The Glossary of Private Equity and Venture Capital
The Glossary of Private Equity and Venture Capital is the perfect companion to The Encyclopedia of Private Equity and Venture Capital. It also serves as a valuable resource in its own right, with expert definitions of 325 private equity and venture capital terms. To view the definition of a term, simply click it.
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- # -
- A -
"A" Round
Accredited Investor
Accrued Interest
Acquisition
ACRS
Adjustment Condition
ADR
Advisory Board
Allocation
Alternative Assets
Amortization
AMT
Angel Financing
Angel Groups
Angel Investor
Antidilution provisions
Archangel
Asset-backed loan
Automatic conversion
Average IRR
- B -
"B" Round
Balance Sheet
Bankruptcy
Barbell Strategy
BATNA (best alternative to a negotiated agreement)
Bear Hug
Benchmarking
Best Efforts
Blue Sky Laws
Book Value
Bootstrapping
Bridge Financing
Broad-Based Weighted Average Ratchet
Brokers
Burn Out / Cram Down
Burn Rate
Business Development Company (BDC)
Business Plan
- C -
CAGR
Call Option
Capital (or Assets) Under Management
Capital Call
Capital Gains
Capitalization Table
Capitalize
Captive funds
Carried Interest
Cash Position
Catch-up
Chapter 11
Chapter 7
Chinese wall
Clawback
Closed-end Fund
Closing
Co-investment
Co-Sale Provisions or Rights
Collar Agreement
Committed Capital
Committed Funds or Raised Funds
Common Stock
Company buy-back
Consolidation
Conversion Ratio
Conversion Rights
Convertible Security
Corporate Charter
Corporate Venturing
Corporation
Covenant
Cumulative Dividends
Cumulative Preferred Stock
Cumulative Voting Rights
- D -
Deal Flow
Deal Structure
Deficiency Letter
Demand Rights
Depreciation
Dilution
Dilution Protection
Director
Disbursement
Disclosure Document
Distressed debt
Distribution
Diversification
Dividend
Down Round
Drag-Along Rights
Due Diligence
- E -
Early Stage
EBITDA
Economies of Scale
Elevator Pitch
Employee Stock Option Plan (ESOP)
Employee Stock Ownership Plan
Equity
Equity Kicker
ERISA
ERISA Significant Participation Test
Evergreen Promise
Exercise price
Exit Strategy
Exiting climates
Exits (AKA divestments or realizations)
- F -
Factoring
Final Regulation
Finder
First Close
First Refusal Rights
Flipping
Flotation
Follow-on funding
Forced Buyback
Form 10-K
Form 10-KSB
Form S-1
Form S-2
Form SB-2
Founder Vesting
Founders' Shares
Free cash flow
Full Ratchet Antidilution
Fully Diluted Earnings Per Share
Fully Diluted Outstanding Shares
Fund age
Fund Focus
Fund of funds
Fund Size
- G -
GAAP
Gatekeeper
GDR's
General Partner (GP)
General partner clawback
General Partner Contribution
Golden Handcuffs
Golden Parachute
- H -
Harvest
Hockey Stick Projections
Holding Company
Holding Period
Hot Issue
Hurdle Rate
- I -
Incubator
Information Rights
Initial Public Offering (IPO)
Institutional Investors
Intellectual property
Investment Bankers
Investment Company Act of 1940
Investment Letter
IRA Rollover
IRR
ISO
Issue Price
Issued Shares
Issuer
- J -
- K -
- L -
Later Stage
Lead Investor
Lemon
Leveraged Buyout (LBO)
Lifestyle firms
Limited Partner (LP)
Limited partner clawback
Limited Partnerships
Liquidation
Liquidation Preference
Liquidity Event
LLC - Limited liability company
Lock-up Period
Lower quartile
- M -
Management buy-out (MBO)
Management Fee
Management Team
Mandatory Redemption
Market Capitalization
Market Standoff Agreement
Merchant banking
Merger
Mezzanine Financing
Middle-Market Firms
Mutual Fund
- N -
Narrow-based weighted average ratchet
NASD
NASDAQ
NDA (Non-disclosure agreement)
Net Asset Value (NAV)
Net Financing Cost
Net income
Net IRR
Net Present Value
Net present value (NPV)
New Issue
Newco
No Shop, No Solicitation Clauses
No-fault divorce
Non-Compete Clause
Nonaccredited
NYSE
- O -
Open-end Fund
Option Pool
Original Issue Discount
OTC
Outstanding Stock
Oversubscription
Oversubscription Privilege
- P -
Paid-in Capital
Pari Passu
Participating Preferred
Participation
Partnership
Partnership agreement
Pay to Play
Penny Stocks
Piggyback Registration
PIK Debt Securities
PIV
Placement Agent
Plain English Handbook
Plum
Poison Pill
Pooled IRR
Portfolio Companies
Post-Money Valuation
Pre-Money Valuation
Preemptive Right
Preference shares
Preferred Dividend
Preferred return (AKA Hurdle Rate)
Preferred Stock
Private Equity
Private investment in public equities (PIPES)
Private Placement
Private Placement Memorandum
Private Securities
Prospectus
Put option
- Q -
- R -
Ratchet
Recapitalization
Reconfirmation
Red Herring
Redeemable Preferred Stock
Redemption
Registration
Registration Rights
Regulation A
Regulation C
Regulation D
Regulation D Offering
Regulation S
Regulation S-B
Regulation S-K
Regulation S-X
Reorganization or Corporate Reorganization
Restricted Securities
Restricted Shares
Revlon Duties
Right of First Refusal
Rights Offering
Risk
Rule 144
Rule 144A
Rule 147
Rule 501
Rule 504
Rule 505
Rule 506
- S -
S Corporation
SBIC
SBIR
Secondary funds
Secondary Market
Secondary Sale
Securities Act of 1933
Securities Act of 1934
Securities and Exchange Commission
Seed Money
Seed Stage Financing
Senior Securities
Series A Preferred Stock
Shell Corporation
Small Business Administration (SBA)
Small Business Innovation Development Act of 1982
Special purpose vehicle
Spin out
Staggered Board
Statutory Voting
Stock Options
Strategic Investors
Subordinated Debt
Subscription Agreement
Sweat Equity
Syndicate
Syndication
- T -
Tag-Along Rights / Rights of Co-Sale
Takedown Schedule
Target Multiples
Tax-free reorganizations
Tender offer
Term Sheet
Time Value of Money
Trade sale
Tranche
Treasury Stock
- U -
- V -
Venture Capital Financing
Venture Capitalist
Vesting schedules
Vintage Year
Voluntary Redemption
Voting Right
- W -
Warrant
Wash-Out Round
Weighted Average Antidilution
Williams Act of 1968
Workout
Write-off
Write-up/Write-down