The founder lingo

Understand how cap table works as a crucial tool in the world of investment.

In the investment world, a round refers to a private company offering shares to investors.

In venture deals, side letters are extra agreements that customize terms for specific investors.

Discover how angel investors use their personal funds to support startups, trading capital for equity or convertible debt.

Learn how this type of financing is used when a company needs a short-term capital infusion.

What is a venture round and how does it function in the context of startup funding?

Learn more about the process of selling shares of the company to raise capital.

Both of these terms are crucial in determining how much of the company an investor will own after the investment.

The Most Favoured Nation clause is a protective measure for early investors.

Grant existing shareholders priority to buy new shares in initial offerings, distinct from pro-rata rights.

ROFO: Allows existing shareholders to buy shares before external parties, with a time constraint, differing from ROFR.

How tag-along rights safeguard minority shareholders in a majority-initiated sale?

Drag-along rights enable majority shareholders to compel minority participation in a sale, simplifying transactions.

What is the Right of First Refusal? What does it mean to you and to your investors?