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Series A Round
A series A is the name typically given to a company's first significant round of venture capital financing. It can be followed by the word round, investment or 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 sec ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Venture Round
A venture round is a type of funding round used for venture capital financing, by which startup company, startup companies obtain investment, generally from venture capitalists and other institutional investors. The availability of venture funding is among the primary stimuli for the development of new companies and technologies. Features Parties *Founders or Project stakeholder, stakeholders. Introduce companies to investors. *A lead investor, typically the best known or most aggressive venture capital firm that is participating in the investment, or the one contributing the largest amount of cash. The lead investor typically oversees most of the negotiation, legal work, due diligence, and other formalities of the investment. It may also introduce the company to other investors, generally in an informal unpaid capacity. *Co-investors, other major investors who contribute alongside the lead investor. *Follow-on or piggyback investors. Typically angel investors, high-net worth ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Due Diligence
Due diligence is the investigation or exercise of care that a reasonable business or person is normally expected to take before entering into an agreement or contract with another party or an act with a certain standard of care. Due diligence can be a legal obligation, but the term more commonly applies to voluntary investigations. It may also offer a defence against legal action. A common example of due diligence is the process through which a potential acquirer evaluates a target company or its assets in advance of a merger or acquisition. The theory behind due diligence holds that performing this type of investigation contributes significantly to informed decision making by enhancing the amount and quality of information available to decision makers and by ensuring that this information is systematically used to deliberate on the decision at hand and all its costs, benefits, and risks. Development of the term The term "due diligence" can be read as "required carefulness" ... [...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 (economics), 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 (finance), 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 SEC filing, securities filing with relevant U.S. state, 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 agreement ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Revenue-based Financing
Revenue-based financing (also known as royalty financing or royalty-based financing) is a type of financial capital provided to growing businesses in which investors inject capital (sometimes called an ''advance'') into a business in return for a fixed percentage of ongoing gross revenues (called ''royalties''), with payment increases and decreases based on business revenues, typically measured as monthly revenue. It is a non-dilutive form of financing, which means that the company's management retains complete independence and control, as there is no equity investment or impact on the company's shareholding. 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 1 to 5 years of the initial investment depending on the model and the funded companies. Overview RBF is often described as sitting between a bank loan, typically requiring collateral or s ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Crowdfunding
Crowdfunding is the practice of funding a project or venture by raising money from a large number of people, typically via the internet. Crowdfunding is a form of crowdsourcing and Alternative Finance, alternative finance, to fund projects "without standard financial intermediaries". Mollick, E. (2014). ''The dynamics of crowdfunding: An exploratory study.'' Journal of Business Venturing. Vol. 29, pp. 1–16. In 2015, over was raised worldwide by crowdfunding. Although similar concepts can also be executed through mail-order subscriptions, benefit events, and other methods, the term crowdfunding refers to internet-mediated registries. This modern crowdfunding model is generally based on three types of actors – the project initiator who proposes the idea or project to be funded, individuals or groups who support the idea, and a moderating organization (the "platform") that brings the parties together to launch the idea. The term crowdfunding was coined in 2006 by entrepreneur an ... [...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] |
Investment Bank
Investment is traditionally defined as the "commitment of resources into something expected to gain value over time". If an investment involves money, then it can be defined as a "commitment of money to receive more money later". From a broader viewpoint, an investment can be defined as "to tailor the pattern of expenditure and receipt of resources to optimise the desirable patterns of these flows". When expenditures and receipts are defined in terms of money, then the net monetary receipt in a time period is termed cash flow, while money received in a series of several time periods is termed cash flow stream. In finance, the purpose of investing is to generate a return on the invested asset. The return may consist of a capital gain (profit) or loss, realised if the investment is sold, unrealised capital appreciation (or depreciation) if yet unsold. It may also consist of periodic income such as dividends, interest, or rental income. The return may also include currency gains ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Blog
A blog (a Clipping (morphology), truncation of "weblog") is an informational website consisting of discrete, often informal diary-style text entries also known as posts. Posts are typically displayed in Reverse chronology, reverse chronological order so that the most recent post appears first, at the top of the web page. In the 2000s, blogs were often the work of a single individual, occasionally of a small group, and often covered a single subject or topic. In the 2010s, multi-author blogs (MABs) emerged, featuring the writing of multiple authors and sometimes professionally Editing, edited. MABs from newspapers, other News media, media outlets, universities, think tanks, advocacy groups, and similar institutions account for an increasing quantity of blog Web traffic, traffic. The rise of Twitter and other "microblogging" systems helps integrate MABs and single-author blogs into the news media. ''Blog'' can also be used as a verb, meaning ''to maintain or add content to a blog ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Initial Public Offering
An initial public offering (IPO) or stock launch is a public offering in which shares of a company are sold to institutional investors and usually also to retail (individual) investors. An IPO is typically underwritten by one or more investment banks, who also arrange for the shares to be listed on one or more stock exchanges. Through this process, colloquially known as ''floating'', or ''going public'', a privately held company is transformed into a public company. Initial public offerings can be used to raise new equity capital for companies, to monetize the investments of private shareholders such as company founders or private equity investors, and to enable easy trading of existing holdings or future capital raising by becoming publicly traded. After the IPO, shares are traded freely in the open market at what is known as the free float. Stock exchanges stipulate a minimum free float both in absolute terms (the total value as determined by the share price multiplied ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Portfolio Company
A portfolio company (commonly abbreviated as PortCo) is a company or entity in which a venture capital firm, a startup studio, or a holding company invests. All companies currently backed by a private equity firm can be spoken of as the firm's portfolio Portfolio may refer to: Objects * Portfolio (briefcase), a type of briefcase Collections * Portfolio (finance), a collection of assets held by an institution or a private individual * Artist's portfolio, a sample of an artist's work or a .... A company may create a portfolio to showcase the capabilities and strengths of the business's services. The portfolio is a collection of the products, services and achievements of the company. The goal of a company portfolio is to create a presence of the business on the market, attract more customers and to show how the business differs from its direct competitors on the market. The company portfolio is also used as a business strategy to show the growth of the company to attract po ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Class A Share
In finance, a class A share refers to a share classification of common or preferred stock that typically has enhanced benefits with respect to dividends, asset sales, or voting rights compared to Class B or Class C shares. There may be restrictions on any specific issue of class A shares in exchange for the benefits; for example, preferences with regard to dividends may be traded for ''reduced'' voting rights. They are often convertible into class B (may not be publicly traded) shares at a favorable rate. For example, a company might allocate class A shares to its management giving them 7 times face value of class B shares, while class B shares have the same voting right as class A shares. Companies classify stock for many reasons. In some cases this is to give company insiders a greater degree of power over the company and to provide a better defense against events like hostile takeover attempts. ''Class A share'' is also a way of pricing sales charges (loads) on mutual fun ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Real Estate Development
Real estate development, or property development, is a business process, encompassing activities that range from the renovation and re-lease of existing buildings to the purchase of raw Real Estate, land and the sale of developed land or parcels to others. Real estate developers are the people and companies who coordinate all of these activities, converting ideas from paper to real property. Real estate development is different from construction or Home construction, housebuilding, although many developers also manage the construction process or engage in housebuilding. Developers buy land, finance real estate deals, build or have builders build projects, develop projects in joint ventures, and create, imagine, control, and orchestrate the process of development from beginning to end.New York Times, March 16, 1963, "Personality Boom is Loud for Louis Lesser" Developers usually take the greatest risk in the creation or renovation of real estate and receive the greatest rewards. ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
