Startup Glossary

A Rights Offering is a way for companies to raise capital by giving existing shareholders the right to purchase additional shares at a discount, before offering them to the public.

Risk Allocation involves distributing the potential risks associated with a project or investment among different parties, often outlined in contracts or agreements.

Risk Appetite is the level of risk that an organization or individual is willing to accept in pursuit of its objectives, guiding decision-making in investments and strategic planning.

Risk Assessment is the process of identifying, analyzing, and responding to risk factors throughout the life of a project or business.

Risk Capital refers to funds invested in high-risk, high-reward projects, typically in the early stages of a startup`s development.

Risk Capital Allocation is the strategy of assigning and investing funds in high-risk, high-reward ventures, often a critical component of venture capital and startup investment portfolios.

Risk Capital Assessment evaluates the amount of money that can be risked on new ventures without jeopardizing a company`s financial health.

Risk Diversification involves spreading investments across various assets to reduce exposure to any single risk, enhancing the resilience of a startup`s financial portfolio.

Risk Management involves forecasting and evaluating financial risks together with the identification of procedures to avoid or minimize their impact.

Risk Mitigation involves strategies and actions taken to reduce and manage risks to a project or business, aiming to minimize the potential impact of threats.

A Risk Profile is an evaluation of an individual`s or organization`s willingness to take risks, as well as their financial ability to handle the consequences of those risks.

Rogue Spending refers to unauthorized or unplanned spending within an organization, often bypassing formal procurement processes.

ROI Analysis is the process of calculating the return on investment for a particular expenditure or project, helping stakeholders understand the potential benefits relative to costs.

A Roll-Up Strategy involves acquiring and merging multiple smaller companies in the same industry to consolidate market share, reduce competition, and achieve economies of scale.

A Rolling Budget is a financial plan that is continuously updated by adding a new period (month, quarter, etc.) as the current period concludes, ensuring constant financial planning foresight.

A Rolling Close is a fundraising strategy where a startup closes funding rounds in stages, allowing it to secure capital as it meets specific milestones.

A Rolling Forecast is a financial forecasting approach that updates predictions regularly, extending the forecast period as time progresses, to reflect the latest data.

A Rollout Strategy is the plan for gradually launching a new product or service to the market, detailing the phases, timelines, and marketing efforts to maximize impact and adoption.

A Rollover for Business Startups (ROBS) allows aspiring entrepreneurs to invest retirement funds into a new business without early withdrawal penalties or taxes.

Round Financing Dynamics refer to the changing conditions, expectations, and strategies that influence each round of startup financing, from seed stage to later rounds.