A SaaS business is one whereby software is licensed to end users from a central location, usually delivered via the web. “SaaS” stands for “software as a service” and customers are generally billed monthly. Microsoft Office 365, Dropbox, Google G […]
Smart Money is investment dollars from professional investors – i.e. venture funds or experienced angel investors.
A Stock Purchase Agreement is a legally binding contract whereby a purchaser (oftentimes an investor) agrees to purchase shares of a company in exchange for consideration. The consideration is almost always cash, but it could be services or a promissory […]
A Stock Split is when a company divides its shares into additional shares. The total value of the shares remains the same, but each shareholder will own two or three times more shares.
A Stockholder is the same thing as a “shareholder,” or the owner of stock (a.k.a shares) of a corporation. Stockholders can be individuals or entities.
Subordinated Debt is debt that ranks lower in priority than another particular debt if a company falls into bankruptcy or has to liquidate. You may also see it referred to as “junior debt,” a “junior security,” or a “subordinated loan.”
A Super Majority is a designated percentage (usually 67%) required to take certain actions – usually major decisions like selling the company.
Sweat Equity is the ownership interest, or increase in value, that is the direct result of hard work by the startup owner(s). For the startups out there – please do not plan to be paid, or repaid, for your sweat […]
A Syndicate is a group of unrelated investors who band together for an investment round. The word can also be used as a verb – “syndicate a round.”
Stockholders’ Consent is when some corporate actions such as the sale of the company require the stockholders to consent to the company taking such action.