Startup Glossary

A Non-Strategic Investor is an investor who provides capital without seeking to influence the company`s business strategy or operations.

A Non-Tangible Asset is an asset that cannot be touched or physically measured, such as intellectual property or brand reputation.

Non-Traditional Financing refers to financing methods outside of conventional bank loans, such as crowdfunding, peer-to-peer loans, or angel investments.

Non-Traditional Markets are markets that are not served by traditional businesses, often targeted by startups for new opportunities.

Non-Voting Shares are shares that grant the shareholder equity in a company but do not grant voting rights in shareholder meetings.

A Normal Course Issuer Bid (NCIB) is a type of stock buyback where a company purchases its own shares from the marketplace.

A Normal Course Offering is a standard, routine offering of securities to investors, typically without any special features or conditions.

Normal Goods are goods for which demand increases as consumer income rises, unlike inferior goods, for which demand decreases as consumer income rises.

Normalized Earnings are earnings adjusted for factors that are not considered normal or recurrent, providing a clearer picture of financial health.

Normalized Financial Statements are financial statements that have been adjusted for items considered abnormal, non-recurring, or unrelated to ongoing operations.

Normative Analysis is evaluation based on what ought to be or what is considered desirable, often in the context of ethical or policy implications for startups.

Normative Economics is a branch of economics that expresses value judgments about economic fairness or what the economy ought to be like.

A Not-for-Profit is an organization that focuses on a mission or purpose other than making a profit, often eligible for tax-exempt status.

A Notation Agreement is an agreement detailing the terms of a convertible note, including interest rate, maturity date, and conversion mechanics.

A Note is a financial security that generally represents a loan and obligation to pay back the amount borrowed.

The Note Conversion Cap is the maximum valuation at which a convertible note can convert into equity, protecting investors from dilution.

A Note Payable is a written promise to pay a specified amount of money, at a certain time, to the holder of the note.

A Noteholder is an individual or entity that owns a note, a financial instrument signifying a debt or obligation.

A Notice of Conversion is a notice from the holder of a convertible note or security to the issuer, indicating the intent to convert the note into equity.

A Notice of Default is a formal notification issued to a borrower indicating a failure to meet loan obligations, typically regarding a payment default.