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

Terms beginning with: L

Later stage

Please see Stages

Lead investor

When several investors invest in the same company, one of them usually takes a more active role in managing the process before the investment (e.g. due diligence) and afterwards (e.g. monitoring progress). Sometimes, the lead investor is granted an additional financial incentive by the other investors. Related: Investor roles


Please see Lean startup

Lean canvas

Please see Canvas

Lean startup

An approach to the process of building a company emphasizing learning by doing. Especially suited for startups with relatively little capital seeking to bring products or services to the market as soon as possible without complex pre-planning. Related: Customer development and Iteration

Leveraged buyout

Using borrowed capital to purchase the company from its current owners.

Limited partners

Please see Venture capital


The shutting down of a company through dissolution or bankruptcy. Confusingly, in venture capital parlance, it sometimes marks an exit - the sale or transfer a company to a third party. Related: Exit channels

Liquidation preferences

The preferred right of a venture investor to receive proceeds of the company before other shareholders in case of liquidation (dissolution, bankruptcy, or sale).