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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Valley of Death - The period between the initial funding and the end of the runway. If you get through here, you should be okay. If not...⁷

Valuation - The process of establishing the value or worth of an asset or a company. Factors impacting company valuation include it's market, management, technology, assets, capital structure and prospective future cash flows. ⁶

Value Proposition - A statement a company utilizes to express why customers should purchase their product or service, as compared to that of a competitor. The objective of the statement is to convince potential customers that their product or service adds more value than that of alternative offerings.⁶

Vanity Metrics - Information and data collected by and about a company, its management or its users that serve little purpose beyond internal emotional validation of the company. Such information and data lack the quality and depth to support business decisions.⁶

Vaporware - A public announcement of new hardware or software prior to the products actual development. Often the product is never released and announcements are not rescinded; hence the reference to "vapor".⁶

VC - Venture Capital / Venture Capitalist

VDR - Virtual Data Room

Venture - Venture is often used for referring to a risky start-up or enterprise company.⁵

Venture Capital - Investment capital made available to high growth, scalable startups, typically beginning at the early stage, from a fund supported by accredited investors.⁶

Venture Capital Financing - A type of private equity investment provided to early stage high growth startup companies in the latter stages of development, which have the potential for exceptional financial returns. Such venture capital investments typically range from $250,000 to $10 Million.⁶

Venture Capital Firm - Venture Capital Firm is an investment company that invests its shareholders' money in startups and other risky but potentially very profitable ventures.⁵

Venture Capital Funds - Venture capital funds pool and manage money from investors seeking private equity stakes in small and medium-size enterprises with strong growth potential.⁵

Venture Capital Limited Partnership - Venture Capital Limited Partnership is a limited partnership which is formed to invest in small startup businesses with exceptional growth potential.⁵

Venture Capitalist - A group of high net worth investors who pool their money to invest in later stage startup companies.⁶

Venture Debt - A type of debt financing provided to venture-backed companies from specialized banks or non-bank lenders.⁷

Vesting - A process in which you “earn” your stock overtime. The purpose of vesting is to grant stock to people over a fixed period of time so they have an incentive to stick around. A typical vesting period for an employee or Founder might be 3 - 4 years, which would mean they would earn 25% of their stock each year over a 4 year period. If they leave early, the unvested portion returns back to the company.²

Vesting Schedule - A timetable and methodology under which a startup releases shares to employees, management, founders, advisors, board members and other company stakeholders.⁶

Voicemail Script - A short, clear, crisp engaging message which provides a succinct overview of your startup concept and business model and can be shared via either email or telephone as a reply to potential investors who have expressed an interest in your opportunity.⁶

Voting Right - The common stockholders’ right to vote their stock in the affairs of the company. Preferred stock usually has the right to vote when preferred dividends are in default for a specified amount of time. The right to vote may be delegated by the stockholder to another person.³

VPN - Virtual Private Network

Vulture Capitalist - A VC whose operating method is to diliberetely take advantage of an entrepreneur's troubles.⁷

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