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Lexicon for Entreprenuers

Emerging Companies

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. 



A program intended to mentor founders and accelerate the growth and success of a startup company

Accredited Investor

A person who is permitted to invest in startups and other high-risk private company securities based on the net worth and income level of the potential investor.


A transaction between two companies where one is buying the other.

Adverse Change Redemption

A type of redemption right whereby a shareholder gets the right to redeem his shares if something adverse happens to the company.


People who advise startup companies. Normally, these people are paid some sort of compensation for their efforts.

Affirmative Covenants

Action that the company promises to take during the term of the financing contract in a financing.

Agency costs

The costs associated in an agency / principal relationship that the principal incurs either directly or indirectly.


The earliest prototype of a product.

Amendment and Waiver

Outlines the process for amending or waiving terms in the certificate of incorporation.

Amortization Terms

Terms that debt enders use to better align the debt with the capital strategy of the company.


A junior staff member at a venture capital firm, often a recent college graduate.

Angel Investor

An individual who provides early-stage funding to startups in exchange for equity ownership.

Anti-Dilution Provision

A mechanism that adjusts the conversion price of convertible securities to protect investors from dilution in the event of a down-round financing.


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.

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.

As-Converted Basis

Looking at the equity base of the company assuming that all preferred stock has been converted to common stock.


The right of a preferred shareholder to transfer its shares to an affiliated entity without company consent.


A venture capital employee involved in deal analysis and management.

At-Will Employee

An employee who can be terminated by a company for any reason.


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.

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