Startup Glossary

Advisory Board is a group of external advisors providing strategic advice to a company`s management without authority to vote on corporate matters, unlike a Board of Directors.

Advisory Capital is a form of investment where, in addition to or instead of monetary support, investors provide expertise, mentorship, and industry connections to help a startup grow.

Advisory Equity is equity granted to advisors of a startup in exchange for their guidance and expertise, typically issued as stock options or shares.

Advisory Shares are equity shares allocated to advisors of a company in recognition of their guidance and advice, typically requiring less capital investment compared to traditional equity stakeholders.

Affiliate Agreement is a contract between two parties where one party agrees to promote the other`s products or services in exchange for a commission. Startups may use affiliate agreements to generate revenue or raise brand awareness.

Affiliate Marketing is a performance-based marketing strategy where a business rewards affiliates for each visitor or customer brought by the affiliate`s marketing efforts, often used by startups for cost-effective growth.

Affiliate Revenue is revenue generated through affiliate marketing where a startup earns commissions by promoting another company`s products or services.

Agile Capital is flexible funding that allows startups to adapt and pivot their business model based on market feedback without stringent use restrictions.

Agile Development Funding is a funding strategy that supports the principles of agile development, allowing startups to iteratively develop products and adapt to market feedback, with financial backers that understand the need for flexibility and rapid pivots.

Agile Funding is a financing strategy offering startups flexible funding options adaptable to the startup’s growth stages and milestones.

Allocation is the process of distributing shares or capital among various investors or projects.

Alpha Funding is early-stage funding provided to startups to develop an alpha version of their product, demonstrating its feasibility and potential market value.

Alpha Investors are early-stage investors who are often the first to back a startup, providing not only capital but also mentorship and access to networks.

Alpha Version is the first version of a product, typically software, that is used internally to test and validate the concept before developing a more refined beta version. Demonstrating an alpha version can help attract early-stage investors by showing progress and potential.

Alternative Investment includes investments in assets other than stocks, bonds, and cash, such as real estate, hedge funds, venture capital, commodities, and tangible assets.

Angel Financing is a round of funding where angel investors provide capital to startups for early-stage development, in exchange for equity or convertible debt.

Angel Group is an organized network of angel investors who pool their resources to invest in startup companies, providing not only capital but also mentorship and access to a wider network.

Angel Investment Network is a group of angel investors organized to provide funding, mentorship, and advice to startups and entrepreneurs, often facilitating connections and pooling resources for investment opportunities.

Angel Investor is an affluent individual who provides capital for a business startup, usually in exchange for convertible debt or ownership equity.

Angel Investor Syndicate is a group of angel investors who pool their capital to invest in startups, often led by a syndicate lead who coordinates the investment and represents the group in negotiations.