A guide to the terms and expressions used in online investing and equity crowdfunding.
A sharesAcqui-hireActuaryAlternative financeAngel networkAngel network managerAnnual reportArticles of associationAsset classB sharesBeneficial shareholder or ownerBoard observerBoard of directorsBootstrappingBurn rateBusiness incubatorBusiness model canvasBusiness planCap tableConvertible noteCrowdfundingDebtDebt-based crowdfundingDilutionDiversificationDividendsDonation-based crowdfundingDrag-along rightDue diligenceEntrepreneurial seizureEntrepreneurs reliefEquityExitExit strategyFinancial Conduct Authority (FCA)Financial forecastFully dilutedFundFundraisingGrowth stageHigh Net Worth Individual (HNWI)Illiquid assetIntellectual Property (IP)Internal rate of return (IRR)Investment memorandumJOBS ActKnow Your Client (KYC)Lead investorLean startupLift roundLiquidityManagement buy-in (MBI)Management buyout (MBO)Management teamMarket riskMarketing planNomineeOperational planOrdinary shareOverfundingPenny stockPlatformPortfolioPost-investmentPost-money valuationPre-emptionPre-money valuationPreference sharesPrimary marketPrivate EquityReturn on Investment (ROI)Reward-based crowdfundingRiskSecondary marketSeed capitalSeed stageSeries A fundingShare issueShare OptionShareholderShareholders' agreementSocially responsible investingSophisticated investorSubscription agreementTag-along rightsTerm sheetTrade saleValuationVenture CapitalVoting rightsWarrants