Startup Glossary

Capped Rate is an interest rate that has a maximum limit on the rate that can be charged, regardless of market fluctuations.

C Corporation is a legal structure for a corporation in which the owners, or shareholders, are taxed separately from the entity.

Cap Table, short for capitalization table, is a spreadsheet or table that shows the equity capitalization for a company.

Capital Allocation refers to the process of distributing financial resources among different departments, projects, or investments to maximize profitability and growth.

Capital Efficiency is the measure of how effectively a company uses its capital to generate revenue.

Capital Gains are the profits from the sale of an asset — shares of stock, a piece of land, a business — and are generally considered taxable income.

Capital Requirement is the amount of capital a bank or financial institution must hold as required by its financial regulator. For startups, it refers to the minimum amount of capital needed to start and run the business efficiently.

Capital Structure is the composition of a company`s liabilities and equity, detailing how it finances its overall operations and growth through different sources of funds.

Capital Under Management refers to the total amount of capital or assets that a management team is responsible for overseeing.

Capped Notes are a form of convertible note used in financing that has a maximum valuation at which the notes will convert into equity.

Cash Burn Rate is the rate at which a startup expends its cash reserves before generating positive cash flow from operations.

Cash Flow Forecast is an estimation of the money expected to flow in and out of a business over a certain period, helping startups plan for future financial positions.

Cash Flow Positive indicates that a company`s cash inflows exceed its cash outflows.

Cash Flow Statement is a financial statement that shows how changes in balance sheet accounts and income affect cash and cash equivalents, breaking the analysis down to operating, investing, and financing activities.

Catalyst Funding refers to an initial investment meant to support and accelerate a startup`s growth until it can achieve self-sustainability or secure further funding.

Certification of Incorporation is a legal document related to the formation of a corporation or company. It is a license to form a corporation issued by the state government.

Chapter 11 refers to a chapter of the U.S. Bankruptcy Code that involves the reorganization of a debtor`s business affairs and assets.

Chapter 7, a part of the U.S. Bankruptcy Code, deals with asset liquidation of a debtor company to repay creditors.

Charge-Off is the declaration by a creditor that an amount of debt is unlikely to be collected, indicating that it is considered "bad debt" and written off the books.

Chief Financial Officer (CFO) is a senior executive responsible for managing the financial actions of a company, including tracking cash flow and financial planning.