An Executive Managing Director is a senior partner in a venture capital firm who is superior to a managing director or general partner.
An Escrow Cap is the amount of money in a merger that is set aside to remedy breaches of the merger agreement.
An Exit Strategy is a company’s plan to sell the company or undergo an initial public offering once the company has reached a certain level of success.
An Exit Event is an event where founders and early investors can sell their interest in a company for cash. An exit can be an initial public offering (IPO) or an acquisition by another company.
Exercising Stock Options means the option holder purchases the underlying stock, at the exercise price, in accordance with the option agreement.
Earnings Before Interest and Taxes (EBIT) is an operating profit metric. The EBIT is determined by excluding interest and taxes from expenses and then subtracting those expenses from revenues. Companies’ values are often projected as multiples of EBIT.
EBITDA is essentially net income with interest, taxes, depreciation, and amortization added back to it.
An Employer Identification Number (EIN) is the number issued by the IRS to a company that identifies the company as a taxpayer in the US. An EIN is required for a company to open up a bank account and file […]
An Elevator Pitch is a brief description of a startup. It should be brief enough to be delivered during an elevator ride.
An Employee Stock Option Plan (ESOP) is a company issued plan that allows a company to grant options to its employees and service providers.