IMPORTANT START-UP VOCABULARY

Angel Investors: An investor primarily involved in early start-up investment. Often, a one-off investment, made by family or friends, to help a start-up founder get a project up and running, or a cash injection to help a business weather through a difficult period.

IPO: Known as an initial public offering, an IPO is the first share offer made by a company to the public. This involves listing stock/shares on a stock exchange, where the public can buy a portion of a company for an agreed price. This price varies based on market forces on a daily basis.

Series Investments: A naming convention of investment rounds (Series A, Series B, etc.) Each round can fulfil a different function. Earlier rounds will be focused on establishing a company, while later rounds will revolve around expanding a company, brand, product, or service.

Seed Funding: A model of funding where investors provide money to seed a business, giving it enough to operate for a short period of time; if it shows promise, subsequent investments may be offered.

Venture Capitalist: An investor who supplies capital to small companies and start-ups in order to help them grow into profitable businesses. In some cases, this will be carried out as a venture capitalist fund (or group) in which, many venture capitalists have collected their money together into a pool in order to reduce the risk.

Common Stock: Represents company ownership. Shares allow their owners to vote on corporate policy and to have a say on serving directors. If liquidation or a sale should occur, common stock owners are paid an amount only after bond owners and preferred stockholders.