Speak Like a Venture Capitalist (Glossary)

1. Speak Like a Venture Capitalist (Glosary)
• Startup is a company that is in the initial stages of business.
• Term Sheets outline key terms of an investment. It is typically negotiated between the VC firm and the startup company before the final investment agreement is
signed.
• Venture Capital is a form of private equity financing used to fund companies and entrepreneurs at the early stages of their venture, focused on investing in early-
stage, high-growth startups. VC firms provide funding to these startups in exchange for an ownership stake (equity). Their goal is to help these startups grow and
succeed by providing capital, expertise, and guidance.
• Venture Capitalist is essentially a capital allocator - someone who takes money from one party and allocates it to another. It’s important to understand ways in
which capital is invested in companies as a whole and what part Venture Capital plays in the ecosystem.
• Venture Capital firm are firms that invest in early-stage or emerging companies with high growth potential. These firms provide funding to startups and small
businesses in exchange for equity in the company.