Terms
Burn Rate
Burn Rate may refer to a term frequently used in finance and project management, but within the context of insurance, particularly in claims and underwriting, it has a specific definition....
Board of Directors
The Board of Directors may refer to a governing body elected by shareholders to oversee the strategic direction, financial decisions, and overall management of a company. The definition of a...
Assets Under Management
Assets Under Management (AUM) may refer to the total market value of the investments that a person or entity manages on behalf of clients. The definition of AUM is crucial...
Investment
Investment is a term that may refer to the act of allocating resources, usually money, with the expectation of generating an income or profit. This strategic placement of capital is...
Valuation
Valuation may refer to the process of determining the monetary worth of an asset, business, investment, or liability based on financial analysis, market conditions, and economic factors. The definition of...
Exit
Exit in insurance and business terminology typically refers to the strategic decision or process by which an owner or investor sells or relinquishes ownership of their business stake, converting it...
Financial Ratios
Financial Ratios are quantitative measures derived from the financial statements of a company to assess its financial health, performance, and viability. These ratios are often used by stakeholders, including investors,...
Exit Strategy
Exit Strategy - In the context of business and finance, the definition of an Exit Strategy may refer to a planned approach to exit a situation in a way that...
Asset Deal
Asset Deal is a term commonly used in the context of business acquisitions, where it specifically refers to the purchase of a company by buying its assets instead of its...
Blind Pool
Blind Pool is a term that may refer to a financial arrangement wherein investors commit capital to an investment fund without specific knowledge of how their money will be used....
Preferred Stock
Preferred Stock is a class of ownership in a corporation that has a higher claim on its assets and earnings than common stock. Preferred shares generally have a dividend that...
Common Stock
Common Stock refers to a type of security that represents ownership in a corporation. Holders of common stock typically have voting rights and may have the right to receive dividends....
Term Sheet
Term Sheet refers to a non-binding agreement setting forth the basic terms and conditions under which an investment will be made. A term sheet serves as a template to develop...
Convertible Preferred Stock
Convertible Preferred Stock may refer to a specific class of preferred shares that offer the holder the option to convert these shares into a predetermined number of common shares, typically...
Investor
Investor: The term "investor" refers to an individual or entity that allocates capital with the expectation of receiving financial returns. This definition encompasses a wide range of investment types, including...
Accredited Investor
An accredited investor is a term used in fundraising, venture capital, and private equity to define individuals or entities that meet specific financial criteria, allowing them to invest in securities...
Angel Investor
Angel Investor refers to an affluent individual who provides capital for a business startup, usually in exchange for convertible debt or ownership equity. Angel investors typically fill the gap in...
Series B Funding
Series B Funding is a stage in the capital-raising process of a startup. This definition encompasses the financing round following the Series A round, typically involving more substantial investment amounts...
Acquisition Premium
Acquisition Premium is a term used in the context of mergers and acquisitions (M&A). It refers to the extra amount that an acquiring company agrees to pay over and above...
Accelerator
An accelerator in the context of fundraising refers to a structured program designed to support and rapidly scale early-stage startups. The meaning of an accelerator is closely tied to its...
Dilutive Financing
Dilutive Financing refers to any type of capital acquisition by a company where the issuance of new securities has the potential to reduce existing shareholders' ownership percentage. This type of...
Flat Round
Flat Round is a financial and investment term commonly used in venture capital and insurance discussions, especially concerning startup funding. By definition, a Flat Round may refer to a scenario...
Friends and Family Round
Friends and Family Round refers to an early stage of financing where startup entrepreneurs solicit financial support from personal connections, including friends, family, and sometimes close business associates. This round...
Due Diligence
Due Diligence is a term widely used across various industries, including insurance, finance, and law, to describe the careful, thorough investigation or audit of a potential investment, business decision, or...
Balanced Scorecard
Balanced Scorecard is a strategic planning and management system used extensively in business and industry, government, and nonprofit organizations worldwide to align business activities to the vision and strategy of...
Investment Multiple
Investment Multiple, in its core definition, refers to a metric used to evaluate the return on an investment relative to the amount of money initially invested. It is a straightforward...
Issuance of Original Securities
Issuance of Original Securities refers to the process by which a company or government entity releases new securities into the financial market to raise capital from investors. This can include...
Series A Funding
Series A Funding is a term commonly used in the context of financing startups and early-stage companies. The definition of Series A Funding refers to the first significant round of...
Equity Dilution
Equity Dilution, in its simplest definition, refers to the decrease in existing shareholders' ownership percentage of a company as a result of the issuance of new equity shares. This phenomenon...
Accounts Receivable Turnover
Accounts Receivable Turnover, a critical financial metric, is essential in assessing how efficiently a company manages its credit sales and collects payments from its clients. The definition of Accounts Receivable...
Down Round
Down Round refers to a scenario in the funding of a company where the shares are sold at a lower valuation compared to the previous financing round. This term is...
Bear Hug
Bear Hug refers to a situation in corporate finance where one company offers to buy another company's stock at a price significantly higher than its current market value. This strategy...
EBITDA
EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) may refer to a financial metric used to assess a company's operational performance by measuring its profitability before accounting for non-operating expenses....
Arm’s Length Transaction
Arm’s Length Transaction: The term "Arm’s Length Transaction" refers to a financial deal in which the involved parties act independently without one party influencing the decisions of the other. In...
Accretion
Accretion in the context of fundraising, venture capital, and private equity refers to the gradual increase in the value of an investment or financial asset over time. The meaning of...
Crowdfunding
Crowdfunding refers to the practice of funding a project or venture by raising small amounts of money from a large number of people, typically via the Internet. This method leverages...
Convertible Note
Convertible Note may refer to a type of short-term debt that converts into equity, typically in conjunction with a future financing round; generally, the investor would receive a note that...
Antidilution
Antidilution is a term primarily used in finance, specifically in the context of investments and corporate finance, and its definition pertains to measures taken to prevent the decrease in ownership...
BATNA
BATNA is an acronym that stands for Best Alternative to a Negotiated Agreement. It is a concept derived from the field of negotiation theory and serves as a measure of...
Working Capital Formula
Working Capital Formula is a fundamental financial metric used to measure a company's operational efficiency and short-term financial health. The definition of the Working Capital Formula is straightforward: it is...
Backward Integration
Backward integration is a strategic business move in which a company expands its operations by acquiring or merging with its suppliers or upstream entities in the supply chain. The meaning...
Funding Round
Funding Round refers to a distinct phase in the financial lifecycle of a company during which it seeks to raise capital from external investors. These rounds are critical for startups...
Cost of Capital
Cost of Capital refers to the minimum rate of return that a company must earn on its investments to maintain its market value and satisfy its investors. This financial metric...
Venture Capitalist
A Venture Capitalist (VC) may refer to an individual or firm that provides financial capital to early-stage, high-growth potential startups in exchange for equity or ownership stakes. The definition of...
S1 Filing
S1 Filing may refer to the filing of a Form S-1 with the U.S. Securities and Exchange Commission (SEC). Form S-1 is a registration statement used by companies that are...
Mergers and Acquisitions
Mergers and Acquisitions may refer to the consolidation of companies or assets through various types of financial transactions. A merger is a combination of two or more companies into a...
Venture Capital
Venture Capital may refer to a form of equity financing provided by private investors or venture capital firms to startup companies and small businesses that are deemed to have high...
Pitch Deck
A Pitch Deck is a presentation typically used by entrepreneurs to present their business idea to potential investors. It may refer to an organized collection of slides that present a...
Unicorn
In the contemporary lexicon of finance and startups, the term "Unicorn" may refer to a privately-held startup company that achieves a valuation of over $1 billion. The definition and meaning...
Private Equity
Private equity may refer to investments that are not publicly traded on a stock exchange. Private equity is a form of capital that private investors or firms provide to companies...