Startup Glossary

A Portfolio Strategy is an investment strategy used by a company or investors to maximize the returns of an investment portfolio based on individual risk tolerance and goals.

Positioning is the process of establishing the image or identity of a brand or product so that consumers perceive it in a certain way.

Positioning Analysis is the process of identifying how a brand or product is perceived in the market relative to its competitors, focusing on its unique value proposition.

A Positioning Statement is a brief description of a product and its target market, outlining how the product fills a particular market need or niche better than its competitors.

Post-Money Valuation is the valuation of a company immediately after an investment has been made, calculated by adding the amount of the investment to the pre-money valuation.

Pre-emption Rights give existing shareholders the right to buy additional shares before the company offers them to new investors, protecting against dilution of ownership.

A Pre-Incorporation Agreement outlines the proposed terms and conditions between parties intending to incorporate a company, detailing the business structure, initial investments, and roles.

Pre-Market Trading refers to trading activity in the stock market that occurs before the official market trading session begins, often indicating the day`s market trends.

Pre-Money Valuation is the valuation of a company prior to an investment or financing event, which determines how much of the company new investors will own following their investment.

Pre-Seed Funding is an early investment aimed to help startups conduct market research and develop their product before they are ready to raise seed funding.

A Preemptive Offer is an offer made to existing shareholders giving them the opportunity to buy additional shares before the company offers them to new potential investors.

A Preferential Allotment is a process by which shares are allotted to a select group of investors (often existing shareholders) at a predetermined price, usually at a discount to the market price.

A Preferred Creditor is a creditor receiving priority over other creditors in terms of the payment from a debtor, especially in bankruptcy proceedings.

A Preferred Return is a profit distribution mechanism whereby preferred investors receive returns on their investment before any other class of shareholders.

Preferred Stock represents equity shares that have preferential rights over common stock, including dividends and liquidation rights, often used in venture financing.

A Press Release is an official statement issued to newspapers giving information on a particular matter, used as a tool for startups to announce product launches, partnerships, or achievements.

A Price Round is a funding round where the investment is made at a specific valuation, setting the price per share for new investors.

A Pricing Model is the strategy or method used by a company to determine the best price for its products or services, considering factors like costs, demand, and competition.

A Pricing Strategy is the method a startup uses to set prices for its products or services, based on factors like cost, market demand, competition, and business objectives.

The Primary Market is the market where securities are created and sold for the first time without involving intermediaries, facilitating capital raising by companies and governments.