{"id":4631,"date":"2024-05-20T18:48:16","date_gmt":"2024-05-20T23:48:16","guid":{"rendered":"https:\/\/diamondlinked.com\/?page_id=4631"},"modified":"2026-01-07T03:06:25","modified_gmt":"2026-01-07T08:06:25","slug":"vc-glossary","status":"publish","type":"page","link":"https:\/\/www.mycapital.com\/resources\/vc-glossary\/","title":{"rendered":"VC Glossary"},"content":{"rendered":"\n\n\n
<\/div>
All<\/a>A<\/a>B<\/a>C<\/a>D<\/a>E<\/a>F<\/a>G<\/a>H<\/a>I<\/a>J<\/a>K<\/a>L<\/a>M<\/a>N<\/a>O<\/a>P<\/a>Q<\/a>R<\/a>S<\/a>T<\/a>U<\/a>V<\/a>W<\/a>Z<\/a><\/div><\/div>
A<\/span>
Accredited Investor<\/dt>
An individual or entity meeting certain income\/net worth thresholds to invest in private offerings.<\/dd><\/dl>
Acqui-hire<\/dt>
The acquisition of a company primarily for its talent rather than its products or services.<\/dd><\/dl>
Allocation<\/dt>
The distribution of investment funds among various assets or securities.<\/dd><\/dl>
Alternative Investments<\/dt>
Investments beyond traditional asset classes like stocks and bonds (e.g., real estate, commodities).<\/dd><\/dl>
Angel Investor<\/dt>
A high-net-worth individual who provides financial backing to startups in exchange for equity.<\/dd><\/dl>
Accelerator<\/dt>
Programs providing mentorship and resources to startups for rapid growth and development.<\/dd><\/dl>
Accounts Receivable Turnover<\/dt>
A ratio indicating a company’s efficiency in collecting outstanding receivables during a period.<\/dd><\/dl>
Accretion<\/dt>
The gradual increase in value or size over time.<\/dd><\/dl>
Acquisition Premium<\/dt>
The excess paid over the fair market value of acquired assets in an acquisition.<\/dd><\/dl>
Antidilution<\/dt>
Protections for existing shareholders to prevent the decrease in their ownership stake.<\/dd><\/dl>
Arm’s Length Transaction<\/dt>
A transaction between unrelated parties, typically without conflicts of interest.<\/dd><\/dl>
Asset Deal<\/dt>
An acquisition in which only specific assets and liabilities of a company are bought or sold.<\/dd><\/dl>
Assets Under Management<\/dt>
Total value of assets managed by a financial institution or individual.<\/dd><\/dl><\/div>
B<\/span>
Burn Rate<\/dt>
The rate at which a company spends its capital over a specific period.<\/dd><\/dl>
BATNA<\/dt>
Best Alternative to a Negotiated Agreement – a negotiator’s alternative if negotiations fail.<\/dd><\/dl>
Bear Hug<\/dt>
An unsolicited takeover offer made directly to a target company’s shareholders.<\/dd><\/dl>
Blind Pool<\/dt>
A pool of money or assets with undisclosed specifics or investments.<\/dd><\/dl>
Board Of Directors<\/dt>
Individuals elected to oversee a company’s management and make major corporate decisions.<\/dd><\/dl>
Bootstrapped<\/dt>
Building a business without external funding, relying on personal finances or revenues.<\/dd><\/dl>
Bridge Loan<\/dt>
Short-term financing used until a company secures permanent funding or removes an obligation.<\/dd><\/dl>
Business Model Canvas<\/dt>
A visual tool representing a company’s business model, outlining key elements and strategies.<\/dd><\/dl><\/div>
C<\/span>
Cap Table<\/dt>
A table showing the company’s equity ownership, detailing shareholders and their holdings.<\/dd><\/dl>
Carry<\/dt>
The share of profits that fund managers receive in successful investment funds.<\/dd><\/dl>
Cap Rate Formula<\/dt>
Capitalization rate formula used in real estate to estimate property value based on income.<\/dd><\/dl>
Capex<\/dt>
Capital expenditure – money spent by a company to acquire or upgrade physical assets.<\/dd><\/dl>
Capital Efficiency<\/dt>
Measures how effectively a company utilizes its capital to generate revenue.<\/dd><\/dl>
CAPM<\/dt>
Capital Asset Pricing Model – a formula used to calculate the expected return on an investment.<\/dd><\/dl>
Cash Position<\/dt>
The amount of cash and cash equivalents a company holds at a specific point in time.<\/dd><\/dl>
Common Stock<\/dt>
The basic form of ownership in a company, typically representing voting rights and dividends.<\/dd><\/dl>
Competitive Positioning<\/dt>
How a company distinguishes its products or services from competitors in the market.<\/dd><\/dl>
Confidence Interval Excel Function<\/dt>
Excel function used to calculate the range within which a true value is likely to fall.<\/dd><\/dl>
Confidential Information Memorandum<\/dt>
Document providing detailed information about a company for potential investors or buyers.<\/dd><\/dl>
Consumer Surplus Formula<\/dt>
Calculation representing the difference between what consumers are willing to pay and what they pay.<\/dd><\/dl>
Contract Of Adhesion<\/dt>
A contract where terms are set by one party, typically with unequal bargaining power.<\/dd><\/dl>
Convertible Debt<\/dt>
Debt that can be converted into equity or stock at a predetermined conversion rate.<\/dd><\/dl>
Convertible Stock<\/dt>
Preferred stock with an option to be converted into a predetermined number of common shares.<\/dd><\/dl>
Correlation Formula<\/dt>
Statistical measure indicating the relationship between two variables.<\/dd><\/dl>
Cost Of Equity Formula<\/dt>
Calculation to determine the expected return a company must offer to persuade investors to hold its stock.<\/dd><\/dl>
Cost Of Goods Manufactured Formula<\/dt>
Formula calculating the total cost of goods produced during a specific period.<\/dd><\/dl>
Covariance Formula<\/dt>
Statistical measure indicating how two random variables change together.<\/dd><\/dl>
Crossover Investors<\/dt>
Investors who participate in different types of funding rounds (e.g., from private to public markets).<\/dd><\/dl><\/div>
D<\/span>
Death Valley Curve<\/dt>
A graphical representation of the startup lifecycle depicting the initial struggle before growth.<\/dd><\/dl>
Decacorn<\/dt>
A private company valued at over $10 billion.<\/dd><\/dl>
Dilution<\/dt>
Reduction in the ownership percentage of existing shareholders due to the issuance of new shares.<\/dd><\/dl>
Diversification<\/dt>
Spreading investments across various assets to mitigate risk.<\/dd><\/dl>
Down Round<\/dt>
A funding round where a company’s valuation decreases from the previous round.<\/dd><\/dl>
Dry Powder<\/dt>
Uninvested capital held by an investment firm ready for deployment.<\/dd><\/dl>
Due Diligence<\/dt>
The investigation and analysis conducted before entering into an agreement or transaction.<\/dd><\/dl>
Data Room Banking<\/dt>
Secure virtual data storage used during due diligence in financial transactions.<\/dd><\/dl>
Deal Flow<\/dt>
The rate at which investment opportunities come to a financial investor or firm.<\/dd><\/dl>
Debt Financing<\/dt>
Raising capital by borrowing funds, typically through loans or bonds.<\/dd><\/dl>
Debt Service Coverage Ratio<\/dt>
A financial ratio measuring a company’s ability to cover its debt payments.<\/dd><\/dl>
Debt To Asset Ratio<\/dt>
A financial ratio indicating the proportion of a company’s assets financed by debt.<\/dd><\/dl>
Debt To Equity Ratio<\/dt>
A financial ratio measuring the relationship between a company’s debt and shareholders’ equity.<\/dd><\/dl>
Depreciation Methods<\/dt>
Various techniques to allocate the cost of an asset over its useful life for accounting purposes.<\/dd><\/dl>
Discount For Lack Of Control<\/dt>
Reduction in the value of an ownership interest due to a lack of controlling interest.<\/dd><\/dl>
Discount For Lack Of Marketability<\/dt>
Reduction in the value of an asset due to its inability to be quickly converted to cash.<\/dd><\/dl>
Discounted Cash Flow<\/dt>
A valuation method estimating the value of an investment based on its future cash flows.<\/dd><\/dl>
Divestiture<\/dt>
The sale or disposal of a company’s assets, subsidiaries, or divisions.<\/dd><\/dl>
Double Declining Balance<\/dt>
An accelerated method of depreciation that applies a fixed percentage to the declining book value.<\/dd><\/dl>
Drag-Along Rights<\/dt>
Rights allowing majority shareholders to force minority shareholders to join in a sale of the company.<\/dd><\/dl><\/div>
E<\/span>
Exits<\/dt>
Events where investors can realize their investments (e.g., IPOs, acquisitions).<\/dd><\/dl>
Ear Formula<\/dt>
A formula used to calculate the equivalent annual rate (EAR) of interest on an investment.<\/dd><\/dl>
Earnings Per Share Formula<\/dt>
Calculation dividing a company’s net income by its total outstanding shares.<\/dd><\/dl>
EBITDA<\/dt>
Earnings before interest, taxes, depreciation, and amortization – a measure of a company’s profitability.<\/dd><\/dl>
Economies Of Scale<\/dt>
Cost advantages resulting from increased production or output.<\/dd><\/dl>
Economies Of Scope<\/dt>
Cost advantages achieved by producing a variety of goods or services using the same resources.<\/dd><\/dl>
Engagement Letter<\/dt>
A formal agreement outlining the terms and scope of services between a client and a professional firm.<\/dd><\/dl>
Entrepreneur In Residence<\/dt>
An individual working within a venture capital firm or startup to offer expertise and guidance.<\/dd><\/dl>
Environmental Assessment<\/dt>
Evaluation determining the potential environmental impact of a project, plan, or development.<\/dd><\/dl>
Environmental Scan<\/dt>
Analysis examining external factors affecting a business, including economic, social, and regulatory trends.<\/dd><\/dl>
Equity<\/dt>
Ownership interest in a company’s assets after liabilities are deducted.<\/dd><\/dl><\/div>
F<\/span>
Financial Ratios<\/dt>
Metrics used to evaluate a company’s financial performance, liquidity, and solvency.<\/dd><\/dl>
Financing Contingency<\/dt>
A condition in a contract specifying that a transaction is dependent on securing financing.<\/dd><\/dl>
First-Mover Advantage<\/dt>
Competitive edge gained by being the first to enter a market or industry.<\/dd><\/dl>
Forward Integration<\/dt>
A strategy involving a company expanding its operations into downstream activities.<\/dd><\/dl>
Friendly Takeover<\/dt>
Acquisition where the target company’s management supports the acquisition.<\/dd><\/dl>
Full Ratchet<\/dt>
Anti-dilution provision ensuring convertible preferred stockholders receive the most favorable conversion ratio.<\/dd><\/dl>
Fully Diluted Shares Outstanding<\/dt>
The total number of a company’s common shares if all convertible securities were exercised.<\/dd><\/dl>
Fund Of Funds<\/dt>
An investment strategy involving investing in other investment funds rather than individual securities.<\/dd><\/dl><\/div>
G<\/span>
General Partner<\/dt>
An individual responsible for managing a partnership and making investment decisions.<\/dd><\/dl>
Godfather Offer<\/dt>
An offer made to a target company’s management that cannot be refused.<\/dd><\/dl>
Greenmail<\/dt>
A tactic where a company repurchases its stock from a potential acquirer at a premium to avoid a takeover.<\/dd><\/dl>
Greenshoe Option<\/dt>
An over-allotment option allowing the sale of additional shares beyond the original offering.<\/dd><\/dl>
Gross Margin Ratio<\/dt>
A financial metric indicating the percentage of revenue that exceeds the cost of goods sold.<\/dd><\/dl>
Growth Equity<\/dt>
Investment in established companies aiming for expansion and growth.<\/dd><\/dl><\/div>
H<\/span>
Horizontal Integration<\/dt>
Merging or acquiring companies within the same industry or at the same stage of production.<\/dd><\/dl>
Horizontal Mergers<\/dt>
Consolidation of companies operating in the same industry or producing similar products.<\/dd><\/dl>
Hostile Takeover<\/dt>
Acquisition attempted against the wishes of a target company’s management and board.<\/dd><\/dl><\/div>
I<\/span>
Identifiable Assets<\/dt>
Assets with a specific value that can be separately identified and measured.<\/dd><\/dl>
Incubator<\/dt>
A program providing resources and support to startups in their early stages of development.<\/dd><\/dl>
Indication Of Interest<\/dt>
A non-binding offer or statement indicating a party’s willingness to engage in a transaction.<\/dd><\/dl>
Infinite Banking<\/dt>
A financial strategy utilizing whole life insurance policies for banking purposes.<\/dd><\/dl>
Insurance Market<\/dt>
The marketplace where insurers offer various insurance policies to individuals and businesses.<\/dd><\/dl>
Internal Rate Of Return<\/dt>
The discount rate making the net present value of an investment zero.<\/dd><\/dl>
Intrinsic Value<\/dt>
The calculated or estimated inherent value of an asset, often used in options trading.<\/dd><\/dl>
Inventory Turnover Ratio<\/dt>
A financial metric indicating how many times a company sells and replaces its inventory in a period.<\/dd><\/dl><\/div>
J<\/span>
Joint Venture<\/dt>
A business arrangement where two or more parties collaborate for a specific purpose or project.<\/dd><\/dl><\/div>
K<\/span>
K-1<\/dt>
A tax document distributed to partners in a partnership, detailing their share of income, deductions, and credits.<\/dd><\/dl>
Key Man Clause<\/dt>
A provision in a contract or insurance policy identifying a crucial individual whose absence may affect the agreement.<\/dd><\/dl><\/div>
L<\/span>
Lead Investor<\/dt>
The investor who takes the primary responsibility in a funding round or investment.<\/dd><\/dl>
Limited Partner<\/dt>
An investor in a partnership who is not involved in its day-to-day operations.<\/dd><\/dl>
Liquidation<\/dt>
The process of selling off a company’s assets to pay creditors or distribute to shareholders.<\/dd><\/dl>
Lock-up period<\/dt>
A timeframe after an IPO or other event during which certain shareholders cannot sell their shares.<\/dd><\/dl>
Leverage Ratio Formula<\/dt>
A financial metric indicating the degree of a company’s debt relative to its equity capital.<\/dd><\/dl>
Leveraged Buyout<\/dt>
Acquisition of a company using a significant amount of borrowed funds.<\/dd><\/dl>
Liquidation Preference<\/dt>
A right giving preferred shareholders priority in receiving proceeds in case of liquidation.<\/dd><\/dl>
Liquidity Event<\/dt>
An occurrence leading to the conversion of an investment into cash or cash equivalents.<\/dd><\/dl><\/div>
M<\/span>
MOIC<\/dt>
Multiple on Invested Capital – a metric indicating the return on investment in multiples.<\/dd><\/dl>
MVP<\/dt>
Minimal Viable Product – the most basic version of a product with enough features to satisfy early customers.<\/dd><\/dl>
Mergers & Acquisitions<\/dt>
Processes involving the combination or purchase of companies.<\/dd><\/dl>
Margin Of Safety Formula<\/dt>
A calculation determining the difference between actual or expected returns and the break-even point.<\/dd><\/dl>
Marginal Revenue Formula<\/dt>
A calculation indicating the change in total revenue when the quantity of goods sold changes by one unit.<\/dd><\/dl>
Market Positioning<\/dt>
Strategies and actions undertaken to influence consumer perception of a brand or product.<\/dd><\/dl>
Market To Book Ratio<\/dt>
A financial ratio comparing a company’s market value to its book value.<\/dd><\/dl>
Master Limited Partnership<\/dt>
A business structure combining the tax benefits of a partnership with the liquidity of publicly traded securities.<\/dd><\/dl>
Mezzanine Debt<\/dt>
Intermediate financing using a combination of debt and equity, often used in acquisitions or expansions.<\/dd><\/dl>
Mezzanine Financing<\/dt>
Financing employing subordinated debt or preferred equity for companies.<\/dd><\/dl>
MOU<\/dt>
Memorandum of Understanding – a preliminary agreement outlining the terms of a future deal or relationship.<\/dd><\/dl><\/div>
N<\/span>
Net Book Value Of Assets<\/dt>
The value of assets on a company’s balance sheet after depreciation, amortization, and impairment.<\/dd><\/dl>
Net Operating Income Formula<\/dt>
Calculation representing a company’s operating income after subtracting operating expenses.<\/dd><\/dl>
Nominal Data<\/dt>
Data representing categories or names without a quantitative value.<\/dd><\/dl>
Novation Contract<\/dt>
A legal agreement transferring rights and obligations from one party to another.<\/dd><\/dl>
NPV Formula In Excel<\/dt>
Excel formula calculating the net present value of an investment or project.<\/dd><\/dl><\/div>
O<\/span>
Offering Memorandum<\/dt>
A document presenting information about a company to potential investors during a private offering.<\/dd><\/dl>
Operating Cash Flow Formula<\/dt>
Calculation measuring a company’s cash generated from its operations.<\/dd><\/dl>
Operating Profit Margin<\/dt>
A financial metric indicating a company’s profitability from its core operations.<\/dd><\/dl>
Organizational Design<\/dt>
The structure and arrangement of roles, responsibilities, and processes within an organization.<\/dd><\/dl><\/div>
P<\/span>
Pivot<\/dt>
A strategic change in a company’s direction or product offering.<\/dd><\/dl>
Portfolio Company<\/dt>
A company in which an investment firm holds equity.<\/dd><\/dl>
Post-Money Valuation<\/dt>
The estimated value of a company after a financing round.<\/dd><\/dl>
Pre-Money Valuation<\/dt>
The estimated value of a company before a financing round.<\/dd><\/dl>
Private Equity<\/dt>
Investments made into private companies not listed on public stock exchanges.<\/dd><\/dl>
Pro-Rata Rights<\/dt>
Investors’ rights allowing them to maintain their proportional ownership in future rounds.<\/dd><\/dl>
Product\u2013Market Fit<\/dt>
The alignment between a product\/service and its target market’s needs.<\/dd><\/dl>
PaaS<\/dt>
Platform as a Service – a cloud computing service providing a platform for software development.<\/dd><\/dl>
Pac Man Defense<\/dt>
A strategy where a target company attempts to take over its would-be acquirer.<\/dd><\/dl>
Participating Preferred Stock<\/dt>
Preferred stock granting additional dividends beyond a specified rate if certain conditions are met.<\/dd><\/dl>
Pay-To-Play<\/dt>
A provision requiring further investment to maintain existing rights or privileges.<\/dd><\/dl>
Preferred Stock<\/dt>
A type of stock granting priority over common stock in dividends and distribution of assets.<\/dd><\/dl>
Present Value Formula<\/dt>
Formula calculating the current value of future cash flows discounted at a specific rate.<\/dd><\/dl>
Profit Margin Formula<\/dt>
Calculation indicating the percentage of profit generated from total revenue.<\/dd><\/dl>
Purchase Price Allocation<\/dt>
The process of assigning a portion of a purchase price to the acquired company’s tangible and intangible assets.<\/dd><\/dl><\/div>
Q<\/span>
Quality Of Earnings Report<\/dt>
An analysis evaluating the sustainability and reliability of a company’s earnings.<\/dd><\/dl><\/div>
R<\/span>
ROI<\/dt>
Return on Investment – a measure of the gain or loss generated relative to the initial investment.<\/dd><\/dl>
Roadshow<\/dt>
Presentations made by a company to potential investors before a public offering.<\/dd><\/dl>
Run Rate<\/dt>
Extrapolating current financial performance to estimate future performance over a specific period.<\/dd><\/dl>
Runway<\/dt>
The time a company has until it exhausts its available capital.<\/dd><\/dl>
Rate Of Return Formula<\/dt>
Calculation determining the gain or loss on an investment relative to its initial cost.<\/dd><\/dl>
Recapitalization<\/dt>
A restructuring strategy altering a company’s capital structure through debt and equity adjustments.<\/dd><\/dl>
Restrictive Covenant<\/dt>
Conditions or limitations imposed in agreements to restrict certain actions by one party.<\/dd><\/dl>
Restructuring Charges<\/dt>
Costs incurred during the process of reorganizing a company’s operations or financial structure.<\/dd><\/dl>
Retained Earnings Formula<\/dt>
Calculation representing the accumulated profits retained by a company after dividends.<\/dd><\/dl>
Return On Assets Formula<\/dt>
Calculation measuring a company’s efficiency in generating profits from its assets.<\/dd><\/dl>
ROE <\/dt>
Return on Equity – Calculation indicating the profitability of shareholders’ investments.<\/dd><\/dl>
ROI <\/dt>
Return on Investment – Calculation assessing the profitability of an investment relative to its cost.<\/dd><\/dl><\/div>
S<\/span>
SAFE<\/dt>
Simple Agreement for Future Equity – an investment contract used in early-stage fundraising.<\/dd><\/dl>
SPAC<\/dt>
Special Purpose Acquisition Company – a shell company formed to take another company public.<\/dd><\/dl>
Scalability<\/dt>
A business’s ability to handle growing workloads or expand without a significant increase in costs.<\/dd><\/dl>
Seed Series<\/dt>
Early-stage funding provided to help a company develop a product or service.<\/dd><\/dl>
Series A<\/dt>
The first significant round of financing for a startup from venture capitalists.<\/dd><\/dl>
Series B<\/dt>
The second round of financing for a startup to further develop and grow.<\/dd><\/dl>
SaaS<\/dt>
Software as a Service – providing software applications through the internet on a subscription basis.<\/dd><\/dl>
Sale And Purchase Agreements<\/dt>
Legal contracts outlining the terms and conditions of buying or selling assets or a business.<\/dd><\/dl>
Sandbagging<\/dt>
Withholding certain information or actions to protect one’s interests during a negotiation or deal.<\/dd><\/dl>
Scorched Earth Policy<\/dt>
A defensive strategy by a target company to deter a hostile takeover by making itself less attractive.<\/dd><\/dl>
Secondary Offering<\/dt>
The sale of additional shares by a public company after its initial public offering (IPO).<\/dd><\/dl>
Sensitivity Analysis<\/dt>
Examination of how different values of an independent variable affect a dependent variable.<\/dd><\/dl>
Shares Outstanding<\/dt>
Total number of a company’s shares held by shareholders, including restricted and publicly traded shares.<\/dd><\/dl>
Solow Growth Model<\/dt>
An economic model depicting long-term economic growth influenced by technological progress and productivity.<\/dd><\/dl>
Standard Deviation Formula<\/dt>
Calculation measuring the amount of variation or dispersion of a set of values.<\/dd><\/dl>
Statement Of Cash Flows<\/dt>
A financial statement showing a company’s cash inflows and outflows over a specific period.<\/dd><\/dl>
Stockholders Equity Equation<\/dt>
Calculation determining the difference between a company’s assets and liabilities.<\/dd><\/dl>
Straight Line Depreciation Formula<\/dt>
Method allocating an asset’s cost evenly over its useful life for depreciation.<\/dd><\/dl>
Strategy Map<\/dt>
A visual representation illustrating a company’s strategy and objectives.<\/dd><\/dl>
Subsidiary<\/dt>
A company owned or controlled by another company, known as the parent or holding company.<\/dd><\/dl>
SWOT Analysis<\/dt>
A strategic planning tool evaluating a company’s strengths, weaknesses, opportunities, and threats.<\/dd><\/dl>
Synergies<\/dt>
Benefits or advantages resulting from the combination of companies or elements.<\/dd><\/dl><\/div>
T<\/span>
Term Sheet<\/dt>
An outline of the key terms and conditions of a proposed investment.<\/dd><\/dl>
TAM<\/dt>
Total Addressable Market – the entire potential market demand for a product or service.<\/dd><\/dl>
Tender Offer<\/dt>
A public solicitation to buy shares of a company at a specified price for a limited period.<\/dd><\/dl>
Terminal Value Formula<\/dt>
A method used to estimate the value of an investment at a future date beyond a forecasted period.<\/dd><\/dl>
Times Interest Earned Ratio<\/dt>
A financial metric measuring a company’s ability to meet its interest payments on outstanding debt.<\/dd><\/dl>
Total Annual Income<\/dt>
The sum of income earned within a year, including various revenue sources.<\/dd><\/dl>
Treasury Stock<\/dt>
Company-owned stock that was once outstanding and has since been repurchased by the issuing company.<\/dd><\/dl>
Types Of Synergies<\/dt>
Various advantages gained from the combination of companies or resources in a merger or acquisition.<\/dd><\/dl><\/div>
U<\/span>
Unicorn<\/dt>
A privately held startup valued at over $1 billion.<\/dd><\/dl>
Up Round<\/dt>
A funding round where a company’s valuation increases from the previous round.<\/dd><\/dl>
Unilateral Contract<\/dt>
A legally binding agreement where one party makes an obligation or promise to another party.<\/dd><\/dl>
Use Of Proceeds<\/dt>
Explanation detailing how funds from a financial transaction will be utilized.<\/dd><\/dl><\/div>
V<\/span>
Valuation<\/dt>
The process of determining the economic value of a company.<\/dd><\/dl>
Valuation Methods<\/dt>
Different approaches or techniques used to determine the value of an asset, company, or investment.<\/dd><\/dl>
Venture Capitalist<\/dt>
An individual or firm providing capital to startups or small businesses in exchange for equity.<\/dd><\/dl>
Vertical Integration<\/dt>
Strategy where a company extends its operations by acquiring businesses along its supply chain.<\/dd><\/dl>
Vesting<\/dt>
Gradual process where an individual earns the right to the full benefits of an asset or investment over time.<\/dd><\/dl>
Voting Rights<\/dt>
The entitlement given to shareholders to exercise voting power in corporate decision-making.<\/dd><\/dl>
Vulture Fund<\/dt>
An investment fund specializing in distressed securities or companies with high potential returns.<\/dd><\/dl>
VWAP<\/dt>
Volume Weighted Average Price – a benchmark used by traders to assess market trends.<\/dd><\/dl><\/div>
W<\/span>
Write-Off<\/dt>
The accounting practice of declaring an asset as having no value.<\/dd><\/dl>
Waterfall Chart<\/dt>
A visual representation of cumulative data where values are shown incrementally over time.<\/dd><\/dl>
Weighted Average<\/dt>
A calculation accounting for the varying importance of different elements in a group.<\/dd><\/dl>
Weighted Average Cost Of Capital<\/dt>
The average rate of return a company is expected to pay its investors and creditors for financing.<\/dd><\/dl>
White Knight Defense<\/dt>
A strategy where a target company seeks a more favorable acquirer to thwart a hostile takeover.<\/dd><\/dl>
Working Capital Formula<\/dt>
Calculation determining a company’s short-term liquidity by subtracting current liabilities from current assets.<\/dd><\/dl><\/div>
Z<\/span>
Zombie Fund<\/dt>
An investment fund that has exceeded its expected lifespan but continues to exist with remaining investments that are difficult to liquidate or wind down.<\/dd><\/dl><\/div><\/div><\/div><\/div>\n","protected":false},"excerpt":{"rendered":"

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