Startup Glossary

The Share Option Pool is a portion of a startup`s equity reserved for future issuance to employees, advisors, and consultants as part of their compensation. This pool is designed to align the interests of the team with the growth of the company.

The Share Registry is an official record of individuals and entities that own shares in a company. It tracks ownership changes, share issuances, and transfers, serving as a crucial document for corporate governance.

Share Vesting is the gradual granting of equity to employees over time, ensuring they remain committed to the company for a certain period. This mechanism helps startups retain talent by tying their rewards to the company`s long-term success.

A Shareholder Rights Agreement outlines the rights and protections afforded to shareholders, including voting rights, dividend rights, and protections against dilution. This agreement aims to clarify and safeguard shareholders` interests.

A Shareholder Rights Plan, also known as a "poison pill," is a defense strategy against hostile takeovers. It allows existing shareholders to purchase additional shares at a discount if an acquirer surpasses a certain ownership threshold, diluting the acquirer`s stake.

A Shareholders` Agreement is a contract among a company`s shareholders detailing the operation of the company and defining the shareholders` rights, duties, and obligations. It serves as a framework for managing shareholder relations and decision-making.

A Silent Accelerator offers support, resources, and possibly funding to startups without the publicity of demo days or extensive public engagement. It focuses on growth and development with a lower profile approach.

A Silent Partner invests capital in a business but does not take part in daily management or decision-making processes. They provide financial support while remaining in the background of the company`s operational activities.

A Single Purpose Vehicle (SPV) is a separate legal entity created by a parent company to isolate financial risk, particularly used in securing investments or loans for specific projects. It helps manage risk and segregate assets from the main company.

Social Capital encompasses the networks, relationships, and reputation that a startup leverages to gain a competitive edge, secure funding, or establish strategic partnerships. It is a valuable, intangible asset in the business world.

Social Entrepreneurship involves creating businesses and organizations with the primary goal of addressing social, cultural, or environmental challenges. These ventures seek to drive social change through innovative solutions and sustainable business models.

Social Venture Capital is a subset of venture capital investing that aims to achieve both financial returns and positive social or environmental impacts. It supports startups that address societal challenges while seeking profitability.

A Soft Commitment is an initial, non-binding expression of interest from an investor to fund a startup, subject to further evaluation, due diligence, and final agreement. It indicates potential financial support without firm obligations.

Soft Equity refers to equity or equity-like rewards granted for non-monetary contributions to a startup, such as expertise, time, or network access. It`s akin to sweat equity but may involve different valuation and compensation mechanisms.

Soft Funding consists of grants, subsidies, or other non-repayable financial support provided to startups, often by governmental or non-profit organizations. This type of funding supports early-stage development without financial repayment obligations.

A Soft Launch is the release of a new product or service to a limited audience or market segment before a wider, public launch. It allows startups to gather feedback, adjust offerings, and refine marketing strategies in a controlled environment.

A Soft Loan offers favorable terms to the borrower, such as lower interest rates or longer repayment periods, often subsidized by governments or international organizations to support development projects or startups.

Solvency refers to a startup`s ability to meet its long-term financial obligations, ensuring its capacity to continue operations, invest in growth, and withstand financial challenges over time.

A Special Purpose Acquisition Company (SPAC) is a publicly-traded company created specifically to acquire or merge with an existing company, facilitating that company`s transition to a public entity without a traditional IPO.

A Sponsor is an individual, corporation, or organization that provides financial support, resources, or expertise to a startup, often in exchange for equity, promotional opportunities, or strategic benefits.