Glossary

Glossary created by Funderbeam. Contributions from the Business Angel Institute and Invesdor.com

Terms beginning with: E


Early stage

Please see Stages

EIR

Please see Entrepreneur in residence

Elevator pitch

A very short and focused presentation of business ideas that covers the most important facts and includes a call to action. Related: Deal screening

Entrepreneur in residence (EIR)

A term used mainly in the venture capital industry. It refers to an experienced entrepreneur with a lot of know-how in a particular area. An EIR can fulfill different roles such as looking for new entrepreneurial ventures, assisting in the evaluation of potential investments, and mentoring portfolio companies. Related: Venture capital

Entrepreneur in residence (EIR)

A term used mainly in the venture capital industry. It refers to an experienced entrepreneur with a lot of know-how in a particular area. An EIR can fulfill different roles such as looking for new entrepreneurial ventures, assisting in the evaluation of potential investments, and mentoring portfolio companies. Related: Venture capital

Equity crowdfunding

A form of crowdfunding in which contributors receive equity in return for financing. That is, contributors are compensated with shares in the issuing company and become shareholders, with accompanying rights and obligations. The target crowd consists of investors and businesses of various sizes.

Equity financing

Investment in exchange for company ownership (equity).

Escape velocity

The moment a company reaches growth momentum that puts it ahead of the competition.

Exit channels

The various routes available to company owners to sell (usually all of) their shares. Commonly-sought exit channels are sale to a strategic buyer,  sale to a financial buyer, or an initial public offering. Other possibilities include a repurchase or liquidation.

Exits

Exiting an investment by selling or transferring one's ownership stake in a company.

Expansion capital

Please see Financing rounds