Moats are the advantages a company has over its competitors. Moat is often used to refer to the head start and infrastructure that larger, more established companies have over startups.
See Letter of Intent (LOI) and Indication of Interest (IOI).
A Managing Director is a senior partner at a VC firm.
Monthly Recurring Revenue (MRR) is the amount of revenue a company generates from recurring payments in a single month.
Multiples is a valuation method of companies. A company’s value will be expressed by multiplying certain metrics like net income or revenue and comparing them against what public and private companies’ values were with similar multiples. If a similar public […]
Major Investors are investors who own a large portion of a company’s shares and as such receive preferential rights. The amount of shares necessary to become a major investor varies among financial documents and companies.
A Majority Shareholder is a shareholder who owns more shares in the company than any other shareholder.
The Management Fee is a fee charged by fund managers to investors for the management of the investments. Most VC management fees are two to three percent of the total amount of the fund’s capital commitment.
Management Rights are often required by an investor as part of the terms of an investment into a startup, usually in order to satisfy certain ERISA requirements. Management rights may be comprised of certain information and inspection rights, board observation […]
Mandatory Redemption is an investor right to require a company to repurchase some or all of his or her shares at a future date for a given price.