HardGamma
  • Glossary
    • 7 parts of a winning business plan
    • Accelerator vs incubator vs venture building
    • Advisory Shares: what startup founders need to know
    • Capital Call: Explaining the Mechanism in Venture Capital
    • Fund of Funds (FOF)
    • General Partner (GP) in Venture Capital
    • How to get into venture capital
    • J-Curve
    • Net Asset Value (NAV)
    • Risk Diversification in Private Equity
    • Special Purpose Vehicle (SPV) and Why Companies Form Them
    • Total Value to Paid In (TVPI)
    • Venture capital: advantages and disadvantages
    • Venture Capitalist vs Angel Investor: Which is Better and Why?
    • Vintage Year in Private Equity?
    • What is an LP in Venture Capital?
    • What is Dry Powder in Private Equity?
    • What is Multiple on Invested Capital (MOIC)?
    • Pro Rata Rights in Venture Capital Deals
    • Definition: Qualified Purchaser
    • Anti-Dilution Protection for VC Investors
    • ROFR meaning in VC
    • Distribution Waterfall
    • What is a VC Term Sheet?
    • Fund administration
HardGamma
HardGamma
  • Glossary
    • 7 parts of a winning business plan
    • Accelerator vs incubator vs venture building
    • Advisory Shares: what startup founders need to know
    • Capital Call: Explaining the Mechanism in Venture Capital
    • Fund of Funds (FOF)
    • General Partner (GP) in Venture Capital
    • How to get into venture capital
    • J-Curve
    • Net Asset Value (NAV)
    • Risk Diversification in Private Equity
    • Special Purpose Vehicle (SPV) and Why Companies Form Them
    • Total Value to Paid In (TVPI)
    • Venture capital: advantages and disadvantages
    • Venture Capitalist vs Angel Investor: Which is Better and Why?
    • Vintage Year in Private Equity?
    • What is an LP in Venture Capital?
    • What is Dry Powder in Private Equity?
    • What is Multiple on Invested Capital (MOIC)?
    • Pro Rata Rights in Venture Capital Deals
    • Definition: Qualified Purchaser
    • Anti-Dilution Protection for VC Investors
    • ROFR meaning in VC
    • Distribution Waterfall
    • What is a VC Term Sheet?
    • Fund administration

Browsing Category

Glossary

74 posts

The investing and venture capital community has a distinctive set of jargon unique to its field.

Investment Glossary

Starting a new business often involves joining an incubator or accelerator program, which provides support and resources to grow the startup. An effective elevator pitch can captivate an angel investor or venture capitalist, professionals who offer financial support for equity.

A well-structured capitalization table, showing the company’s equity ownership, is vital when seeking investment. Investors perform due diligence, investigating the startup’s value and risks before presenting a term sheet, outlining the investment’s basic terms.

Investors may offer committed capital or convertible loans that can be turned into equity later. Existing shareholders may experience dilution, where their ownership percentage reduces as new shares are issued.

Private equity firms are also involved in funding startups, differing from venture capitalists by investing in more established companies. The deal flow, representing the rate of business proposals and investment offers, is vital for investors.

A formal investment agreement may be preceded by a letter of intent, laying out the primary terms of the deal. Liquidity, referring to how quickly assets can be bought or sold, is another essential consideration for both investors and startups. Understanding these terms is crucial for successful fundraising and growth.

rofr
Read More
    GGlossary

    ROFR meaning in VC

    • byBram Speelman
    • August 1, 2023
    The Right of First Refusal (ROFR) is a provision in startup equity deals that gives a particular investor…
    venture capital fund
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      GGlossary

      Venture Capital Fund

      • byBram Speelman
      • August 1, 2023
      A Venture Capital Fund is a type of investment fund that provides financing to startups and small businesses…
      stock vesting
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        GGlossary

        What is Stock Vesting?

        • byBram Speelman
        • August 1, 2023
        Stock vesting refers to the process by which an employee gains ownership of company stock over time. It…
        distribution-waterfall
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          GGlossary

          Distribution Waterfall

          • byBram Speelman
          • August 1, 2023
          The distribution waterfall is a fundamental concept in the realm of private equity investments. It outlines the process…
          term sheet in vc
          Read More
            GGlossary

            What is a VC Term Sheet?

            • byBram Speelman
            • August 1, 2023
            A VC term sheet is a document used in venture capital financing, outlining the main terms and conditions…
            fund administration in venture capital
            Read More
              GGlossary

              Fund administration

              • byBram Speelman
              • August 1, 2023
              What is fund administration in venture capital? Fund administration in venture capital involves managing the legal and financial…
              general partner in private equity
              Read More
                GGlossary

                General Partner (GP) in Venture Capital

                • byBram Speelman
                • July 31, 2023
                In the world of venture capital (VC), General Partners (GPs) play a critical role in managing and overseeing…
                fund of funds
                Read More
                  GGlossary

                  Fund of Funds (FOF)

                  • byBram Speelman
                  • July 31, 2023
                  A Fund of Funds (FOF) is an investment strategy where a single investment fund invests in other investment…
                  vintage year in private equity
                  Read More
                    GGlossary

                    Vintage Year in Private Equity?

                    • byBram Speelman
                    • July 31, 2023
                    In the context of private equity, a vintage year refers to the year in which a private equity…
                    risk diversification in vc
                    Read More
                      GGlossary

                      Risk Diversification in Private Equity

                      • byBram Speelman
                      • July 31, 2023
                      Risk Diversification Risk diversification is a fundamental strategy employed in private equity investments to manage and mitigate potential…
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