- Bootstrapping: Funding a startup using personal savings and revenue generated by the business, without relying on external investments.
- Series A, B, C Funding: Successive rounds of financing as a startup grows, with each round labeled alphabetically and typically involving larger amounts of capital.
- Lead Investor: The primary investor in a funding round who sets the terms and attracts other investors to participate.
- Pro Forma Financial Statements: Financial projections that estimate how a startup's income statement and balance sheet will look in the future, often used in fundraising.
- Founder's Vesting: A contractual arrangement where founders earn their equity over time, usually with a vesting period and a cliff.
- Liquidity Event: A situation in which a startup or its investors can cash out their investments, such as through an IPO or acquisition.
- Strategic Investor: An investor who not only provides capital but also brings industry-specific knowledge, expertise, and resources to the startup.
- Advisory Board: A group of external advisors who provide guidance and expertise to the startup's management team.
- Elevator Pitch: A concise and compelling summary of a startup's business idea that can be delivered in the time it takes to ride an elevator.
- Run Rate:The annualized extrapolation of a startup's current financial performance, often used to estimate future revenue based on its recent results.
