Illustration to pitch deck template startup fundraising vocabulary

Startup Fundraising Vocabulary

A
Accelerators
See startup accelerators
AngelList
An online platform designed to help partnered startups achieve success through a network of investors and advisors.
Angel Investors
A wealthy individual (or group) who use personal finances to buy equity in promising startups. Often entrepreneurs themselves, angel investors may take an active role in the businesses they support.
B
Balance Sheet
A document detailing the current assets, liabilities and capital of a business.
Beachhead Market
A small test market with similarities to the priority market. Eg. Singapore is a beachhead market for Asia.
Bootstrapping
A service offered (often by a founder) for the sole purpose of raising revenue to invest in another venture.
Business Model
A statement of potential revenue streams, customers, vendors, and suppliers that form a plan of business operations.
Business Plan
A document that defines the business goals, objectives, wider market trends, and finances and details how they can be achieved.
C
Cash Flow Statement
A breakdown of a business's actual or intended incoming and outgoing cash.
Common Stockholder
Equity holders with no say in the operation of a business. Typically receive smaller dividends than preferred stockholders
Convertible note
Often issued to companies that have yet to be valued, a convertible note is a loan that can be converted into a set number of shares or cash equivalent at a later date.
Cost Breakdown
The individual costs associated with the production of a product.
Customer Acquisition
Strategies employed to generate sales leads.
D
Deal Flow (or Dealflow)
A measure of how frequently investors are approached with pitches and business plans.
Deck Slide
An individual slide in either a reading or presentation pitch deck.
Dividends
Payments made to shareholders by a business, typically a share of the profits.
E
Elevator Pitch
A 30-second description of a business model, product or service designed to showcase and sell it.
Equity
An ownership interest in the business, usually held in the form of common or preferred stock.
Equity Financing Agreement
Selling equity to raise capital for business growth.
Exit Strategy
A plan of how the founding team or investors will leave the business.
F
Financials
A statement of a business's financial position. Typically includes a balance sheet, income, and cash flow statements.
Fundraising
Raising money from voluntary sources, either by donations or sales.
G
Go To Market
See customer acquisition.
L
Liquidation preference
The sum of money to be paid to preferred stockholders if the business is liquefied, this payment takes priority over those of common shareholders.
Logo
A unique emblem associated with a business, its brand, products, and services.
P
Patent
A legal license recognizing ownership over intellectual property, typically an invention. Prevents others from using the same design without the permission of the patent holder.
Pitch Deck
A series of visual slides that accompany a speech or verbal pitch.
Preferred Stockholder
Equity holders with a priority claim to a business's assets and dividends. They do not generally have voting rights.
Presentation Pitch
See pitch deck.
Profit and Loss Account
See income statement.
Profit Margin
The amount of income that exceeds the cost of production.
R
Reading Deck
A collection of slides designed to introduce a venture or concept to potential investors and interested parties. Presented alone without an accompanying pitch or additional documentation.
S
Seed Capital
The funds used to launch a project. Also called seed money.
Seeding Round
Fundraising activities designed to raise a set amount of capital to launch a business, usually through angel investors.
Series A Round
A business's first fundraising round after the seeding round, typically pitched to venture capitals for funds to support expansion.
Slide Deck
See pitch deck.
Startup
A young business still in the early stages of development or not yet launched.
Startup Accelerator
Also called seed accelerators. A members-only group that provides selected startups with access to useful business contacts, including investors, suppliers, and advisors, in exchange for equity.
Statement of Cashflows
See cashflow statement.
T
Traction
The actions taken so far to generate interest in a business, product, or services and the interest they have generated.
V
Venture Capital
Firms that pool money from clients including institutional investors, pension schemes and insurance companies to invest significant sums (often more than $1,000,000) in high-risk ventures and startups.
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Table of Content
Chapter 2
Elements
Chapter 3
Story
Chapter 4
Design
Chapter 5
Delivery
Chapter 7
Investors
Chapter 8
Action Plan