Disrupting disruption with disruptive disruptions since 2010.
A strategy where investors make many small bets, then heavily support only the winners in subsequent rounds. The venture capital version of throwing spaghetti at the wall, then only cooking the pieces that stuck.
The information conveyed to the market by investor actions, such as who leads a round or whether insiders participate in follow-ons. In startup land, subtext is text.
An investment strategy of making many small bets across countless startups, hoping a few will hit big enough to compensate for the inevitable carnage. The venture capital equivalent of buying lottery tickets in bulk.
A system where VCs give small pools of capital to well-connected individuals to make investments on the firm's behalf. A brilliant way to outsource deal flow while paying in equity instead of salary.
Having personal capital at risk in an investment or venture, theoretically aligning interests between founders and investors. It's the 'put your money where your mouth is' principle, except everyone's mouth is usually writing checks their bank account can't cash.
Serviceable Addressable Market—the portion of TAM you can realistically reach with your business model and resources; basically TAM divided by reality.
Selling existing shares to other investors rather than the company issuing new shares, allowing early shareholders to get liquid without diluting anyone. The financial equivalent of sneaking out the back door.
A marketplace where shareholders can sell their existing equity to other investors, providing liquidity before an IPO or acquisition. It's the emergency exit when waiting for an actual exit feels like waiting for Godot.
A fledgling company designed for rapid growth and scale, typically fueled by venture capital, caffeine, and the unwavering belief that this time will be different. These entrepreneurial ventures aim to disrupt industries, change the world, and achieve unicorn status—though most will pivot three times and run out of runway first. It's where innovation meets delusion in the most optimistic way possible.
The right to invest more than your proportional share in a subsequent round, allowing early investors to increase their ownership. Pro rata's aggressive older sibling who always wants more.
Simple Agreement for Future Tokens—a legal instrument for investing in future cryptocurrency tokens, for when you want equity but make it crypto.
A Stripe-era instrument designed to be even simpler than convertible notes—basically a promise to give equity someday, maybe.
The second institutional round where your company proves Series A wasn't a fluke—investors pony up $15M-$50M hoping you've figured out unit economics.
The portion of TAM you can actually reach with your sales and marketing strategy—much smaller than TAM but still wildly optimistic.
An independent appraisal of your private company's value for tax purposes—made by third parties specifically so the IRS can't argue your strike price was fraudulently low.
The price per share at which employees can exercise their stock options. Set artificially low so they can actually afford to buy their equity on the off chance it's worth something.
The realistic revenue you can capture in the next 5-10 years—the number that makes your board members slightly less nervous than TAM.
Sequential funding rounds labeled alphabetically, each supposedly representing the company's progression from barely-viable to 'we probably need more money anyway.'
Sequential rounds of venture funding with progressively larger checks and increasingly skeptical investors asking harder questions.
Cloud-based software customers pay for monthly/yearly as subscriptions instead of licensing, the dominant startup business model.
Serviceable Obtainable Market—what you can realistically capture in the first 3-5 years. It's the intersection of TAM, SAM, and aggressive optimism.
The initial capital injection used to plant your business idea and hope it doesn't get eaten by birds before it sprouts.
Groups of angel investors or VCs pooling resources to make a larger investment than they could individually, because apparently teamwork makes the dream work.
A wooden stick driven into the ground to mark territory or prop things up, or in the business world, the percentage ownership or financial commitment you have in a deal. High stakes mean high risk and high reward; low stakes mean you're testing the waters.