Glossary

Learn the role of the AMF (Autorite des Marchés Financiers), France's Financial Sector Regulator

Learn how crucial AML is for VC funds to maintain clean capital and protect their reputation

AUM represents the total value of investments managed by a financial institution.

Discover how angel investors use their personal funds to support startups, trading capital for equity or convertible debt.

A Bear Market is a period in the financial markets when the prices of securities are falling.

Learn how this type of financing is used when a company needs a short-term capital infusion.

A Bull Market is a period in the financial markets when the prices of assets are rising or are expected to rise

Learn the role of the CSSF (Commission de Surveillance du Secteur Financier), Luxembourg's Financial Sector Regulator

Understand how cap table works as a crucial tool in the world of investment.

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

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

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

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.

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

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

Drag-along rights enable majority shareholders to compel minority participation in a sale, simplifying transactions.

Learn more about the process of selling shares of the company to raise capital.

An investment fund is a pool of capital from the fund's investors, dedicated to make one or several investments.

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

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 a carried interest.

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

KYC is a vital process in venture capital, verifying investor identities to reduce risks, including reputational damage and regulatory penalties.

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

The Most Favoured Nation clause is a protective measure for early investors.

What does multiple mean in the investment context? The exit multiple is a measure of the performance of an investment. Learn how to compute it here

Both of these terms are crucial in determining how much of the company an investor will own after the investment.

Grant existing shareholders priority to buy new shares in initial offerings, distinct from pro-rata rights.

ROFO: Allows existing shareholders to buy shares before external parties, with a time constraint, differing from ROFR.

In the investment world, a round refers to a private company offering shares to investors.

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

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

How tag-along rights safeguard minority shareholders in a majority-initiated sale?

Know why UBO is crucial for compliance with anti-money laundering laws and understanding who is actually in control of a company.

A unicorn is a company valued more than 1 billion USD.

What is a venture round and how does it function in the context of startup funding?

A Zombie Company is a firm that, although still in operation, is unable to grow or cover its debt servicing costs with its current earnings