Investment Terminology

A group of angel investors who collaborate to fund startups.

The first formal funding round provided by angel investors to a startup.

A high-net-worth individual who provides financial backing for small startups or entrepreneurs, typically in exchange for ownership equity in the company. Angel investors often invest their own funds and may provide mentorship and advice.

An accelerator is a structured, time-bound program designed to support early-stage startups by providing mentorship, funding, training, and access to investors. Accelerators typically culminate in a demo day, where startups pitch their businesses to potential investors.

Assets Under Management (AUM) represent the total market value of all investments that a financial institution, investment firm, or fund manages on behalf of its clients. AUM is commonly used as an indicator of a firm’s size, influence, and ability to attract and manage capital.

An angel syndicate is a group of angel investors who pool their resources to invest collectively in startups. This allows investors to share risk and access larger deals while providing startups with coordinated support.

Anti-dilution protection is a clause that protects investors from a decrease in ownership value if new shares are issued at a lower valuation. It adjusts the conversion price to reduce the impact of dilution.

To start and grow a business using personal finances or operating revenues, without external funding. Bootstrapping allows founders to maintain full control but may limit growth potential.

Burn rate refers to the rate at which a startup spends its available cash over a specific period, typically measured monthly. It is a key indicator of how long a company can operate before it needs additional funding or becomes cash-flow positive.

A business model describes how a company creates, delivers, and captures value. It outlines the company’s products or services, target customers, revenue streams, cost structure, and key operations that enable sustainable growth and profitability.