Startup Glossary

A Round of Funding is a stage in the capital-raising process where a startup receives investments in exchange for equity or debt, such as seed, Series A, B, C, etc.

A Round Table refers to a meeting where investors, founders, and stakeholders discuss strategies, progress, and future plans in a non-hierarchical setup.

Rounds of Financing refers to the sequential stages through which a startup goes to raise capital, including seed, Series A, B, C, etc., each with different investor expectations and company valuations.

Royalty Financing is a method of raising funds where investors provide capital in exchange for a percentage of future revenues.

A Royalty Stream refers to the continuous flow of payments received from licensing agreements or royalties, providing a source of revenue from intellectual property rights.

A Rubber Check colloquially refers to a check that cannot be processed due to insufficient funds, highlighting financial instability or mismanagement.

Run Rate extrapolates financial results into future periods. For startups, it indicates the expected financial performance based on current metrics.

Run Rate Earnings extrapolate current financial performance to predict a full year`s earnings, assuming no changes in the revenue or cost structure.

Runway refers to the amount of time a startup can continue operating until it needs to secure additional funding, calculated based on current burn rate and existing financial reserves.

Runway Analysis assesses the amount of time a startup can continue to operate at its current burn rate before it needs to generate positive cash flow or secure additional funding.

Runway Extension refers to actions taken by a startup to lengthen the amount of time before additional funding is needed, often through cost-cutting or seeking additional investments.