Startup Glossary

Trade Credit refers to an agreement between businesses to purchase goods or services on account, without immediate payment, offering startups a way to manage cash flow effectively.

A Trade Sale is the sale of a company`s shares or assets to another company or investor in the same industry, often pursued as an exit strategy by startups and investors.

Trade Secrets consist of confidential business information that provides an enterprise with a competitive edge, such as formulas, practices, processes, designs, instruments, patterns, or compilations of information.

The Trailing Twelve Months (TTM) is a period of time used for financial reporting that looks at the past 12 consecutive months, important for startups in providing a recent performance snapshot to investors.

A Tranche is a portion of investment delivered to a startup at different stages, based on meeting previously agreed milestones, facilitating phased financing aligned with progress and achievements.

Transaction Costs refer to expenses incurred during the process of buying or selling securities or other financial instruments, which startups must consider in their funding strategies.

Transitional Capital is capital provided to companies to bridge a temporary financial gap, which can be crucial for startups during pivot points or until achieving the next milestone.

Transitional Funding is short-term funding used to bridge a financial gap between rounds of financing or until a startup becomes cash flow positive.

Transparency is the practice of openly and honestly disclosing financial, operational, and strategic information to stakeholders, crucial for startups in building trust with investors and customers.

Treasury Management involves the management of a company`s liquidity, ensuring it has enough cash to meet its obligations while optimizing interest and currency exposure.

Treasury Stock consists of shares that were once part of the float and outstanding shares but were subsequently repurchased by the company.

A Trigger Event is a specific condition or event that activates a clause in a financial agreement, such as the achievement of a milestone or a change in leadership, which can have implications for startup financing.

The Triple Bottom Line is a sustainability framework that evaluates a company`s performance based on three Ps: profit, people, and the planet, increasingly important for startups seeking socially responsible investment.

A Trust is a fiduciary relationship in which one party, known as a trustor, gives another party, the trustee, the right to hold title to property or assets for the benefit of a third party, the beneficiary.

Turnaround Time is the time taken for a startup to complete a cycle of operations or to execute a specific task, often related to efficiency.

A Turnkey Project is a project that is designed, supplied, built, or installed fully complete and ready to operate, often appealing for startups looking to outsource parts of their operations or infrastructure.

A Turnkey Solution is a type of solution that is readily available to implement into a current business process or package, designed to fulfill a certain process such as accounting, or CRM processes.

A Two-Sided Market is a market platform where two distinct user groups provide each other with network benefits, crucial for businesses like marketplaces or social networks.

Two-step Verification is a security process in which the user provides two different authentication factors to verify themselves, important for startups in protecting sensitive financial information.