Startup Fundraising Glossary

Navigate the world of startup financing with confidence

Explore a glossary of essential terms in startups, startup fundraising, bootstrapping and entrepreneurship. Decode the terminology and jargon with ease.

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Golden ShareGolden Share is a type of share that gives its shareholder veto power over changes to the company`s charter, controlling the outcome of certain decisions and protecting minority shareholders in a startupGood Faith EstimateGood Faith Estimate is an estimate provided to borrowers detailing loan costs, including interest rates and fees, encountered by startups when securing financingGoodwillGoodwill is an intangible asset that arises when a company is acquired for more than the fair value of its net identifiable assets, reflecting brand value, customer relationships, and intellectual property for startupsGovernanceGovernance is the framework of rules and practices by which a board of directors ensures accountability, fairness, and transparency in a company`s relationship with all its stakeholdersGrantGrant is a financial award given by a government, corporation, foundation, or trust to fund a specific project or venture, attractive for startups as they do not require repayment or equity dilutionGrant Funding StrategiesGrant Funding Strategies are approaches and tactics used by startups to identify, apply for, and secure grant funding from governmental bodies, non-profit organizations, and other entities offering financial support without requiring equity in returnGreen InvestingGreen Investing involves investing in companies that produce or support the production of environmentally friendly products and services, including renewable energy and green technologiesGreen StartupsGreen Startups are companies focused on environmentally sustainable business practices, products, or services, often attracting specific types of investors interested in eco-friendly venturesGreen TechGreen Tech is technology aimed at creating products and services that are environmentally friendly, with startups in this sector often attracting investment for their potential to address ecological challengesGreen Tech InvestmentsGreen Tech Investments is financing directed towards startups focused on developing technology solutions for environmental sustainability, including renewable energy, waste reduction, and conservation projectsGrindGrind is the process of working tirelessly on your startup, often for long hours with little immediate reward, in pursuit of long-term successGross Burn RateGross Burn Rate is the total amount of money a startup spends per month before generating any revenue, key for understanding the company`s cash flow and financial sustainabilityGross MarginGross Margin is a company`s total sales revenue minus its cost of goods sold, divided by the total sales revenue, expressed as a percentage, measuring the efficiency of productionGross Profit MarginGross Profit Margin is a financial metric that calculates the percentage difference between a company`s net sales and the cost of goods sold, reflecting the efficiency of production and pricing strategiesGross RevenueGross Revenue is the total revenue generated from all sources before deductions for costs and expenses, indicating a startup`s overall financial intakeGross Sales AnalysisGross Sales Analysis is the examination of the total sales revenue of a startup before any deductions, providing insights into the overall market demand and pricing strategy effectivenessGrowth CapitalGrowth Capital is capital invested in a company to accelerate its growth and expansion, often provided by late-stage VCs or private equity investors, used to enter new markets, increase production, or enhance product developmentGrowth EquityGrowth Equity is a type of private equity investment, usually a minority investment, in relatively mature companies that are looking for capital to expand or restructure operations, enter new markets, or finance a significant acquisitionGrowth Equity vs. Venture CapitalGrowth Equity vs. Venture Capital is a comparison between two types of financing; growth equity focuses on more mature startups with proven business models, while venture capital typically invests in early-stage companies with high growth potentialGrowth FinancingGrowth Financing is funding obtained specifically to fuel the growth phase of a startup, including expanding operations, entering new markets, or scaling the teamGrowth ForecastingGrowth Forecasting is the process of estimating a startup`s future growth in terms of revenue, user base, market share, etc., based on historical data, market trends, and other factorsGrowth FundGrowth Fund is an investment fund that primarily invests in companies with the potential for above-average growth, often focusing on startups and emerging industriesGrowth HackingGrowth Hacking is a marketing technique developed by startups to use creativity, analytical thinking, and social metrics to sell products and gain exposureGrowth LeversGrowth Levers are key factors or actions that can significantly impact a startup`s growth trajectory, such as market expansion, product innovation, strategic partnerships, and optimization of sales and marketing channelsGrowth MarketingGrowth Marketing are marketing strategies focused specifically on acquiring more engaged users, involving experiments and data-driven approaches to optimize the full customer lifecycleGrowth MetricsGrowth Metrics are key performance indicators that measure a startup`s growth in areas such as revenue, user base, market share, etc., over timeGrowth ProjectionsGrowth Projections are estimates of a company`s future financial performance, including sales, revenue, and market share, critical for attracting investment and planning scaling operationsGrowth RateGrowth Rate is the measure of a company`s increase in revenue, user base, or market size over a specific period, indicating its expansion speed and potential for scalabilityGrowth StageGrowth Stage is a phase in a startup`s lifecycle when it has successfully proved its concept, is generating consistent revenue, and seeks to expand its market presence, often through additional rounds of fundingGrowth-Driven DesignGrowth-Driven Design is a website design strategy that is iterative and based on data, involving continuous learning and improvements, focusing on maximizing user engagement and achieving business goalsGuaranteed ReturnsGuaranteed Returns is a promise of a specific financial return on an investment, rare in venture capital and angel investing due to the risky nature of startupsGuarantorGuarantor is an individual or entity that agrees to be responsible for another`s debt or performance under a contract, if the original party fails to meet their obligations, often needed by startups for leases or loansGuaranty AgreementGuaranty Agreement is a legal document where a guarantor agrees to fulfill the obligations of a debtor to a lender, in case the debtor fails to do so, serving as a form of security for startups to obtain loansGuerrilla MarketingGuerrilla Marketing are unconventional marketing tactics designed for startups and small businesses to achieve maximum exposure on a limited budget, focusing on creativity and innovationHacker CultureHacker Culture is a community and mindset valuing creative problem solving, open exchange of ideas, and the free modification of software to improve performance, often associated with tech startups and innovation.Hacking GrowthHacking Growth is a process focused on rapid experimentation across marketing channels and product development to identify the most effective, efficient ways to grow a business. It leverages data, technology, and innovative marketingHands-on InvestorHands-on Investor is an investor who takes an active role in the management and decision-making processes of a startup, providing not just capital but also expertise, mentorship, and access to networks.Hands-On ManagementHands-On Management is an active approach to management where leaders are directly involved in the operations and decision-making processes of the startup, often necessary in early stages and during periods of significant change.Handshake AgreementHandshake Agreement are informal agreements based on mutual trust between parties, without written contracts, often used in early stages of startup partnerships or negotiations.Hard CapHard Cap is the maximum amount of capital a startup aims to raise in a funding round, beyond which no additional investments will be acceptedHarvest StrategyHarvest Strategy is a plan for how the founders and investors of a startup intend to exit and realize their investments, such as through a sale or initial public offering (IPO)Heterogeneous FundingHeterogeneous Funding is a funding approach that involves securing capital from a variety of sources, including but not limited to angel investors, venture capital, grants, and crowdfunding, to mitigate risks and leverage different networks.Hierarchy of InvestorsHierarchy of Investors is the order of priority among investors in terms of rights, preferences, and returns, usually established in the terms of investment agreementsHigh Net Worth Individual (HNWI)High Net Worth Individual (HNWI) is an individual with significant personal financial assets, with many angel investors falling into this category, providing startups with capital in exchange for equity.High-Growth VenturesHigh-Growth Ventures are startups with the potential and ambition to grow significantly in terms of revenue, market share, or employee numbers, often attracting venture capital investmentHiring AutomationHiring Automation is the use of software to automate aspects of the recruitment process, such as screening resumes and scheduling interviews, helping startups to efficiently scale their teams.Hiring IncentivesHiring Incentives are financial or other benefits offered to attract and retain key employees in a startup, such as stock options, bonuses, and flexible working conditionsHiring PlanHiring Plan is a strategic plan outlining a startup`s staffing needs over a specific period, including roles, numbers of positions, and timelines for recruitment, crucial for scaling operations and managing growth effectively.Hockey Stick GrowthHockey Stick Growth is a pattern of growth where a startup experiences a period of stagnation followed by a sudden and extremely rapid growth, depicted graphically as a line that suddenly turns upwards like a hockey stickHockey Stick ProjectionHockey Stick Projection are financial projections that show slow growth initially, followed by a rapid increase in revenue, often used by startups during fundraising to illustrate potential growth to investors.