Question 1

Incubator/Accelerator

Accepted Answer

A company that helps startups to grow by providing them with services
such as mentorship, office space, legal advice, access to investors, etc.

Question 2

LP

Accepted Answer

A limited partner (LP) is a co-owner of a company. Unlike the general partner, who runs the business, limited partners are not involved in management or operations.

Question 3

Pitch

Accepted Answer

A presentation that is given by the entrepreneur to illustrate the idea of the business and the what it takes to grow the business. A perfect pitch must be around 10 minutes long.

Question 4

Preffered stock

Accepted Answer

This type of stock has no voting rights, but gets to be paid before common shareholders.

Question 5

Pro Rata rights

Accepted Answer

The ability to maintain ownership by getting additional shares. When a company raises funds
in future rounds, previous investors have the right to invest again, in order to avoid major
dilution in the company.

Question 6

SAFE (Simple Agreement for Future Equity)

Accepted Answer

Agreement between an investor and a company that provides rights to the investor for future equity in the company similar to a warrant, except without determining a specific price per share at the time of the initial investment. The SAFE investor receives the futures shares when a priced round of investment or liquidation event occurs.

Question 7

Share/Stock

Accepted Answer

A share/stock (also known as equity) is a security that represents the ownership of a fraction of a corporation. This entitles the owner of the stock to a proportion of the corporation's assets and profits equal to how much stock they own.

Question 8

Startup (Portfolio Company)

Accepted Answer

A company that is in its early stage of operation, usually raises
funds using venture capitalists. Has a potential to grow rapidly with the use of technology.

Question 9

Syndicate

Accepted Answer

A temporary alliance of businesses or individuals that joins together to manage a large transaction, which would be difficult, or impossible, to effect individually. Syndication makes it easy for companies to pool their resources and share risks.

Question 10

Venture Capital

Accepted Answer

Venture capital is a form of private equity and a type of financing that investors provide to startup companies and small businesses that are believed to have long-term growth potential. Venture capital generally comes from well-off investors, investment banks and any other financial institutions.

Preguntas frecuentes y glosario de términos

FAQ's

Glosario de términos

Vídeo tutoriales

Capital Raising SPV

SPV Documents

Side Letters

Professional Taxes

Post Close

Investor Experience

Videos Tutoriales

Contáctanos para encontrar tu camino hacia tu futuro.

Sobre nosotros

Consultas

Redes Sociales

SV Links