A relatively new type of online financing solution through which individuals lend money to other individuals or small businesses.⁷

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

A putative problem that has, or may occur if more companies get early stage funding from angels and seed funds than are eventually able to obtain later stage funding from venture capital funds.⁷

As used in investment term sheets, any investor who puts in more than a defined amount into a given round and is therefore entitled to specific information and / or voting rights.⁷

When a private company publicly seeks investors in connection with an equity offering.  Previously prohibited by US securities law, now permissible under certain conditions according to the JOBS Act of 2012.⁷

Any online website used to facilitate investments in private companies.  As a defined term, a specific type of platform defined by the JOBS Act of 2012 that will allow non-Accredited investors to invest in private offerings.⁷

An investment in a company that often follows the founder’s own investment, from people who are investing primarily because of their relationship with the founder rather than their knowledge  of the business.⁷

The common stock owned by one or more of the company’s founders, typically received when the company was incorporated and not purchased for cash.⁷

When an entrepreneur first sells a part of his or her business – and therefore a proportional part of the good things (like profits) and the not-so-good things (like losses) – to an investor. Equity investments, unlike loans, do not need to be paid back.⁷

A person who organizes and operates a business or businesses, taking on greater than normal financial risks to do so.  Entrepreneurs are the founders of startups and are the people angel investors support.⁷