Executive Summary

An Executive Summary is a short summary document, normally one to three pages, that describes material facts and strategies of a company.


Executive Managing Director (VC Firm)

An Executive Managing Director is a senior partner in a venture capital firm who is superior to a managing director or general partner.


Escrow Cap

An Escrow Cap is the amount of money in a merger that is set aside to remedy breaches of the merger agreement.


Exit Event

An Exit Event is an event where founders and early investors can sell their interest in a company for cash. An exit can be an initial public offering (IPO) or an acquisition by another company.


Exit Strategy

An Exit Strategy is a company’s plan to sell the company or undergo an initial public offering once the company has reached a certain level of success.


Earnout

An Earnout is a portion of a sale agreement whereby the sellers receive certain payments contingent on future events, typically revenue or profit milestones.


Enterprise Value (EV)

Enterprise Value (EV) is a valuation measurement determined by the sum of the long term debt of a company and its common stock’s market value, minus cash the company has on hand.


Early-Stage Financing

Early-Stage Financing refers to investments that happen early in a company’s lifecycle.


Equity Crowdfunding

See Crowdfunding.


Earnings Before Interest and Taxes (EBIT)

Earnings Before Interest and Taxes (EBIT) is an operating profit metric. The EBIT is determined by excluding interest and taxes from expenses and then subtracting those expenses from revenues. Companies’ values are often projected as multiples of EBIT.