Rolling Close

A Rolling Close is a fundraising structure that is not limited by a predetermined value and allows a company to receive investments on an ongoing basis. After an initial investment closing, additional investors are allowed to invest in the same […]


Runaway Valuation

A Runaway Valuation is a valuation that soars due to illogical reasons (i.e. unjustified investor demand for a hot startup). Runaway valuations can be harmful to the next funding round, or set a future valuation target that is untenable.


Rolling Launch

A Rolling Launch is a launch in which a startup follows a carefully laid plan of outreach activities during the weeks before and after the actual event. A Rolling Launch may include making the product available to industry influencers in […]


Ramen-Profitability

A startup reaches Ramen-Profitability when it is making enough money to cover costs and living expenses for its staff.


Right of First Offer (ROFO)

The Right of First Offer (ROFO) is a contractual obligation by the owner of an asset to negotiate the sale of the asset with the rights holder before offering sale of the asset to any third parties. In the context […]


Right of First Refusal (ROFR)

The Right of First Refusal (ROFR) is a contractual right for companies to purchase any shares that shareholders want to sell before the shares are offered to outside buyers.


Right of Rescission

The Right of Rescission is a shareholder’s right to rescind its investment agreement forcing the company to return the investor’s investment in full in exchange for the company’s shares.


Rights of Co-Sale with Founders

Rights of Co-Sale with Founders is a clause VC funds often want in investment agreements because it allows the fund to sell its shares at the same time as founders if the founders choose to sell their shares.


Risk Tolerance

Risk Tolerance is the level of risk an investor is comfortable with as the investor seeks investments.


Road Show

A Road Show is a company presenting its pitch deck in many cities attempting to raise capital.