Valuation Cap

Short-term debt that converts into equity at a future financing round.

Company valuation immediately before new money is invested.

Convertible instrument that converts to equity at a future priced round.

Ledger of all securities issued by a company and who owns them.

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

Investigation of a company before an investment, financing, or acquisition.

Valuation ratio applied at exit, e.g., enterprise value to revenue.

First sale of a company's stock to public investors via a registered SEC offering, typically on NYSE or Nasdaq.