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

Terms beginning with: T

Tag along

The right of the minority shareholder to tag along with the majority shareholder at equal terms when the company is sold.


When investors are called to make a capital contribution, the amount and timing of the contribution is the takedown schedule. Also known as drawdowns.

Team risk

Any risk associated with the founding team. The team is a crucial element of a startup and therefore the founders need to share the same vision and their know-how, experience, and personalities must fit together in order to build a successful company.

Technology risk

Any risk associated with technologies used by a business. For example, using a technology that depends on a single supplier (lock-in) can constitute a technology risk.

Term sheet

A short document that outlines the main conditions of the proposal or intended transaction.

Ticket size

The amount of money that goes into an investment transaction.


Please see Validation

Trade sale

A possible exit method for investors where the business is sold to another company, e.g. a competitor. Related: Exit channels


Portions of a deal or structured financing that are paid out only under certain condition (typically the achievement of pre-agreed milestones).

Transaction costs

Expenses that occur when investors buy or sell securities. In the context of early stage investments, the amount of time investors put into deal screening, due diligence, negotiations etc. should be regarded as part of the transactions costs, in addition to cash costs e.g. for lawyers.