Disrupting disruption with disruptive disruptions since 2010.
A fancy term for someone who invests in or undertakes risky business ventures, particularly in the startup ecosystem where optimism meets capitalism. These bold souls throw money and energy at unproven business ideas, hoping to strike gold before bankruptcy strikes them. It's like being an explorer, except instead of discovering new lands, you're discovering new ways to burn through Series A funding.
A PowerPoint presentation optimized for skimming, typically 10-15 slides explaining why your startup will change the world and only needs $2M to do it. It's fiction dressed up as financial projections.
The percentage of a VC fund's investments that return zero, typically 50-70% despite everyone's confident pitches. The number partners don't mention at LP meetings unless forced.
A toxic funding structure where conversion price drops as stock price falls, creating a downward spiral that destroys equity value. The financial equivalent of quicksand—struggling only makes it worse.
The percentage of a company a VC aims to own to make an investment worthwhile relative to their fund size. It's why large funds often can't invest in your seed round—they need bigger slices.
In startup-land, it's the art of nursing a half-baked business idea in a controlled environment with free coffee and ping-pong tables until it either hatches into a unicorn or expires quietly. Literally borrowed from the egg-warming business, because apparently founders need the same level of coddling as baby chickens. This metaphorical brooding period involves providing ideal conditions (mentorship, funding, ramen) while the startup grows its feathers.
Large corporations that businesses try to sell to—known for 9-month sales cycles, multiple stakeholder sign-offs, and IT departments that say 'we'll think about it' for years.
Simple Agreement for Future Equity—a Y Combinator innovation that lets startups take money now and figure out the valuation later. 'Simple' is debatable; some lawyers call them 'complex convertible debt without the debt.'
Additional money invested in a portfolio company after the initial round—either because things are going great and you want more ownership, or things are terrible and you're protecting your original investment. Hope and desperation look surprisingly similar.
A startup that a VC firm has invested in, now living in their collection like a Pokémon card. Each firm has dozens, knowing most will fail but hoping one becomes a legendary holographic Charizard.
The lower compensation that employees accept to work at mission-driven startups or in attractive industries like gaming or entertainment. Employers exploit your dreams to underpay you.
The cultural expectation in startup ecosystems that successful entrepreneurs and investors should help newcomers, supposedly creating a virtuous cycle. In practice, it's often networking disguised as altruism.
An investment strategy of making many small bets across a wide portfolio, hoping a few massive winners will compensate for numerous failures—essentially portfolio construction as gambling. The scatter-shot approach favored by funds who believe they can't predict winners.
The first real money a startup receives from external investors, typically ranging from $500K to $2M, given in exchange for equity to entrepreneurs brave (or delusional) enough to think their idea will change the world. This is the stage where your pitch deck matters more than your product, and your co-founder's LinkedIn connections matter more than your revenue. Named 'seed' because most of these investments will never grow into anything, much like actual seeds.
A valuation metric calculated by dividing company valuation by annual revenue, popular in tech because it works even when profits are mythical. Allows investors to justify astronomical valuations by citing "industry standards."
Options for investors to purchase additional equity at a predetermined price, typically sweetening deals when a startup is desperate or when investors have serious FOMO about missing upside. The financial equivalent of a rain check.
A funding round at a lower valuation than the previous round, signaling either terrible execution or terrible timing. Triggers anti-dilution provisions and existential crises among founders.
The power to vote on corporate matters, typically held by common stock and sometimes special classes of preferred stock. Theoretically democratic, practically controlled by whoever wrote the term sheet.
Short for 'carried interest'—the percentage of fund profits that goes to VCs as performance compensation, typically 20%. It's why venture capitalists drive Teslas even when most of their portfolio is worthless.
The percentage of a VC fund set aside for follow-on investments in existing portfolio companies. The math that determines whether your investor can actually support you in the next round or just awkwardly watch.
Serviceable Addressable Market—the portion of TAM you can realistically reach with your business model and resources; basically TAM divided by reality.
How much you spend to gain one customer—a depressing metric that determines whether your unit economics work at all.
A clause ensuring investors get their money back first when the company sells or dies—like having a reserved lifeboat while founders and employees fight over pool floaties. Can be 1x (reasonable) or 3x (predatory).
A calculation of ownership percentages that includes all possible shares—options, warrants, convertible notes, and that napkin the founder signed in 2009. The number that reveals how little of the company you actually own.