A business-plan template often used by startup companies. It is a short and visual alternative to the traditional business plan and can be specifically geared towards startups. Specific variants include the Business Model Canvas, the Lean Canvas, and the Startup Canvas.
A specific kind of convertible debt. When notes are converted into equity the conversion valuation is capped or sealed, i.e the minimum conversion rate for the investor is fixed. This is considered a more favourable term to the investor than uncapped notes which have no such guarantees.
Compensation for a fund manager in the form of a share of profits from an investment. Carried interest acts as an incentive for the fund manager to improve the fund's performance.
Please see Carried interest
Please see Burn rate
Specific conditions that have to be met before one or all parties to an agreement have to honour their obligations in full. The parties have no obligation to proceed with the agreement while closing conditions remain unsatisfied or incomplete.
The date when a transaction is brought to completion.
Please see Investor roles
The risk of a loss of market share due to changes in the market or actions of competitors.
Rights to convert an existing type of investment into another. For example, a convertible bond gives the bond holder the right to convert the bond into shares (equity).
Debt that can be converted into shares (equity).
A term that is used when a company either invests internally in innovation and the development of a new product, makes an external investment in another company, or creates an alliance with another company for innovation purposes.
The practice of soliciting financial contributions from a large number of people, especially from the online community. Crowdfunding activities are generally intermediated by crowdfunding platforms.
Online services and communities that make it possible to collect small financial contributions from a large group of people. This is an alternative to traditional loans or investment from friends and family, angel investors, and venture capital.
A Lean startup framework that helps to validate the product/market fit and build the right product or service for customers. Its four stages are customer discovery, customer validation, customer creation, and company building.