Drive-By VC is a term used to describe VCs who usually just make investments and do not offer other support or guidance.
Dry Powder is the amount of money that a VC or investor has available to make investments.
Due Diligence is the process an investor goes through prior to making an investment in a company. This typically includes meeting and interviewing the founders and key stakeholders, reviewing company documents and financials, and interviewing customers, when applicable.
Demand Registration Rights are rights that give an investor the right to force a company to register its shares for sale to the public. These rights are typically contained in Series A and later financing rounds.
Double Trigger Acceleration is the partial or full acceleration of vesting of an employee’s options or stock based on the occurrence of two distinct events. Most typically, the two events are the sale of the company and the involuntary termination […]
Drag Along Rights are the rights of majority investors who are selling their equity in the company to force minor investors to sell their equity interest as well.
A Data Room is an online repository of company docs. Typically, a startup will create a data room of relevant company docs to share with potential investors. This is preferred to emailing out docs because the startup can keep them […]
The Date of Issue is the date that the securities (shares or units) are issued to an investor.
Debt Financing is raising money for working capital or capital expenditure through some form of a loan.
The Debt-to-Equity Ratio is a debt ratio used to measure a company’s financial leverage, calculated by dividing a company’s total liabilities by its stockholders’ equity. The D/E ratio indicates how much debt a company is using to finance its assets […]