At-Will Employee

An At-Will Employee is an employee who does not have an employment agreement and can be terminated by the company for any reason.


Associate (VC Firm)

An Associate is a person at a venture capital firm who is involved in deal analysis and management. The seniority of this position varies by firm, but generally associates need a partner to support their activities.


Analyst (VC Firm)

An Analyst is a very junior person at a venture capital firm, often a recent college graduate.


Alpha Testing

Alpha Testing refers to internally testing a pre-production model of a product, typically on a controlled basis, to work out the kinks without anyone else seeing it.


Annual Recurring Revenue (ARR)

Annual Recurring Revenue (ARR) is the amount of revenue a company generates from recurring payments over a year.


Anti-Dilution

Anti-Dilution refers to a right, usually requested by investors purchasing preferred shares, to protection against future rounds whereby securities are sold at a lower price than the current round. There are several types of anti-dilution. See also Broad-Based Weighted Average, […]


Authorized Shares

Authorized Shares refers to the number of shares authorized by a corporation, which is the most shares that the corporation can issue. This number is set forth in the corporation’s state formation documents and must be amended when the corporation […]


Accelerator

An Accelerator is a program whose intent is to “accelerate” the development of startups. Typically an accelerator will last one to three months and aims to provide support to startups through small amounts of seed capital, mentoring, training, and events […]


Automatic Conversion

Automatic Conversion refers to a term found in convertible promissory notes (same as convertible debt) whereby the note will automatically convert into equity upon the occurrence of certain events, i.e. a next round financing or maturity. Note that automatic conversion […]


Advisory Board

An Advisory Board is less formal than a startup’s board of directors. An advisory board typically consists of people whose experience, knowledge, and influence can benefit the growth and direction of the startup.