Pre-Money Valuation

Shares reserved for issuance to employees as stock options.

Company valuation immediately after a financing closes.

Non-binding outline of the key economic and control terms of an investment.

An independent fair-market-value appraisal of common stock used to set tax-compliant strike prices for employee stock options.

Adjustment that protects investors if the company raises a future round at a lower price.

Interim financing between priced rounds, usually convertible.

Rate at which a company spends cash, typically expressed monthly.