Venture Deals: Be Smarter Than Your Lawyer and Venture Capitalist, 2nd Edition

Glossary

accelerator A program intended to mentor and accelerate the growth and success of a startup company.

accredited investor As defined by federal securities laws, this is a person who is permitted to invest in startups and other high-risk private company securities.

acquisition A transaction between two companies where one is buying the other.

adverse change redemption A type of redemption right whereby a shareholder gets the right to redeem his shares if something adverse happens to the company.

advisers People who advise startup companies. Normally these people are paid some sort of compensation for their efforts.

analyst A very junior person at a VC firm, often a recent college graduate.

angel investor An individual who provides capital to a startup company. This person is usually independently wealthy and invests his own money in the company.

antidilution A term that provides price protection for investors. This is accomplished by effectively repricing an investor's shares to a lower price per share in the event that the company completes a financing at a lower valuation than a previous financing round.

as-converted basis Looking at the equity base of the company assuming that all preferred stock has been converted to common.

associate A person at a VC firm who is involved in deal analysis and management. The seniority of this position varies by firm, but generally associates need a partner to support their activities.

at-will employee An employee who does not have an ...