Startup Glossary

A Primary Offering is the initial issuance of shares by a company to the public, leading to the collection of capital directly from investors.

The Principal refers to the original sum of money borrowed in a loan, or the amount of the investment that is not subject to interest.

Private Equity refers to investment funds, firms, or investors that directly invest in private companies, often resulting in significant ownership stakes.

Private Investment in Public Equity (PIPE) is a type of investment in which private investors buy shares of publicly traded stock at a discount to the current market price.

Private Label refers to products manufactured by one company for sale under another company`s brand, often seen in consumer goods.

The Private Market refers to the part of the financial market involving transactions of securities that are not publicly traded, often accessible only to qualified investors.

Product Innovation is the development and market introduction of a new, redesigned, or substantially improved good or service, differentiating a company from its competitors.

A Private Offering is a funding round where securities are sold not through a public offering, but rather through a private placement to a small number of chosen investors.

A Private Placement is the sale of securities to a relatively small number of select investors as a way of raising capital, without the need to register the securities with the SEC.

Private Syndication is a funding approach where a group of private investors pools resources to invest in a venture, often facilitated by a lead investor or investment firm.

Pro Forma is a method by which financial results are calculated based on certain projections or presumptions, often used in valuations and financial modeling.

Pro-Rata Rights give investors the right to participate in future funding rounds to maintain their percentage of ownership in the company.

Product Development is the complete process of bringing a new product to market, from ideation through design, development, and finally, launch.

Product Differentiation is the process of distinguishing a product or service from others in the market to make it more attractive to a particular target market.

The Product Lifecycle is the cycle through which every product goes through from introduction to withdrawal or eventual demise.

A Product Roadmap is a high-level visual summary that maps out the vision and direction of a product offering over time, communicating the why and what behind the product.

Product Scaling refers to the process of expanding a product`s capabilities or availability to meet an increasing demand in the market, often involving strategic planning and resource allocation.

Product Validation is the process of testing a product concept with potential users to ensure it meets market needs and has a viable demand before fully launching it.

Product Viability refers to the potential of a product to meet market needs effectively, sustainably, and profitably, often assessed through market research and early user feedback.

Product-Market Fit occurs when a product satisfies a strong market demand and is a key indicator of potential for startup success.