders Agreement
- Shares (Common Stock)
- Preferred stock
- Share premium
- Dividend
- Simple Agreement for Future Equity (SAFE)
- Soft Landing
- Spray and Pray
- Stock Option Pool
- Stock Options
- Sweat Equity
- Syndication
- Tag Along/Drag Along
- Term sheet
- Trademark
- Unicorn
- Up-round
- Valley of Death
- Valuation Cap
- Venture Capital Financing
- Venture Capital Fund
- Vesting
- Vesting Schedule