The part of the Bankruptcy Code that provides for liquidation of a company’s assets.³

The part of the Bankruptcy Code that provides for reorganization of a bankrupt company’s assets.³

The amount of cash available to a company at a given point in time.³

or “Carry³” The portion of any gains realized by the fund to which the fund managers are entitled, generally without having to contribute capital to the fund. Carried interest payments are customary in the venture capital industry, in order to create a significant economic incentive for venture capital fund managers to achieve capital gains.³

To record an outlay as an asset (as opposed to an expense), which is subject to depreciation or amortization.³

A table depicting the quantity of shares or unit ownership which is held by each investor in a corporation or LLC, typically including founders’ equity, investor equity, and advisor / employee Stock Option Pools.⁶

• The difference between an asset’s purchase price and selling price, when the selling price is greater. Long-term capital gains (on assets held for a year or longer) are taxed at a lower rate than ordinary income.³
• Capital Gain is the gain to investor from selling a stock, bond or mutual fund at a higher price than the purchase price. The capital gain is usually the amount realized (net sales price) less your investment (adjusted tax basis) in the property. A capital gain may be short-term (one year or less) or long-term (more than one year) and must be claimed on income taxes.⁵

The amount of capital available to a angel or VC Fund’s management team for startup venture investments.⁶

Financial capital is a term that can refer to the money exchanged between entrepreneurs and investors during a business deal. Entrepreneurs need to raise capital for their startups while investors can provide them with the needed capital (or funding). Financial capital usually comes with interest, and new business owners can use their financial capital in purchasing real capital (or machinery or equipment) for their new business.⁴

The right to buy a security at a given price (or range) within a specific time period.³