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30+ VC jargons and acronyms you should know

2 points by vskarine 11y ago

deleted 11y ago
[deleted]
vskarine 11y ago
VC/ Legals TS = Term Sheet, a sheet summarizing the commercials of an investment agreement contract SHA = Shareholders Agreement, the contract defining the relationship amongst the company and the shareholders and amongst the shareholders CT = Cap Table or Capitalization Table, a document (usually a spreadsheet) that states who owns what % of shares in the company ROFR = Right of First Refusal, in case existing shares of the company are sold, shareholders with a ROFR will have the option to buy those shares, ratably, before they are offered to new investors Liq Pref = Liquidation Preference, a right attached to a specific class of shares that regulates the order of priority in case of a liquiditiy event (simply put: who gets the $ first in case there is not enough to make everybody happy) Pre = Pre Money or Pre Money Valuation, one key term of the term sheet, it is the valuation of the company that determines the price per share for a capital increase Post =Post Money or Post Money Valuation, Post = Pre + capital injection LPs = Limited Partners, these are the investors of the VC funds GPs = General Partners, there are commonly known as Partners and are the manager of the VC fund, deciding the allocation of the investments General Financials KPIs = Key Performance Indicators, a set of numbers/ ratios displaying the performance of a company GMV = Gross Merchandise Value, total monetary value of transactions taking place on a marketplace MRR = Monthly Recurring Revenues, the kind of revenues that SaaS and subscription based companies are earning ARR = Annual Recurring Revenues, MRRx12 EBITDA = Earnings Before Interests Taxes Depreciation Amortization EBIT = Earnings Before Interests Taxes COGS = Cost Of Goods Sold LTM = Last Twelve Months YTD = Year To Date MoM = Month on Month YoY = Year on Year H1/H2 =1st Half of the year/ 2nd Half of the year Q1/Q2…= 1st Quarter of the year/ 2nd Quarter of the year… FY = Fiscal Year CAGR = Compound Annual Growth Rate CAPEX = Capital Expenditure, expenditures required by a company to improve operations, it can be for example the purchase of machinery and properties IPO = Initial Public Offering, when a company offers its shares to the public markets and gets listed VC Financials ROI = Return On Investment, Return/ Investment -1 Money Multiple = Shares Value now/ Total Investment Valuation Multiple = Company Valuation now / Company Valuation at the time of initial investment IRR = Internal Rate of Return EV = Enterprise Value, the equity value + debt value (net of cash) NAV = Net Asset Value, the total valuation of the assets in a fund AUM = Assets Under Management, basically how many $ a VC fund is managing MF = Management Fees, a fixed % of the AUM through which VCs finance the fixed costs of running a VC fund

2 points by vskarine 11y ago

deleted 11y ago

[deleted]

VC/ Legals TS = Term Sheet, a sheet summarizing the commercials of an investment agreement contract SHA = Shareholders Agreement, the contract defining the relationship amongst the company and the shareholders and amongst the shareholders CT = Cap Table or Capitalization Table, a document (usually a spreadsheet) that states who owns what % of shares in the company ROFR = Right of First Refusal, in case existing shares of the company are sold, shareholders with a ROFR will have the option to buy those shares, ratably, before they are offered to new investors Liq Pref = Liquidation Preference, a right attached to a specific class of shares that regulates the order of priority in case of a liquiditiy event (simply put: who gets the $ first in case there is not enough to make everybody happy) Pre = Pre Money or Pre Money Valuation, one key term of the term sheet, it is the valuation of the company that determines the price per share for a capital increase Post =Post Money or Post Money Valuation, Post = Pre + capital injection LPs = Limited Partners, these are the investors of the VC funds GPs = General Partners, there are commonly known as Partners and are the manager of the VC fund, deciding the allocation of the investments General Financials KPIs = Key Performance Indicators, a set of numbers/ ratios displaying the performance of a company GMV = Gross Merchandise Value, total monetary value of transactions taking place on a marketplace MRR = Monthly Recurring Revenues, the kind of revenues that SaaS and subscription based companies are earning ARR = Annual Recurring Revenues, MRRx12 EBITDA = Earnings Before Interests Taxes Depreciation Amortization EBIT = Earnings Before Interests Taxes COGS = Cost Of Goods Sold LTM = Last Twelve Months YTD = Year To Date MoM = Month on Month YoY = Year on Year H1/H2 =1st Half of the year/ 2nd Half of the year Q1/Q2…= 1st Quarter of the year/ 2nd Quarter of the year… FY = Fiscal Year CAGR = Compound Annual Growth Rate CAPEX = Capital Expenditure, expenditures required by a company to improve operations, it can be for example the purchase of machinery and properties IPO = Initial Public Offering, when a company offers its shares to the public markets and gets listed VC Financials ROI = Return On Investment, Return/ Investment -1 Money Multiple = Shares Value now/ Total Investment Valuation Multiple = Company Valuation now / Company Valuation at the time of initial investment IRR = Internal Rate of Return EV = Enterprise Value, the equity value + debt value (net of cash) NAV = Net Asset Value, the total valuation of the assets in a fund AUM = Assets Under Management, basically how many $ a VC fund is managing MF = Management Fees, a fixed % of the AUM through which VCs finance the fixed costs of running a VC fund