Entrepreneur Dictionary for Startups

The entrepreneur dictionary for startups contains terms and definitions commonly used by entrepreneurs, investors, accelerators, and others who interact with startup ventures and startup financing.
For more entrepreneur resources check out our  Acronyms for Startups, Infographics, or Startup FAQ.

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Tag Along/Drag Along -  Provisions in a Shareholders Agreement that permit investors under certain defined circumstances to sell their shares if you sell yours (tag), or force you to sell your shares if they sell theirs (drag).7
Tag-Along Rights / Rights of Co-Sale -  A minority-shareholder protection affording the right to include their shares in any sale of control and at the offered price.3
Takedown Schedule -  A takedown schedule means the timing and size of the capital contributions from the limited partners of a venture fund.3
TAM -  Total Addressable Market
TAV -  Tangible Asset Value
Tax-free Reorganizations -  Types of business combinations in which shareholders do not incur tax liabilities. There are four types — A, B, C, and D reorganizations. They differ in various ways in the amount of stock/cash that can be offered.3
Tender offer -  An offer to purchase stock made directly to the shareholders. One of the more common ways hostile takeovers are implemented.3
Term Loan -  A loan that is paid off in a set period of time, usually in equal monthly installments throughout the duration (or term) of the loan. Term Loans can be a secured or unsecured loans.6
Terms Sheet -  A non-binding agreement or template that outlines an overview of the terms and conditions between the entrepreneur and investor, which will ultimately be incorporated in the definitive investment agreements between the parties.6
Time Value of Money -  The basic principle that money can earn interest; therefore, something that is worth $1 today will be worth more in the future if invested. This is also referred to as future value.3
TM -  Trademark
Trademark -  An identifying word, phrase, design or symbol that permits third parties to distinguish and differentiate the goods of differing parties. Trademarks are registered with the appropriate governmental offices such as the United States Patent and Trademark Office, (USPTO).6
- Synonyms: TM
Treasury Stock -  Stock issued by a company but later reacquired. It may be held in the company’s treasury indefinitely, reissued to the public, or retired. Treasury stock receives no dividends and does not carry voting power while held by the company.3
Trust Indenture -  Agreement between the Company, the debt holders, and the trustee for the debt holders. Required for registered offerings of debt securities. (See Trust Indenture Act of 1939.)3
TS -  Term Sheet
TSA -  Transitional Services Agreements
Turnaround -  Turnaround is the term used when the poor performance of a company or the business experiences a positive reversal.9

Notes: 

  1. Source: Crowdfunding Professional Association website
  2. Source: 37 Angels website
  3. Source: Angel Capital Association website
  4. Source: Go4Funding website
  5. Source: FundingPost website
  6. Source:  FundingSage, LLC
  7. Source:  Angel Investing,  by David S. Rose
  8. Source: Institutional Limited Partners Association website
  9. Source: Venture Choice website

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