Category: Forms of financing

Definition and function of revenue-based financing Revenue-based financing is an innovative form of financing in which companies receive capital from ...

Definition and objective of public funding Public funding is financial support provided by government institutions at federal, state or European ...

Definition and economic purpose of factoring Factoring refers to a special form of financing in which companies sell their existing ...

Definition and objectives of incubator programs An incubator program supports start-ups and founding teams at a very early stage of ...

Definition and objectives of accelerator programs An accelerator program is a time-limited, intensive support program for start-ups that aims to ...

Definition and functioning of a family office A family office is a professional organization that specializes in the comprehensive management ...

Definition and basics of private equity Private equity refers to off-market equity capital that is typically invested in established, financially ...

Definition and functioning of a SPAC A Special Purpose Acquisition Company (SPAC) is a listed shell company that is founded ...

Definition and basics of an IPO An initial public offering (IPO) describes the first-time issue and public placement of shares ...

A Simple Agreement for Future Equity (SAFE) is a financing instrument that was developed to offer start-ups a simpler and ...

A cap table (capitalization table) is a tabular overview of the ownership structure of a company, especially a start-up. It ...

Non-Participating Preferred, also known as Straight Preferred, is a form of preferred stock commonly used in startup and venture capital ...

Participating preferred, also known as participating preferred stock, is a special form of preferred stock commonly used in startup and ...

The term "bad leaver" is used in the context of startup companies and participation agreements to describe scenarios in which ...

Post-money valuation is a fundamental concept in startup financing and refers to the value of a company immediately after an ...

The term "good leaver" is used in the context of startup companies and participation agreements to describe scenarios in which ...

Pre-money valuation is a key term in startup financing and refers to the value of a company immediately before an ...

A down round is a financing round for a startup or private company in which the valuation of the company ...

Reverse vesting is a contractual agreement that is often used in start-ups to ensure that founders and key employees remain ...

Bridge financing is a short-term form of financing that companies or investors use to bridge a time gap between two ...