Venture Capital (VC):
Angel Investor: Individual who provides capital to startups in exchange for ownership equity.
Seed Funding: Initial capital used to start a business or launch a product.
Series A, B, C, etc.: Funding rounds in which a company raises capital from investors as it grows and develops.
Startup: Early-stage company in its infancy, typically seeking funding and growth opportunities.
Exit Strategy: Plan to allow investors to cash out their investment, usually through an IPO or acquisition.
Private Equity (PE):
Leveraged Buyout (LBO): Acquisition of a company using a significant amount of borrowed funds.
Portfolio Company: A company held within a private equity firm’s investment portfolio.
Fund of Funds (FoF): An investment strategy where a fund invests in multiple private equity funds.
Distressed Asset: An asset, typically a company, that is under financial distress or facing bankruptcy.
Management Buyout (MBO): Acquisition of a company by its existing management team.
Mergers and Acquisitions (M&A):
Merger: Combination of two or more companies to form a new entity.
Acquisition: One company buying another, often by purchasing a majority of its shares.
Due Diligence: Comprehensive investigation and analysis of a company’s financial, legal, and operational aspects before a transaction.
Synergy: The financial benefit achieved when two companies combine to create a stronger, more valuable entity.
Letter of Intent (LOI): A preliminary agreement outlining the terms and conditions of a potential deal.
Valuation: The estimated worth of a company based on various financial metrics and market conditions.
Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA): A measure of a company’s financial performance, often used in valuations.
Return on Investment (ROI): A measure of the return generated from an investment, often expressed as a percentage.
Debt Financing: Raising capital by borrowing money, which the company must repay over time with interest.
Equity Financing: Raising capital by selling ownership shares in the company.
Last Updated on: 8th December 2023, 07:25 pm
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