Startup Glossary

Executive Summary is a short document or section of a document produced for business purposes, summarizing a longer report or proposal in a way that readers can rapidly become acquainted with the material without having to read it all.

Exit Fee is a charge that may be incurred by an investor for withdrawing funds from an investment before a specified period.

Exit Strategy is a planned approach to exiting a business venture, typically aimed at realizing a return on investment.

Exit Valuation is the valuation at which a company is sold or exits, providing a return to investors and shareholders.

Expansion Capital is funding provided for the growth and expansion of a company, which may include entering new markets, increasing production capacity, or developing new products.

Expansion Stage refers to a phase in a startup`s growth focused on scaling the business, typically after proving product-market fit.

Expedited Due Diligence is a swift, thorough examination and appraisal of a business or its assets before signing a contract, often used in time-sensitive business transactions.

Expense Forecasting is the process of estimating the costs a startup will incur over a specific period, crucial for budgeting and financial planning.

Exponential Growth describes growth that occurs at a rapidly increasing rate, often used in the context of startups experiencing rapid increases in revenue or customer base.

External Capital refers to funds raised from outside investors, including venture capital, angel investors, or crowdfunding, as opposed to internal financing through revenue or founder contributions.

External financing is the process of raising capital from outside sources, such as loans, equity investments, or bonds, to fund business operations and growth.

External Funding refers to capital raised from sources outside of the company, including venture capital, angel investors, or crowdfunding.

External Growth is expansion achieved by a startup or company through acquiring or merging with other companies rather than organic growth.

External Validation is confirmation from third-party sources that a startup’s business model, product, or service is viable and has market potential.