The Little Book of Venture Capital Investing: Empowering Economic Growth and Investment Portfolios

Appendix: Resources

VC Glossary of Terms

We have provided a link to an online glossary of VC terms, www.altassets.net/private-equity-and-venture-capital-glossary-of-terms, which will help you understand important private equity and venture capital terms. Use the definitions to help yourself understand how the industry operates. Here are just a few.

acquisition The process of taking over a controlling interest in another company. Acquisition also describes any deal where the bidder ends up with 50 percent or more of the company taken over.

acquisition finance Companies often need to use external finance to fund an acquisition. This can be in the form of bank debt and/or equity, such as a share issue.

advisory board An advisory board is common among smaller companies. It is less formal than the board of directors. It usually consists of people, chosen by the company founders, whose experience, knowledge, and influence can benefit the growth and direction of the business. The board will meet periodically but does not have any legal responsibilities in regard to the company.

alternative assets This term describes nontraditional asset classes. They include private equity, venture capital, hedge funds, and real estate. Alternative assets are generally more risky than traditional assets, but they should, in theory, generate higher returns for investors.

angel investor See business angels.

asset Anything owned by an individual, a business or financial institution that has a present or ...