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Seed Round
Seed money, sometimes known as seed funding or seed capital, is a form of securities offering in which an investor invests capital in a startup company in exchange for an equity stake or convertible note stake in the company. The term ''seed'' suggests that this is a very early investment, meant to support the business until it can generate cash of its own (see cash flow), or until it is ready for further investments. Seed money options include friends and family funding, seed venture capital funds, angel funding, and crowdfunding. Usage Traditionally, companies that have yet to meet listing requirements or qualify for bank loans, recognize VC as providers of financial support and value added services. Seed money can be used to pay for preliminary operations such as market research and product development. Investors can be the founders themselves, using savings and loans. They can be family members and friends of the founders. Investors can also be outside angel investors, ventu ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Securities Offering
A securities offering (or funding round or investment round) is a discrete round of investment, by which a business or other enterprise raises money to fund operations, expansion, a capital project, an acquisition, or some other business purpose. Components of a round Hallmarks of an offering include the following (though none are an absolute requirement in every circumstance): *A prospectus, private placement memorandum, or other document used to advertise the availability and terms of the offering, and to provide disclosure of information investors will need for their due diligence efforts *A securities filing with relevant state and/or federal regulators *Various contracts and documents by which the securities are sold such as a subscription agreement, a stock purchase agreement, and a convertible note (which documents a type of convertible security) or other loan document *Various subsidiary or related agreements such as a buy-sell agreement, investor rights agreement, ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Venture Capital
Venture capital (often abbreviated as VC) is a form of private equity financing that is provided by venture capital firms or funds to startups, early-stage, and emerging companies that have been deemed to have high growth potential or which have demonstrated high growth (in terms of number of employees, annual revenue, scale of operations, etc). Venture capital firms or funds invest in these early-stage companies in exchange for equity, or an ownership stake. Venture capitalists take on the risk of financing risky start-ups in the hopes that some of the firms they support will become successful. Because startups face high uncertainty, VC investments have high rates of failure. The start-ups are usually based on an innovative technology or business model and they are usually from high technology industries, such as information technology (IT), clean technology or biotechnology. The typical venture capital investment occurs after an initial "seed funding" round. The first ro ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Venture Capital
Venture capital (often abbreviated as VC) is a form of private equity financing that is provided by venture capital firms or funds to startups, early-stage, and emerging companies that have been deemed to have high growth potential or which have demonstrated high growth (in terms of number of employees, annual revenue, scale of operations, etc). Venture capital firms or funds invest in these early-stage companies in exchange for equity, or an ownership stake. Venture capitalists take on the risk of financing risky start-ups in the hopes that some of the firms they support will become successful. Because startups face high uncertainty, VC investments have high rates of failure. The start-ups are usually based on an innovative technology or business model and they are usually from high technology industries, such as information technology (IT), clean technology or biotechnology. The typical venture capital investment occurs after an initial "seed funding" round. The first ro ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Series A Round
A series A round (also known as series A financing or series A investment) is the name typically given to a company's first significant round of venture capital financing. The name refers to the class of preferred stock sold to investors in exchange for their investment. It is usually the first series of stock after the common stock and common stock options issued to company founders, employees, friends and family and angel investors. Series A rounds are traditionally a critical stage in the funding of new companies. Series A investors typically purchase 10% to 30% of the company. The capital raised during a series A is usually intended to capitalize the company for 6 months to 2 years as it develops its products, performs initial marketing and branding, hires its initial employees, and otherwise undertakes early stage business operations. It may be followed by more rounds ( Series B, Series C, etc). Sources of capital Because there are no public exchanges listing their securi ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Revenue-based Financing
Revenue-based financing or royalty-based financing (RBF) is a type of financial capital provided to small or growing businesses in which investors inject capital into a business in return for a fixed percentage of ongoing gross revenues, with payment increases and decreases based on business revenues, typically measured as either daily revenue or monthly revenue. This funding model is similar to a merchant cash advance, which is a lump-sum payment to a business in exchange for a percentage of future credit card sales or daily debit card sales. Like RBF, merchant cash advances do not require collateral or equity and are typically repaid within a short period of time, often within a few months to a year. Usually the returns to the investor continue until the initial capital amount, plus a multiple (also known as a cap) is repaid. Generally, RBF investors expect the loan to be repaid within 3 to 5 years of the initial investment. Overview RBF is often described as sitting between a ba ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Private Equity
In the field of finance, the term private equity (PE) refers to investment funds, usually limited partnerships (LP), which buy and restructure financially weak companies that produce goods and provide services. A private-equity fund is both a type of ownership of assets ( financial equity) and is a class of assets (debt securities and equity securities), which function as modes of financial management for operating private companies that are not publicly traded in a stock exchange. Private-equity capital is invested into a target company either by an investment management company (private equity firm), or by a venture capital fund, or by an angel investor; each category of investor has specific financial goals, management preferences, and investment strategies for profiting from their investments. Each category of investor provides working capital to the target company to finance the expansion of the company with the development of new products and services, the restructuring ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Crowdsourcing
Crowdsourcing involves a large group of dispersed participants contributing or producing goods or services—including ideas, votes, micro-tasks, and finances—for payment or as volunteers. Contemporary crowdsourcing often involves digital platforms to attract and divide work between participants to achieve a cumulative result. Crowdsourcing is not limited to online activity, however, and there are various historical examples of crowdsourcing. The word crowdsourcing is a portmanteau of "crowd" and " outsourcing". In contrast to outsourcing, crowdsourcing usually involves less specific and more public groups of participants. Advantages of using crowdsourcing include lowered costs, improved speed, improved quality, increased flexibility, and/or increased scalability of the work, as well as promoting diversity. Crowdsourcing methods include competitions, virtual labor markets, open online collaboration and data donation. Some forms of crowdsourcing, such as in "idea competiti ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Angel Investor
An angel investor (also known as a business angel, informal investor, angel funder, private investor, or seed investor) is an individual who provides capital for a business or businesses start-up, usually in exchange for convertible debt or ownership equity. Angel investors usually give support to start-ups at the initial moments (where risks of the start-ups failing are relatively high) and when most investors are not prepared to back them. In a survey of 150 founders conducted by Wilbur Labs, about 70% of entrepreneurs will face potential business failure, and nearly 66% will face this potential failure within 25 months of launching their company. A small but increasing number of angel investors invest online through equity crowdfunding or organize themselves into angel groups or angel networks to share investment capital, as well as to provide advice to their portfolio companies. Over the last 50 years, the number of angel investors has greatly increased. Etymology and origin T ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Eureka (organization)
Eureka (often abbreviated as E!, or Σ!) is an intergovernmental organisation for research and development funding and coordination. Eureka is an open platform for international cooperation in innovation. Organisations and companies applying through Eureka programmes can access funding and support from national and regional ministries or agencies for their international R&D projects. , Eureka has 43 full members, including the European Union (represented by the European Commission) and four associated members (Argentina, Chile, South Africa, and Singapore). All 27 EU Member States are also members of Eureka. Eureka is not an EU research programme, but rather an intergovernmental organisation of national ministries or agencies, of which the EU is a member. Cooperation and synergy are sought between Eureka and the research activities of the EU proper, such as with European Union's Horizon 2020 and the European Research Area. History Founded in 1985 by prominent European polit ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
European Commission
The European Commission (EC) is the executive of the European Union (EU). It operates as a cabinet government, with 27 members of the Commission (informally known as "Commissioners") headed by a President. It includes an administrative body of about 32,000 European civil servants. The Commission is divided into departments known as Directorates-General (DGs) that can be likened to departments or ministries each headed by a Director-General who is responsible to a Commissioner. There is one member per member state, but members are bound by their oath of office to represent the general interest of the EU as a whole rather than their home state. The Commission President (currently Ursula von der Leyen) is proposed by the European Council (the 27 heads of state/governments) and elected by the European Parliament. The Council of the European Union then nominates the other members of the Commission in agreement with the nominated President, and the 27 members as a team are then ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Angels Den
Angels Den is the Europe's first and largest online investment platform that connects businesses with angel investors. It was founded in 2013 and is authorised by the Financial Conduct Authority (FCA). Angels Den - now Angels Den Funding - offers an online investing platform, which allows investors to invest in pre-vetted SMEs. 92% of Angels Den funded companies since 2013 are still active today. Angels Den is headquartered in Emerson Court, Islington, London, and also has a presence in Poland and Romania, constantly looking for new opportunities to extend. History The process of matching business owners and investors was initially done online, but in July 2008 Angels Den introduced the concept of "SpeedFunding" where entrepreneurs pitch to investors on a one-to-one basis. In July 2013 the runner-up of the BBC television series The Apprentice, Luisa Zissman, found 16 investors to fund her new business through Angels Den. In October 2013 Angels Den launched an online platfor ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Seedrs
Seedrs is an online equity crowdfunding company, headquartered in East London's Tech City, founded in 2009 and launched by Jeff Lynn and Carlos Silva in 2012. Since 2022 it has been a subsidiary of American crowdfunding company Republic. In 2020, Seedrs announced that 250 startups had raised funding through its crowdfunding platform during 2019. By 2022, Seedrs reported that over £1.9billion had been invested through the company. History The company was founded in 2012 by Jeff Lynn and Carlos Silva as part of an MBA project at the Saïd Business School at the University of Oxford. In March 2012, Seedrs raised $1 million in seed funding from private investors including venture capital firm Draper Esprit. In May 2012, Seedrs became the first equity crowdfunding platform to receive regulatory approval from the Financial Conduct Authority. In July 2012, Seedrs launched its platform to the public. In November 2013, Seedrs raised £750,000 in funding through its own platform. ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
