VC-Glossary Terms

A plan for how investors will eventually cash out their inve...

The process of investigating and analyzing the financial, le...

When investing into a fund, investors commit to a certain am...

A down round refers to the scenario where a startup raises a...

A distribution waterfall is a method used to distribute prof...

Dissolution is the process by which a partnership is termina...

A distribution refers to the payment of profits or returns f...

A control person is an individual with significant responsib...

Co-investors are the other investors participating in the ro...

The commitment period is the period of time during which inv...

A clawback provision is a contractual provision that allows...

Carried interest is a share of the profits that is paid to/e...

A fund's capital structure is the way in which the fund is f...

A capital call is a request made by the venture capital fund...

A spreadsheet that lists all the shareholders, equity owners...

The capital account is used to track the investor's contribu...

A beneficial owner is a person who directly or indirectly, t...

A wealthy individual who invests their personal funds in ear...

Allocation refers to the amount a given person or fund is ab...

An accredited investor is an individual or entity that meets...

If you’re involved in a startup, especially one that offers...

If you’ve received restricted stock or stock options from yo...

An Advisor Agreement is an agreement between an advisor to a...