Priced Round

A Priced Round (or Equity Round) is any round of financing in which investors receive a set amount of equity for an agreed upon price. Contrast with Convertible Debt Round.

Product/Market Fit

Product/Market Fit is a term used to describe when a product meets an existing need within a market. In the context of startups, a Product/Market Fit is often discussed as a necessary precondition to growth.

Profit and Loss (P&L or PnL)

P&L stands for profit and loss. P&L is commonly used to refer to the P&L statement or income statement which outlines a company’s income and expenses for a given year.

Principal (VC Firm)

A Principal is a junior deal partner at a venture capital firm.


A Pivot is a wholesale change of a startup’s current business model in an attempt to capitalize on a totally different market opportunity.

Party Round

A Party Round is a financing round with many participants, usually at small dollar amounts.


Pro-Rata means proportional. For instance, if investors have a pro-rata Right of First Offer, then that means each investor will have a right to purchase new securities in proportion to their ownership. I.e. if an investor owns 5% of a […]

Put Right

A Put Right is a purchased option to sell a certain amount of a security at a fixed price back to the option seller before a certain date.


See Carried Interest.

Proprietary Rights

Proprietary Rights are property rights that only the owners of the property possess.