Disrupting disruption with disruptive disruptions since 2010.
The sacred privilege granted to investors allowing them to maintain their ownership percentage in future funding rounds by ponying up more cash. It's like a VIP pass that lets you keep throwing money at a company before it becomes wildly successful or spectacularly flames out.
A non-binding document outlining the key terms of an investment deal—think of it as a letter of intent that's about as reliable as a Tinder profile. The real fun begins when lawyers turn these bullet points into a 60-page agreement.
A chair at the table where actual company decisions get made, typically negotiated by lead investors who want control over their millions. Where strategy is debated, CEOs are fired, and founders learn they don't actually run their company alone.
Special privileges allowing certain LPs to invest additional money directly into specific portfolio companies alongside the fund, usually with lower or no fees. The VIP backstage pass of venture investing.
Having the qualities of someone who starts businesses, takes risks, and believes their idea will totally disrupt an industry despite statistical odds suggesting otherwise. It's the adjective form of optimistic delusion mixed with genuine innovation and an unhealthy comfort with uncertainty. Basically, it describes people who see opportunities where normal humans see reasons to keep their day job.
A venture fund structure where capital commitments are made quarterly rather than in one large closing, allowing GPs to start investing immediately. The subscription model comes to venture capital.
The rate at which investment opportunities come across a VC's desk. Good deal flow means seeing quality startups before everyone else; bad deal flow means getting pitched by anyone with a Squarespace website and a dream.
The speed at which a startup moves from inception to market dominance within its category. The term is sometimes used when discussing execution speed and competitive moats simultaneously.
Capital set aside by a VC fund to support existing portfolio companies in future rounds. The difference between investing in 20 companies and actually having money to help the 2-3 that work.
Loans provided to venture-backed startups, typically secured by assets or future funding rounds. It's called 'non-dilutive capital,' which really means 'you'll dilute yourself later when you can't pay it back.'
The speed at which a venture fund moves through its investment cycle, from raising capital to deploying it to returning capital to LPs. Faster isn't always better—ask anyone who inhaled their food and got heartburn.
Aggressively pursuing market share and user growth at the expense of profitability or unit economics, betting that dominance now will create a moat later. It's monopoly thinking fueled by venture capital.
When a startup prioritizes acquiring recognizable brand-name customers purely for credibility, even if those deals are unprofitable or unsustainable. It's the corporate equivalent of name-dropping at parties.
The strategy of perfecting product-market fit and unit economics in one market before expanding broadly. It's the anti-blitzscaling approach that prioritizes learning over land grabbing.
The practice where investors force a startup to create or expand the employee option pool before a funding round, effectively diluting founders rather than new investors. It's a clever way to pay employees with founder equity.
Emergency financing raised by a struggling startup at unfavorable terms just to avoid immediate shutdown. It's the fundraising equivalent of pulling the ripcord on a failing skydive.
An anti-dilution mechanism that adjusts an investor's equity stake if the company raises money at a lower valuation, protecting them from down rounds. Full ratchet is brutal; weighted average is gentler.
The exhausting process of pitching multiple venture capital firms on Sand Hill Road in Menlo Park, often receiving similar feedback and soft rejections. It's speed dating for capital, and you're getting ghosted.
The corporate buzzword for 'doing something new' that appears in every mission statement and keynote presentation. To innovate is to revolutionize or introduce novelty, though in practice it often means adding an app to something that worked fine without one. Companies that claim to innovate daily are usually just iterating on someone else's idea with a slightly different shade of blue.
The adjective slapped on every product, service, and startup pitch deck to signal 'we're doing something allegedly new.' Something innovative is supposed to be groundbreaking and forward-thinking, though these days it often means 'we added AI to it.' If your company isn't innovative, you're basically admitting you're stuck in 2005 with a flip phone.
A provision in IPO underwriting allowing underwriters to sell additional shares if demand exceeds expectations, typically up to 15% more. Named after the first company to use it, because finance people hate straightforward names.
Revenue minus cost of goods sold, expressed as a percentage—the fundamental measure of whether your business model makes sense before accounting for all those pesky operating expenses. VCs want this above 70% for SaaS.
Lifetime Value—the total revenue a customer generates before churning, which you compare against acquisition cost to pretend your business makes sense. Usually wildly optimistic because it assumes customers stick around forever.
Investment structured to release capital in tranches as the company hits specific targets, giving investors control and founders ulcers. Trust, but verify, but mostly don't trust.