Registration is the process of notifying the SEC that the company plans to sell shares to the public and to register the shares with the SEC under the Securities Act of 1933.
A Redline is a document which has been marked up with comments or modifications and has been “redlined” so that the other party can easily identify the changes.
Recurring Revenue is the measure of revenue components that are recurring in nature. This excludes one-time (non-recurring) fees and professional service fees.
A Rolling Close is a fundraising structure that is not limited by a predetermined value and allows a company to receive investments on an ongoing basis. After an initial investment closing, additional investors are allowed to invest in the same […]
A Runaway Valuation is a valuation that soars due to illogical reasons (i.e. unjustified investor demand for a hot startup). Runaway valuations can be harmful to the next funding round, or set a future valuation target that is untenable.
A Rolling Launch is a launch in which a startup follows a carefully laid plan of outreach activities during the weeks before and after the actual event. A Rolling Launch may include making the product available to industry influencers in […]
A startup reaches Ramen-Profitability when it is making enough money to cover costs and living expenses for its staff.
Reverse Vesting is when founders receive all their shares and rights in those shares up front, but the shares are subject to repurchase by the company if the founder leaves. Then, the vesting schedule details that the longer the founder […]
Rule 701 is a broad federal securities registration exemption in the Securities Act of 1933 which exempts equity incentive securities if the securities are granted through a written agreement and in accordance with a written plan.