Startup Terms – Haven

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Startup Terms

A
B
C
D
E
F
G
H
I
J
K
L
M
N
O
P
Q
R
S
T
U
V
W
X
Y
Z

A

Accredited Investor

Accrual Accounting

Administration Fee

Aggregate Subscription Amount

Ancillary Documents

Angel investors

Angel Syndicate

Annual Recurring Revenue (ARR)

Anti-Dilution Protection

Authorized Shares

Automated Clearing House (ACH)

B

Balloon Payment

Bank Reconciliation

Bargaining Power

Bills of Exchange

Binding Agreements

Board of Directors

Bottom Up Financial Model

Break Even Point

Bridge Loans in 2023

Business Fundamentals

C

Cap (Convertible Note)

Capital Under Management

Cap ( Capitalization Table)

Cash Flow Statement

Certificate of Incorporation

Change in Control

Compliance Costs

Condition Precedent

Contingent Liability

Amendment (Contract)

Conversion Rights

Convertible Note

Convertible Preferred Stock

Cost of Capital

Credit Facility

Cumulative Dividends

Current Liability

Customer Acquisition Cost

Customer Lifetime Value (LTV or CLTV)

D

Debt Consolidation

Debt-to-Equity Ratio

Default (Financial)

Default (Technical)

Dilutive Financing

Dirty Term Sheets

Disclosure Schedule

Double Entry Accounting

Drag-Along Rights

Duty Of Loyalty

E

Equity Dilution

Equity Financing

F

Financial Statement

Fixed Interest Rate

Forgivable Loan

Founders Shares (Founders Stock)

Free Cash Flow (FCF)

Friends and Family Round

Fully Diluted Shares

Full Drawn Advance

G

Gross Burn Rate

Growth At Any Cost

Growth Strategy

H

Hard Money Lenders

I

Indemnification

Industrial Vertical

Information Rights

Intangible Asset

Intellectual Property

Investment Multiple

Investment Vehicle

Investor Rights Agreement (IRA)

Invoice Financing

Issuance of Original Securities

K

L

Liquidation Multiplier

Liquidation Preference

Liquidation Waterfall

Liquidity Event

Loan in Default

Loan Processing Fee

Loan-to-Value Ratio (LVR)

M

Major Investors Right

Management Rights Letter

Mandatory Conversion

Market Penetration

Merchant Cash Advance

Mezzanine Financing

Micro Venture Capital

Most Favored Nation (MFN) Clause

N

Negative Covenant

No Obligation to Advance

Non Dilutive Funding

O

Offering Period

Opportunity Cost

Origination Fee

Out of Pocket Costs

Overdraft Facility

Overdraft Stake (Owners Equity)

P

Participating Preferred

Payment-in-Kind

Peer-Peer Lending

Personal Guarantees

Personal Property

Pitch Competition

Portfolio Company

Post-Money Valuation

Pre-Money Valuation

Pre Seed Funding

Preferred Equity (Preferred Stock)

Prepayment Penalty

Private Placement Memorandum (PPM)

Pro Rata Rights

Product-Market Fit

Profit and Loss Statement

Proof of Concept

Protective Provisions

Q

R

Ratchet (Full) Dilution

Ratchet (Partial, Weighter) Dilution

Recapitalization

Receivables Factoring

Receivable Financing

Recurring Revenue

Recurring Revenue Lending

Redemption Rights

Registration Rights

Repayment Terms

Retention of Title

Revenue Based Financing

Revenue Sharing Note

S

SAFE Note (Financing)

Secretary’s Certificate

Securities Exchange Commission (SEC)

Securities Law Compliance

Senior Creditor

Serviceable Available Market (SAM)

Serviceable Obtainable Market (SOM)

Shareholders’ Agreement

Single Entry Bookkeeping

Small Business Association Loan

Small Business Association (SBA)

Small Business Innovation Research (SBIR)

Software as a Service (SaaS)

Software Startup

Stand-Alone Convertible Note

Startup Advisor

Start-up Capital

Startup Incubator

Stock Purchasing Agreement

Strategic Investor

T

Target Rate of Return

The 409a Valuation

The 83(b) Election

Top-Down Forecasting

Total Addressable Market (TAM)

Trajectory Growth Funding

U

Underwriting Fee

Use of Proceeds Document

V

Valley of Death

Valuation Diverge

Variable Interest

Venture Capital

Vesting Schedule

Voluntary Conversion

Vulture Capitalist

W

Warrant Coverage

Waterfall Equity

Working Capital

X

X-Mark Signature

Y

Yield Advantage

z

Zero Balance Account

Zero Based Budgeting