Annual Recurring Revenue (ARR) is the amount of revenue a company generates from recurring payments over a year.
An Allocation Schedule is a schedule or attachment, typically to an Asset Purchase Agreement, that separates the purchase price among the assets being purchased in accordance with their general value. The Allocation Schedule is broken up into seven categories of […]
Actual knowledge is the knowledge that an individual person has in his/her brain. If an entity is involved, Actual Knowledge means the knowledge in the brains of the officers, directors, or other persons designated in the agreement as relevant for […]
Accredited Investor is defined under the Securities Act of 1933. Anyone (individual or entity) who meets the definition is able to invest in certain private offerings. Simply put, an accredited investor is an individual with a net worth (individually or […]
An Acceleration Clause refers to a contractual clause which allows debt owed over time to be “accelerated” so that it is owed immediately. You see this most often in promissory notes, where a default or breach of a provision of […]
Accelerated Vesting is a process whereby a holder of restricted equity has the vesting schedule sped-up, or accelerated, upon the occurrence of a certain event or events, i.e. termination of the holder without cause or a sale of the company.
An At-Will Employee is an employee who does not have an employment agreement and can be terminated by the company for any reason.
An Associate is a person at a venture capital firm who is involved in deal analysis and management. The seniority of this position varies by firm, but generally associates need a partner to support their activities.
An Analyst is a very junior person at a venture capital firm, often a recent college graduate.
Alpha Testing refers to internally testing a pre-production model of a product, typically on a controlled basis, to work out the kinks without anyone else seeing it.