Startup Glossary

R&D Expenditure refers to the amount of money a company invests in its research and development activities, aiming to innovate and develop new products or services.

The R&D Innovation Cycle describes the iterative process of research, development, testing, and refinement in creating new products or technologies, crucial for long-term competitive advantage.

R&D Tax Credits are government incentives designed to reward companies for investing in research and development, offering tax savings that reduce the cost of innovation.

Ramp Up refers to the phase where a startup increases production, operational capacity, or marketing efforts to meet anticipated demand.

Rapid Market Penetration is a growth strategy aiming for a swift increase in sales and market share by aggressively promoting and distributing a product or service.

Rapid Prototyping is a method used to quickly fabricate a scale model of a physical part or assembly using three-dimensional computer-aided design (CAD), useful in product development stages.

Rapid Scaling refers to the accelerated growth of a startup, focusing on quickly expanding its market presence, customer base, and revenue, often following successful product-market fit.

A Ratchet is a provision in financing agreements that protects investors by adjusting the price of previously sold shares, typically in case of a down round.

The Ratchet Effect refers to a situation in financial agreements where certain provisions allow for adjustments in share prices or valuations under specific conditions, often protecting investors.

Real Options Valuation is a method of valuing potential investments using the concept of options, which considers the flexibility and choices available to manage uncertainty and capitalize on opportunities.

Recapitalization is the process of restructuring a company`s debt and equity mixture, often to stabilize a company`s capital structure.

Receivables Financing is a type of financing where a company uses its accounts receivable as collateral to secure a loan or advance, improving cash flow.

Recurring Revenue is the portion of a company`s revenue that is expected to continue in the future, providing a more predictable income stream often associated with subscription-based models.

A Red Herring is a preliminary prospectus filed by a company with the SEC, usually in connection with its initial public offering (IPO), containing information about the business and its finances.

Redeemable Shares are shares that can be bought back by the issuing company at a predetermined price, providing a way to return capital to investors.

Redemption Rights are contractual agreements giving investors the right to compel a company to repurchase their shares at a predetermined price after a certain period.

A Reference Check involves contacting previous associates, employers, or partners to verify a potential investment or collaboration`s integrity and potential.

Regulation A (Reg A) is an exemption from registration for public offerings, allowing companies to raise money from the public without undergoing a full SEC registration.

Regulation Crowdfunding (Reg CF) allows startups and small businesses to raise funds from the general public through SEC-regulated online platforms, subject to certain rules and limitations.

Regulation D (Reg D) is a SEC regulation governing private placement exemptions, allowing companies to raise capital without the need to register securities with the SEC.