The investor lingo

Uncover the mechanics of SPV that effectively balances opportunity with risk management, alongside other multifaceted benefits and challenges.

It refers to a financial vehicle that uses the collective funds of a group of individuals, companies, or other investment funds to invest in financial instruments.

Know the differences between common stock and preferred stock, in terms of voting rights and dividend priority in a company.

These are funds provided by investors or partners for use in making investments in assets or companies.

What is a FoF investment strategy, and what are the benefits and drawbacks for investors, including LPs?

Learn how a capital call, also known as a drawdown, works as a request from an investment firm to investors.

Learn how this type of transaction allows early investors to liquidate their holdings.

Learn how "Fund" serves as a capital pool for startup investments.

Know how General Partner (GP) plays a pivotal role in managing funds and making investment decisions.

The "Hurdle Rate" in venture capital is the minimum return required for General Partners to start earning profits.

Carried interest aligns investment managers' interests by granting a share of profits beyond their contributions.

LPs are vital investors in venture capital, providing capital for GPs to invest in startups.

What is a convertible note, and how does it work in the context of startup financing?

Distributions are returns of capital and profits to investors from a fund's investments.

What is Total Value Paid In (TVPI) in venture capital, and how is it calculated to assess investment performance?

How does the presence of a cap on the potential return affect an investor's prospects?

DPI (Distributed to Paid-In) is a vital venture capital metric used by LPs to evaluate fund performance.

Is the Internal Rate of Return (IRR) a reliable metric for venture capital investments?

What does multiple mean in the investment context?