A funding round where existing shareholders experience significant dilution. Often, the new investor(s) will gain a significant or even a controlling majority stake of the company.

Typically a group or an individual that provides advice when presented with challenges. A good trait to look for is a track-record of businesses helped through challenges.

A financial instrument that enables an individual or firm to loan money to a company, this can convert into equity at a later date (sometimes at a discount to an agreed later valuation).

An acronym that stands for Minimum Viable Product is typically the first release of a product or service that achieves the basic goals or promises to customers. This should be constantly developed and altered after feedback and further R&D is carried out

An acronym for Net Present Value. The NPV represents the total value in a potential investment opportunity.

Individuals who invest in a VC fund are known as Limited Partners

“A lead investor is the investor that bring the most capital to the table and hence, sets the terms of your round, mainly its price, its size and its share nature (eg. Ordinary, preference etc). They will often lead on the overall due diligence of the investee company (e.g. the start-up in question), the legal drafting and selection/acceptance of the other investors that may syndicate the round. After the round closes, the lead investor will often take a board and/or an observer seat to monitor their investment and to help the business grow.” Provided by: Juliette Souliman, MMC Ventures

Used to refer to investments that focus on environmental, social and good governance. This can include socially responsible investing, and sustainable investing.

A single market value of all the assets held by a client but is managed by mutual funds, venture capital firms, or brokers.

A new term that is given to relatively new firms that have a valuation of over $10 billion. See our video on Unicorn to see the difference!

A product or service that can easily be re-branded, without changing the fundamental function performed.

A process whereby both parties verify the applicable information related to a deal between said parties.