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.
A shareholder who has contractual rights to approve or block an acquisition or IPO, giving them veto power over exit decisions regardless of ownership percentage. Democracy in action, if democracy meant a small group could overrule the majority.
The practice of revaluing portfolio companies to reflect current fair market value rather than cost basis, theoretically providing accurate fund performance but practically involving educated guesses and wishful thinking. Quarterly existential crisis as an accounting process.
The handful of key performance indicators that actually determine business health versus the vanity metrics founders cite in pitch meetings. Revenue and retention versus social media followers and press mentions.
Making investment decisions at lightning speed with minimal diligence, named after Tiger Global's spray-and-pray approach during the 2020-2021 bubble. High velocity, low conviction, maximum FOMO.
A proactive sales approach where the company reaches out to potential customers rather than waiting for inbound interest. It's the difference between fishing with a net and hoping fish jump into your boat.
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.
A toxic funding structure where conversion price drops as stock price falls, creating a downward spiral that destroys equity value. The financial equivalent of quicksand—struggling only makes it worse.
The percentage of a company a VC aims to own to make an investment worthwhile relative to their fund size. It's why large funds often can't invest in your seed round—they need bigger slices.
The percentage discount early investors get when their notes convert to equity, rewarding them for investing before a priced round. It's the early bird special of startup investing, typically 15-25%.
Someone who attends board meetings but lacks voting rights, typically a junior investor or potential future investor. They're flies on the wall with NDAs and calendars full of meetings they can't influence.
The reduction in founders' ownership percentage that occurs each time the company raises money or issues new equity. It's the slow, inevitable erosion of ownership that founders signed up for when they took outside capital.
The process of slapping a number on something that probably doesn't have a real value. In venture capital, it's educated guessing dressed up as financial analysis—your startup is worth $100M because we feel like it is, and also because everyone else paid way too much for similar companies.
The sacred privilege granted to investors allowing them to maintain their ownership percentage in future funding rounds by ponying up more cash. It's like a VIP pass that lets you keep throwing money at a company before it becomes wildly successful or spectacularly flames out.
The privilege to attend board meetings without voting power, typically granted to smaller investors or advisors. All the tedious meetings with none of the actual authority—basically a corporate internship.
The adjective slapped on every product, service, and startup pitch deck to signal 'we're doing something allegedly new.' Something innovative is supposed to be groundbreaking and forward-thinking, though these days it often means 'we added AI to it.' If your company isn't innovative, you're basically admitting you're stuck in 2005 with a flip phone.
Preferred stock that must choose between taking its liquidation preference OR converting to common and sharing the remaining proceeds—can't do both. The slightly-less-greedy version of investor terms.
Moving to build or sell products at higher layers of technology infrastructure, typically where margins are better and you're further from commoditized infrastructure. The opposite of down-stack, and usually more profitable.
A venture fund that's technically alive but has stopped making new investments, usually because performance is so bad that raising a follow-on fund is impossible. It shambles along, managing existing investments until the limited partnership agreement expires.
A timeline of planned features that will be delivered late, if at all—your product team's creative fiction exercise. It exists primarily to give the sales team something to promise prospects that engineering will later disappoint.
When a startup 'grows up' from an accelerator program or moves from seed to institutional funding, like leaving college but with more awkward Demo Days. Implies you're now playing with the big kids.
The return of capital to limited partners when a fund exits an investment, either as cash or occasionally as stock, representing the magical moment when paper gains become real money. The VC equivalent of actually getting your lottery winnings instead of just holding a ticket.
A financing round at a higher valuation than previous rounds, signaling growth and traction to the market. The opposite of a down round and considerably better for everyone's mood, if not always their long-term prospects.
The extended period after initial startup excitement fades when growth stalls and reality sets in, but you're too committed to quit. It's the emotional valley between 'we're going to change the world' and 'maybe we should get real jobs.'