Here is a listing of startup acronyms commonly used by entrepreneurs, investors, accelerators, and others who interact with startup ventures and startup financing:
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OCF -
Operating Cash Flow
Offering Documents -
Documents evidencing a private-placement transaction. Include some combination of a purchase agreement and/or subscription agreement, notes or stock certificates, warrants, registration-rights agreement, stockholder or investment agreement, investor questionnaire, and other documents required by the particular deal.3
One Liner (Cocktail party) -
A cocktail party one liner is a clear, crisp, engaging sentence which provides potential investors a succinct overview of your startup concept and business model. It challenges the investor to become intrigued by both the implied problem and your proposed solution.6
OOO -
Out of Office
Open-end Fund -
An open-end fund, or a mutual fund, generally sells as many shares as investor demand requires. As money flows in, the fund grows. If money flows out of the fund, the number of the fund’s outstanding shares drops. Open-end funds are sometimes closed to new investors, but existing investors can still continue to invest money in the fund. In order to sell shares, an investor generally sells the shares back to the fund. If an investor wishes to buy additional shares in a mutual fund, the investor generally buys newly issued shares directly from the fund.3
Operating Agreement -
An agreement between the members of a Limited Liability Company, (LLC) which governs the LLC’s business including member powers, rights, duties and obligations, and outlining the decision making process related to operational, functional and financial issues in a structured manner. The operating agreement of LLC companies is similar to bylaws utilized by corporations.6
Operating Budget -
A budget consisting of estimates of income and expenses from a company’s operations typically prepared on an annual basis. Expenses typically include operating costs related to producing the company’s product or service, labor, administration and marketing but exclude long term and non-operational items such as capital debt. Operating income would typically exclude items such as investment income.6
- Synonyms: Annual Budget
- Synonyms: Annual Budget
Option -
A security granting the holder the right to purchase a specified number of a Company’s securities at a designated price at some point in the future. The term is generally used in connection with employee benefit plans as Incentive Stock Options (“ISOs” or “statutory options”) and Non-qualified stock options (“NSOs” or “Nonquals”).However “stand-alone options” may be issued outside of any plan. Generally non-transferable, in distinction to warrants.3
Option Pool -
The number of shares set aside for future issuance to employees of a private company.3
OS -
Operating System
Outstanding Stock -
The amount of common shares of a corporation which are in the hands of investors. It is equal to the amount of issued shares less treasury stock.3
Over-the-Counter -
A market for securities made up of dealers who may or may not be members of a formal securities exchange. The over-the-counter market is conducted over the telephone and is a negotiated market rather than an auction market such as the NYSE.3
Oversubscription -
Occurs when demand for shares exceeds the supply or number of shares offered for sale. As a result, the underwriters or investment bankers must allocate the shares among investors. In private placements, this occurs when a deal is in great demand because of the company’s growth prospects.3
Oversubscription Privilege -
In a rights issue, arrangement by which shareholders are given the right to apply for any shares that are not purchased.3
