Terminology
Here are some useful terms and definitions for managing your company’s equity and finance. Read more about the common terms for use in your company.
- 3-Year Cliff or 4-Year Cliff
- 409A Valuation
- 83b Election
- Accelerator
- Accredited investors
- Alternative Minimum Tax (AMT)
- Angel Investor
- Authorized Shares vs. Issued Shares
- Board meeting
- Burn rate explanation
- Cap Table
- Cap Table for Pre Series A
- Cap Table in Excel
- Cliff vesting
- Co-Sale Agreement
- Conversion Ratio
- Convertible Note Cap
- Convertible Notes
- Difference between Common and Preferred stock
- Dilution
- Double Trigger Acceleration
- Electronic shares
- Employee stock purchase plan (ESPP)
- Equity compensation
- Exercising Employee Stock Options
- FAST Agreement
- Fair Market Value (FMV)
- Fully diluted shares
- How does a cap table work?
- IRC 409A
- Incentive Stock Options (ISO)
- Incubator
- Issuing Shares
- KISS
- Liquidity Event
- Liquidation preference
- Lock-up Period
- LTM (Last Twelve Months)
- Managing Shares
- Material Event
- Minimum Viable Product (MVP)
- Non-qualified stock options (NSO)
- NTM (Next Twelve Months)
- Organization Chart
- Pre-money valuation
- Restricted Stock Units (RSU)
- Right Of First Refusal
- Right of First Offer
- Reverse Stock Split
- SAFE
- Scenario modeling
- Seed funding
- Series A, B, C, D Funding
- Single Trigger Acceleration
- Startup Valuation
- Stock Appreciation Rights (SAR)
- Stock Options
- Stock Split
- Term sheet
- Term sheets guide
- The difference between Electronic Share and PDF or Paper Share Certificate
- Transfer shares – Secondary Transactions
- Venture Capitalist (VC)
- Vesting
- Warrants
- Waterfall analysis
- What does pre money valuation mean?
- What does the dilution mean and example
- What is a Clean Cap Table?
- What is a fully diluted cap table?
- What is Business Valuation Date
- What is stock expensing and how is it done? ASC 718 (123R)
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