Startup Glossary

Subordinated Debt is a type of loan that ranks below other debts and loans in terms of claims on assets or earnings. It is repaid only after other debts have been settled in the event of a liquidation or bankruptcy.

A Subscription Agreement is a contract between a company and an investor that outlines the terms for purchasing shares in a private placement, including the investment amount, price per share, and other conditions.

The Subscription Model is a business strategy where customers pay a recurring fee, usually monthly or annually, for continuous access to a product or service. It provides a predictable revenue stream for companies.

A Success Fee is a fee paid to an advisor, broker, or investment banker upon the successful completion of a transaction, such as a funding round or acquisition, often calculated as a percentage of the deal value.

A Super Angel Investor is an affluent and influential angel investor with a significant track record of successful investments, often providing substantial early-stage capital and expertise to startups.

Supply Chain Financing refers to a set of solutions that optimize cash flow by allowing companies to lengthen their payment terms to suppliers while providing the option for their suppliers to get paid early.

Sustainability Metrics are measurements used to assess and report on a company`s environmental, social, and governance (ESG) performance, indicating its commitment to sustainable business practices.

Sweat Capital, similar to sweat equity, represents the non-monetary investment made by founders and early team members in the form of labor, effort, and dedication to the startup, contributing to its value.

Sweat Capital Commitment is an agreement wherein founders or team members agree to contribute their time, effort, and expertise to the startup in exchange for equity, recognizing the value of non-financial contributions.

Sweat Equity is equity awarded to founders, employees, or advisors in recognition of their contributions in the form of work, effort, and expertise, rather than monetary investment, to the startup`s development.

A Sweat Equity Agreement outlines the terms under which individuals will receive equity in exchange for their labor and contributions to the startup, detailing the amount of equity awarded and any vesting conditions.

A Sweat Loan is an agreement where repayment may involve providing services or labor in lieu of traditional financial repayment, often utilized in early-stage startups with limited cash resources.

A Syndicate is a group of investors, often led by a venture capital firm, that pools resources to invest in startups, spreading the risk and potentially increasing the investment`s impact.

A Syndicated Investment involves multiple investors collaborating to fund a startup, pooling their financial resources under the leadership of one or more lead investors, enabling larger funding rounds.

Syndication Rights pertain to the collective investment rights and agreements among a group of investors participating in a syndicate, outlining the terms of their collaboration and investment.

A Systematic Investment Plan allows individuals to invest a fixed amount regularly into a specific investment, facilitating disciplined saving and investment over time.

Systemic Risk is the risk that an event at the company level could trigger severe instability or collapse in an entire industry or economy, highlighting the interconnectedness of financial systems.