Glossary
From “allocation” to “working capital,” every term you’d ever need to know to be a VC investor.
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3(c)(1) Fund
3(c)(7) Fund
409A Valuation
506(c) Fund
A
Accredited Investor
AML
AUM
Allocation
B
Beneficial Owner
Blocker Structures
Broker-Dealer
Blue Sky Fees
Bridge Round
C
Convertible Debt/Convertible Note
Common/Preferred Stock
Carry Share
Cap Table
Cap/Uncapped
Control Person
Co-Investors
Carried Interest (Carry)
Capital Call/Drawdown
D
Deal Memo
Down Round
Discount
E
Effectively Connected Income (ECI)
Exit
Exempt Reporting Adviser
F
Family Company
Family Office
Form ADV
Fund of Funds
G
General Partner/Deal Lead
General Solicitation
GP's Lead Commitment
I
Individual Income
Information Rights
Investment Instrument
Internal Rate of Return (IRR)
J
Joint income
Knowledgeable Employee
K
KYC
L
Liquidation Preference
Liquidity
Look-Through Rules
LP/Investor
M
Management Company
Management Fee
Most Favored Nation (MFN)
N
Net Worth
P
PFIC (Passive Foreign Investment Companies)
Pre-Money/Post-Money Valuation
Pro-Rata Rights
Q
Qualified Purchaser
Qualified Client
Qualified Small Business Stock (QSBS)
Qualifying Investments
R
Recycling
Registered Agent
Runway
Registered investor Advisor (RIA)
Right of First Refusal
S
SAFE
Secondary Transaction
SPV (Special Purpose Vehicle)
Series LLC
Side Letters
T
Tax Shelters
Term Sheet
Total Value Paid In (TVPI)
U
Unrelated Business Taxable Income (UBTI)