Glossary

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

Terms beginning with: F


Family office

A company or structure that is established to manage the investments of a single wealthy person or family.

Financial exits

A form of exit where a company is sold to a financial investor, such as a private equity fund, that is mainly interested in the return on investment. Related: Strategic exits

Financial investor

Please see Investor roles

Financing rounds

Attempts by a company to raise capital. Common terms include seed for the very first round, Series A/B/C etc. for successively larger rounds, terms describing the types of investors involved (e.g. angel rounds or venture-capital rounds), terms describing the purpose of the round (e.g. growth or expansion capital for strategically increasing capacity, bridge loans for short periods of time), and terms describing the character of the investment instruments used (e.g. mezzanine can be a hybrid between debt and equity). Related: Follow-on rounds and Stages

Follow-on rounds

Any financing rounds after the first one. Accelerators

Freemium

A business model where a basic version of a service or product is available for free, but if users want to use enhanced features, they have to upgrade to a paid version.  Accelerators foobar

Fund of funds

An investment fund that invests in other funds.

Funding

Financing the activities of the company through equity investment or other instruments such as convertible notes.