Startup Glossary

Angel Round is a round of financing where angel investors provide capital to a startup in exchange for equity, typically occurring early in a company`s lifecycle.

Angel Syndicate is a group of angel investors who pool their financial resources to invest in startups or early-stage companies, often led by a lead investor who negotiates the terms of the investment.

Annual Recurring Revenue (ARR) is the amount of money that a company expects to receive from its customers annually for providing them with products or services, assuming all subscriptions continue over a full year.

Annual Run Rate is an estimation of a startup`s revenue or expenses over a year, based on data from a shorter period. It`s often used to project future financial performance from current results.

Anti-Dilution Provisions are legal provisions that protect investors from dilution of their ownership percentage if the company issues more shares at a lower price than previously paid.

Anti-Dilutive refers to financial transactions or corporate actions that do not decrease the ownership percentage of existing shareholders when new shares are issued.

API Monetization is the process by which companies generate revenue through their APIs, either by charging for access or through indirect methods such as data insights services.

Application Programming Interface (API) Economy is the marketplace that emerges when companies expose their digital services or functionalities through APIs, enabling startups to develop new technologies or services on top of existing platforms.

Articles of Incorporation is a document establishing the existence of a corporation, spelling out its purpose, authorized share capital, and other operational rules.

Artificial Intelligence (AI) Funding are investments specifically directed towards startups and businesses developing or utilizing AI technology for their products, services, or operational improvements.

Artificial Intelligence in Fundraising is the use of AI technologies to optimize fundraising efforts, from predicting donor behavior to automating communication strategies.

Asset is anything of value owned by the company, which can be current, fixed, tangible, or intangible.

Asset-Based Financing is a method of financing where a startup borrows money based on its asset values.

Asymmetric Information occurs when one party in a transaction has more or superior information compared to another, often seen in startup fundraising where founders may have more information about the startup`s potential than investors.

Asynchronous Funding is a funding approach that does not require simultaneous investment from all parties, allowing startups to raise capital from different investors at different times based on agreed-upon milestones.

At-the-Market Offering (ATM) is a type of offering from a company that is made at the current market price of its shares.

Attribution Analysis is a method used in finance to analyze the performance of investments by looking at the various factors that contributed to the investment`s return over a certain period, applicable in evaluating startup investment returns.

Attribution Rights are rights that allow startup investors to receive additional shares or benefits if certain performance milestones are achieved, ensuring fair compensation for early risk.

Auction-Based Funding is a fundraising method where potential investments are bid on in an auction format, allowing startups to present their projects to a broad audience and secure funding based on competitive bids.

Audience Development are strategies and practices aimed at growing and engaging a startup`s target audience or user base, essential for platforms relying on network effects or content distribution.