Disrupting disruption with disruptive disruptions since 2010.
The reduction in ownership percentage when additional shares are issued, especially painful in a down round where new shares are issued at a lower price. Watching your equity stake shrink while your company's value simultaneously decreases.
When a company or investor offers to buy shares from existing shareholders at a set price, providing liquidity without a full exit. A release valve for the equity pressure cooker.
Selling existing shares to other investors rather than the company issuing new shares, allowing early shareholders to get liquid without diluting anyone. The financial equivalent of sneaking out the back door.
An overflowing supply of something (capital, resources, talent) that theoretically makes life easier but usually just creates new problems and decision paralysis.
The mathematical reality that in venture capital, one or two investments generate nearly all the returns while the rest are mediocre or dead. Why VCs can lose money on 90% of their portfolio and still return 3x the fund.
The VC's cut of investment profits, typically 20% of gains above a certain return threshold. How general partners get rich while limited partners provide the actual money—the ultimate performance fee.
The art of turning literally anything—your attention, your data, your grandmother's cookie recipe—into cold hard cash, typically by inserting ads or charging subscription fees. It's what happens when tech companies realize that 'free' products need to pay the bills somehow, usually by selling your eyeballs to advertisers. Essentially, if you're not paying for the product, someone's monetizing you.
A financing round where new investors impose harsh terms on existing shareholders who lack the votes to block it. It's democracy in action, if democracy meant 'whoever has the most money wins.'
A provision requiring existing investors to participate in future funding rounds or lose their special privileges. The venture capital equivalent of 'use it or lose it.'
A company that owns and controls every layer of its product or service delivery, from manufacturing to customer experience, rather than relying on existing infrastructure or platforms. It's vertical integration for the startup age.
The company valuation publicly announced or reported in the press, which may differ from the effective valuation once liquidation preferences and other terms are factored in. It's the Instagram filter for startup valuations.
Excess stock options or debt that will dilute existing shareholders, hanging over the cap table like a financial storm cloud. Future pain that everyone pretends isn't there.
A capital efficiency metric calculated as net burn divided by net new ARR, measuring how many dollars a company incincinerates to generate each dollar of recurring revenue. A burn multiple under 1.5x suggests efficiency; above 3x suggests a bonfire of investor capital.
A corporate entity investing for business reasons beyond pure financial returns, bringing industry expertise and potential partnerships along with capital. Either your best ally or a Trojan horse gathering intelligence for a future competitive assault.
A deferred payment structure in an acquisition where sellers receive additional money only if the business hits specific milestones post-sale. It's how acquirers say 'we believe your projections!' while quietly not paying for them upfront.
A pejorative term for investors who swoop in during distressed situations to extract maximum value at founders' expense. The same people who call themselves 'value investors' on their websites.
A startup incubator or accelerator where fledgling companies are artificially nurtured in batches, given standardized advice, and released into the wild to either soar or become someone's acqui-hire. Like its fish farm counterpart, success depends on carefully controlled conditions, periodic feeding (of capital), and accepting that most won't make it to maturity. The industrial approach to entrepreneurship for founders who enjoy being treated like salmon.
In startup culture, to gradually earn ownership rights to company equity over time (usually 4 years), ensuring employees don't just grab the cash and run.
Emergency funding meant to tide a startup over until the 'real' funding round happens, often at desperate terms. Named after a bridge because you're hoping it doesn't collapse before you reach the other side.
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.
Also called tag-along rights, these allow minority shareholders to join a sale transaction if majority holders are selling their shares. The 'if you're abandoning ship, I'm coming too' clause.
Preferred stock that gets both its money back first AND participates in remaining proceeds with common stockholders. The 'have your cake and eat it too' of liquidation preferences.
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.
A venture fund typically under $50M that invests small checks in very early-stage startups. They offer founder-friendly terms and actual attention, mainly because they can't afford fancy offices or ignore their investments.