Lexicon for Entreprenuers
An interactive dictionary of industry specific phrases, jargon, and nomenclature.
The Lexicon for Entrepreneurs introduces entrepreneurs to terms and concepts used in their transactions, acting as an easily accessible resource for business owners and the like when they come across unfamiliar phrases or terminology. These terms may change as applicable law and custom matures.
The first step in buying a small business, finding companies that are for sale at a reasonable price and that match the characteristics you want.
An employee who can be terminated by a company for any reason.
A venture capital employee involved in deal analysis and management.
The right of a preferred shareholder to transfer its shares to an affiliated entity without company consent.
Looking at the equity base of the company assuming that all preferred stock has been converted to common stock.
Articles of Incorporation
A legal document filed with the state to formally create a corporation. It outlines the company's purpose, structure, and initial shareholders.
A method of dispute resolution where parties agree to have their conflicts resolved by a neutral third party (an arbitrator) instead of going to court.
A mechanism that adjusts the conversion price of convertible securities to protect investors from dilution in the event of a down-round financing.
An individual who provides early-stage funding to startups in exchange for equity ownership.
Amendment and Waiver
Outlines the process for amending or waiving terms in the certificate of incorporation.
A junior staff member at a venture capital firm, often a recent college graduate.
Terms that debt enders use to better align the debt with the capital strategy of the company.