Valuation is the process of determining a company’s worth. Valuations can be determined as multiplies of the company’s metrics or comparisons to other companies that recently valued at certain amounts.
Venture-Backed Startups are startups receiving venture capital funding. Most companies do not receive venture capital in early rounds of financing until they have proved the company is viable.
Venture Capital is capital provided by investors to startups. Startups are inherently risky due to their likelihood of early failure. Because of the high risk, investors may achieve greater returns.
Venture Capital Funds are investment funds that invest in startups and seek high returns in exchange for the risky nature of investing in startups.
A Venture Capitalist (VC) is a person whose job is investing in startups – a professional investor, so to speak. Venture capitalists work for venture capital firms.
Venture Debt is a bank lending to startups. Because startups are so risky, they generally do not qualify for traditional bank loans until much later in their life cycle. There are, however, a handful of banks who will lend to […]
Vested refers to the amount of equity that a recipient (i.e. an employee) owns and is no longer subject to forfeiture. Typically, stock options “vest” as the employee continues her employment with a startup, meaning that the employee can now […]
Vesting is the period of time that securities (usually stock options) may be subject to forfeiture or repurchase based on meeting certain time or milestone criteria. Vesting co-founder equity helps to protect the company’s equity – so that a departing […]
A Vesting Schedule is the timeline over which a stock recipient’s equity (usually stock options) vests. The typical vesting schedule is four years with a one year cliff. See Four Years with a One Year Cliff.
Vintage Year is the year a VC fund first started investing.