Disrupting disruption with disruptive disruptions since 2010.
A governing body that theoretically oversees your startup but mostly just attends meetings and questions your decisions, led by the investors who own significant stakes.
Raising capital from numerous small investors through online platforms, democratizing access to startup investment and the opportunity to lose money on early-stage companies. Kickstarter, but instead of getting a T-shirt, you get illiquid securities.
What investors claim your company is worth before they invest—a number that's actually meaningless but gets thrown around in press releases. Add the investment amount to get post-money, which is what your ownership percentage is actually based on.
An IRS-mandated appraisal of your company's common stock price, required so employees don't accidentally commit tax fraud when exercising options. It's always mysteriously lower than what you tell investors your company is worth.
When a company acquires a startup primarily to shut it down and eliminate competition, rather than to integrate talent or technology. It's the evil twin of acqui-hire where everyone loses except the shareholders.
An entrepreneur who returns to start another company after their previous venture was acquired or failed. They're either gluttons for punishment or genuinely addicted to the startup lifestyle.
The contractual right of existing investors to lead or participate in the next funding round before the company can seek outside investors. It's a first-look deal built into your cap table.
An operating style where founders maintain deep involvement in company details rather than delegating everything to managers. Popularized by Paul Graham as a counterpoint to conventional management wisdom that says CEOs should stay hands-off.
The amount of predictable revenue a SaaS company makes yearly—the metric that determines whether you're 'growth' or 'dead.'
The hierarchical order in which different classes of investors get paid during an exit, determined by liquidation preferences from multiple funding rounds. It's a legal game of Jenga where common stockholders usually lose.
The right to participate in future financing rounds to maintain ownership percentage, preventing dilution through passive-aggressive legal provisions. Pro rata rights by another name, somehow more intimidating.
Investment opportunities sourced through unique channels rather than pitch competitions and cold emails, giving VCs the illusion they've discovered something competitors haven't. Usually just means they have better interns.
The magical realm where scientists play God with DNA and investors play roulette with their portfolios. Short for biotechnology, it's the industry that promises to cure cancer, extend your lifespan, and justify obscene R&D budgets—all while burning through cash faster than a lab incinerator. Whether it's CRISPR gene editing or synthetic biology, biotech is where biology meets business and hope meets hype.
A product development organization obsessed with shipping features rather than solving customer problems or delivering value. The startup equivalent of a hamster wheel—lots of motion, no actual progress.
An experienced entrepreneur or advisor, typically older, who's seen multiple technology cycles and startup failures. They provide wisdom, pattern recognition, and constant reminders that everything has been tried before.
The continuous addition of new features to a product beyond its original scope, usually resulting in bloated, confusing software that pleases no one. The disease killing promising MVPs since software began.
A provision allowing limited partners to reclaim previously distributed carried interest from GPs if later losses reduce overall fund returns. The nightmare scenario keeping fund managers up at night.
Late-stage debt or hybrid securities used to bridge the gap between venture rounds and an exit. It's called mezzanine because it sits between the ground floor (equity) and penthouse (IPO).
The internal process VCs use to rank portfolio companies or investment opportunities from best to worst. A forced ranking system that ensures someone always gets picked last for dodgeball.
Past tense of churning, describing customers who've abandoned ship or accounts that have been excessively traded for commissions. In the startup world, it's the past tense of failure—these are the users who tried your product and decided literally anything else was better. When your investors ask about churned customers, it's never a fun conversation.
A startup's dream scenario where it becomes a public company and founders finally get to sell their stock—statistically less likely than winning the lottery.
The magical moment when stock options or retirement contributions officially become yours to keep, transforming from corporate dangling carrot into actual ownership. It's the golden handcuffs' lock clicking shut, ensuring you'll think twice before rage-quitting. The startup world's version of 'you must be this loyal to ride this rocket ship.'
Someone who attends board meetings but lacks voting rights, typically a junior investor or potential future investor. They're flies on the wall with NDAs and calendars full of meetings they can't influence.
Any transaction that transfers majority ownership or control of a company, typically triggering various contractual provisions like vesting acceleration, payment obligations, or approval rights. The legal definition of when your startup stops being yours.