Under performance-based vesting, options Vest only if specified performance criteria are met. For example, options may vest if annual earnings per share exceed a certain target by a specified date.⁹

Mezzanine level is a term used to describe a company which is somewhere between startup and IPO. Venture capital committed at mezzanine level usually has less risk but less potential appreciation than at the startup level, and more risk but more potential appreciation than in an IPO.⁹

Management buy-out is the term used for the funds provided to enable operating management to acquire a product line or business, which may be at any stage of development, from either a public or private company.⁹

Management buy-in is the purchase of a business by an outside team of managers who have found financial backers and plan to manage the business actively themselves.⁹

Fundless equity sponsors are sourcing and vetting deals without any committed capital, lining up financial sponsors on a deal-by-deal basis.⁹

First stage capital is the money provided to entrepreneur who has a proven product, to start commercial production and marketing, not covering market expansion, de-risking, acquisition costs.⁹

First-round financing is the first investment in a company made by external investors.⁹

An exit route is the method by which an investor would realize an investment.⁹

A drive-by deal is slang term often used when referring to a deal in which a venture capitalist invests in a startup with the goal of a quick exit strategy. The VC takes little to no role in the management and monitoring of the startup. ⁹

Capital Expenditures is money spent by a company to add or expand property, plant, and equipment assets, with the expectation that they will benefit the company over a long period of time (more than one year).⁹