Sophisticated Investor

Sophisticated Investors are, in essence, investors who are capable of fending for themselves in a prospective transaction. The term is most often used in the context of discussions about whether a private securities offering qualifies for an exemption from registration […]


Super Pro-Rata Rights

Super Pro-Rata Rights refers to the right of shareholders to purchase shares in a future financing equal to some multiple of the percentage they currently hold at the time of such financings.


Super Angel

A Super Angel is a very active and experienced angel investor.


Sunsetting

Sunsetting is the process of discontinuing a product, service, or business.


Structure

Structure refers to multiple liquidation preference or participation in a preferred stock. This is often found in late-stage deals.


Soft Launch

A Soft Launch is a launch that, rather than focusing on a flashy one-time event, unfolds gradually. A Soft Launch may have multiple phases in order to build buzz or beat the competition to market.


Simple Majority

A Simple Majority means more than 50% of shares or members who can vote to make a decision.


Schmuck Insurance

Schmuck Insurance are preferences, including ones that gurantee a return for an investor, especially in a situation where an investor has concerns about overpaying at a particular point in time.


SAFE

SAFE is an acronym for “simple agreement for future equity,” which is an alternative to the issuance of convertible debt.


SaaS Business

A SaaS business is one whereby software is licensed to end users from a central location, usually delivered via the web. “SaaS” stands for “software as a service” and customers are generally billed monthly. Microsoft Office 365, Dropbox, Google G […]