Licensed individuals or firms, which charge a fee, to raise capital for startup companies from private investors and funds.⁶

A contractual term/condition which provides the investor the option to compel the company to purchase their shares.⁶

Insurance obtained by portfolio companies to cover the costs of legal expenses associated with claims against its’ board members and protect them from lawsuits.⁶

A contractual term/condition which provides the company the option to compel the investor to sell their shares.⁶

When founders of a company agree that they will give back part of their stock holdings if they leave the company before a specified date (typically four years).  This is usually required by investors, and a good thing for founders themselves in the case of multiple founders.⁷

A theorem that suggests that the average of results obtained from a large number of trials should be close to the expected value, assuring stable long-term results for the averages of random events. When applied to angel investing, it suggests that large portfolios of investments, made consistently over time, will return significantly positive results.⁷

A leading question-and-answer website where many industry experts in early stage investing answer questions.⁷

In the startup world, an advisor who helps guide and support a new company.⁷

The appearance of a graph showing the typical value progression of early stage investment portfolios.  Values often drop soon after the initial investment during the startup and early stage period, but rebound significantly in later years after companies reach profitability.⁷

In the context of angel funding and startups, a colloquial term used to describe the loose association of people previously involved with a highly successful technology company, such as Google, Facebook, Paypal or LinkedIn, as founders, early employees or investors.⁶