A misnomer describing micro VCs.  True super angels are active angels who make many significant investments, find and negotiate investments, and can bring other investors along with them.⁷

A percentage commission paid to an intermediary or other individual as an incentive on the closing of a large financing transaction.⁷

A North American association of angel groups, accredited investors and family offices which promotes public policies for investors and startups. The association provides investors access to trending ideas and professional knowledge and entrepreneurs insight into how angels think. See www.angelcapitalassociation.org  for more information.⁶

Internal testing, of a pre-production model, typically on a controlled basis, with the objective of identifying functional deficiencies and design flaws.⁶

Turnaround is the term used when the poor performance of a company or the business experiences a positive reversal.⁹

Royalty based financing presumes a fundamental trade-off between the investor and the business owner. In lieu of an equity ownership stake given to the investor, business owners agree to return to the investor the original principal plus either a predetermined multiple of the original investment (fixed dollar payback) or payment of the royalty until a fixed period of time has elapsed (fixed time payback). In some cases the royalty is based on a percentage of sales of a specific product or set of products.⁹

Retained earnings are the corporate profits that are neither paid out in cash dividends to stockholders nor used to increase capital stock, but are reinvested in the company. It is calculated by adding company’s net income to beginning retained earnings and subtracting any dividends paid to shareholders.⁹

Raising capital refers to obtaining capital from investors or venture capital sources.⁹

A pro forma is a description of financial statements that have one or more assumptions or hypothetical conditions built into the data. A financial projection based on assumptions. Also, refers to a statement of income and balance sheets that exclude non-recurring items.⁹

A prepaid warrant is a warrant issued by an issuer entitling the holder to exercise into a specified number of different securities, for no additional financial consideration, during a specified time period.⁹