Dry Powder

Money held in reserve by a venture fund or angel investor in order to be able to make additional investments in a company.7

Sniff Test

A colloquial expression referring to a quick assessment of a situation to see whether it appears legitimate.7

Social Venture

A startup enterprise established to benefit society utilizing entrepreneurial methods. Social ventures may be either a “for-profit” or a “non-profit” entity.6

Soft Landing

A face-saving acquisition of an unsuccessful startup, usually for little or no compensation.7

Spray and Pray

Investing in an array of companies in the hopes that one of them will become a unicorn.6

Up-round

When the valuation of a company at the time of an investment round is higher than its valuation at the conclusion of the previous round.7

Vulture Capitalist

A VC whose operating method is to diliberetely take advantage of an entrepreneur’s troubles.7

Waterfall

The order in which investors (and everyone else) get their money out on an exit.  Almost always this is “last in, first out.”7

Walking Dead

A company that isn’t bankrupt, but will never succeed, and thus can’t be sold or otherwise exited.7

Zombie Fund

A VC firm that is unable raise a new fund, and thus is unable make investments in new opportunities.6