Funding & Investment

An individual who invests personal funds in early-stage startups.

Protection that adjusts investor ownership if shares are issued later at a lower price.

Short-term funding between major rounds to extend runway.

Debt that converts into equity in a future round, often with a discount and cap.

Reduction in ownership percentage when new shares are issued.

A conversion discount given to early investors at the next round price.

A funding round at a lower valuation than the previous round.

Additional investment by existing investors in later rounds.

General Partner: manages the fund and makes investment decisions.

The investor who sets terms and commits the largest amount in a round.

Investor right to get paid first in an exit, usually a multiple of investment.

Limited Partner: an investor in a fund who provides capital but doesn’t manage it.

Company value after new investment is added.

Company value before new investment is added.

Very early funding to validate the idea and build an MVP.

Share class with special rights (preferences) often issued to investors.

A funding round with an explicit company valuation and share price.

Simple Agreement for Future Equity: converts into shares in a future priced round.

An early fundraising round to build initial product and traction.

A funding round to scale go-to-market after early traction.

Special Purpose Vehicle used to pool investors into one entity on the cap table.

A group of investors who invest together in a deal.

A maximum valuation used to convert a SAFE/note, rewarding early investors.

Institutional investing in high-growth startups in exchange for equity.