Startup Glossary

Donation-Based Crowdfunding is a way to raise funds for a project or venture by asking a large number of people to donate money, typically via an online platform, without offering them a return on investment.

Down Round is a financing event where investors purchase stock or securities from a company at a lower valuation than the preceding round, indicating a decrease in the company’s valuation.

Drip Campaign is a method of sending marketing information to prospects continuously over longer periods of time, typically via email, to build relationships and awareness.

Drip Funding is the provision of funding in small amounts over time, rather than as a single lump sum, often used to maintain tight control over cash flow.

Drop Shipping is a retail fulfillment method where a store doesn`t keep the products it sells in stock. Instead, when a store sells a product, it purchases the item from a third party and has it shipped directly to the customer.

Due Diligence is an investigation or audit of a potential investment or product to confirm all facts, such as reviewing financial records, before entering into an agreement.

Dynamic Cap Table is an adjustable model that reflects changes in a company`s ownership structure, including equity dilution, new funding rounds, and employee stock option pool changes.

Dynamic Equity is an equity allocation model that allows for the adjustment of ownership percentages based on contributions or other agreed-upon metrics over time.

Dynamic Pricing is a pricing strategy in which the price of a product or service is flexible, often varying based on market demand, competition, or other factors.

Dynamic Startup Ecosystem describes a vibrant community of startup entities, venture capitalists, angel investors, and support services fostering innovation and growth.