## Funding Rounds

### Pre-Seed Round
The earliest stage of funding, typically used to develop a prototype or minimum viable product before seeking more substantial investment.

### Seed Round
Early-stage funding used to support initial market research, product development, and establishing a founding team.

### Series A
First significant round of venture capital financing, typically sought after achieving product-market fit and demonstrating growth potential.

### Series B
Funding round focused on scaling the business, expanding market reach, and growing the team after demonstrating successful execution.

### Series C and Beyond
Later-stage funding rounds aimed at accelerating growth, entering new markets, or preparing for an IPO or acquisition.

### Bridge Round
Short-term funding to 'bridge' the gap between major financing rounds, often used when a startup needs additional capital before securing its next planned round.

## Valuation Terms

### Pre-money Valuation
The valuation of a company before it receives the latest round of funding.

### Post-money Valuation
The valuation of a company after it receives the latest round of funding (pre-money + new investment).

### Cap Table
Short for 'capitalization table', a spreadsheet showing the equity ownership stakes in a startup, including all shareholders and their respective ownership percentages.

### Unicorn
A privately held startup company valued at over $1 billion.

### Decacorn
A privately held startup company valued at over $10 billion.

### Dilution
The reduction in ownership percentage of existing shareholders when new shares are issued during a funding round.

## Investment Structures

### Convertible Note
A short-term debt instrument that converts into equity at a future financing round, typically with a discount and/or valuation cap.

### SAFE (Simple Agreement for Future Equity)
An investment instrument created by Y Combinator that gives the investor the right to receive equity in a future funding round without being debt.

### Equity Financing
Raising capital by selling shares in a company, typically with specific rights, preferences, and privileges.

### Preferred Shares
A class of stock that has priority over common stock in dividend payments and assets in case of liquidation, often with additional rights and privileges.

### Term Sheet
A non-binding document outlining the basic terms and conditions of an investment, which serves as a template for more detailed legal documents.

## Investor Types

### Angel Investor
An individual who invests their personal capital in early-stage startups, often providing mentorship and connections in addition to funding.

### Venture Capital (VC)
Professional investment firms that manage pooled funds from limited partners to invest in high-growth potential startups.

### Lead Investor
The investor who sets the terms and often contributes the largest amount in a funding round, typically taking a more active role in the company.

### Strategic Investor
A corporate entity that invests in startups that align with their strategic interests, often providing industry expertise and market access.

### Family Office
Private wealth management advisory firms that serve ultra-high-net-worth individuals or families by investing their money, including in startups.

## Exit Strategies

### IPO (Initial Public Offering)
The process of offering shares of a private company to the public in a new stock issuance, allowing a company to raise capital from public investors.

### M&A (Mergers and Acquisitions)
The consolidation of companies through various financial transactions, including mergers, acquisitions, and takeovers.

### Acquihire
The process of acquiring a company primarily for its talent rather than its products or services.

### Secondary Market
The buying and selling of existing shares of private companies by investors, employees, or founders, providing liquidity without a public offering.