fundraising

Definition

The noble art of convincing individuals, corporations, and foundations to part with their money for your cause, institution, or startup dream. In education, it's what keeps universities building new buildings with donors' names on them. In nonprofits and startups, it's a full-time job disguised as networking events and carefully crafted pitch decks.

Example Usage

The dean spent more time fundraising from wealthy alumni than actually running the business school, but someone had to pay for that new innovation center.

Source: Common nonprofit and business terminology

Related Terms

Beginner

proactive investor

A VC who claims they'll actively help your company through connections, advice, and support, as opposed to just wiring money. Reality: they'll make three intros, attend two board meetings, then ghost you unless you're a unicorn.

🚀 Startup / VC

Intermediate

change of control

Any transaction that transfers majority ownership or control of a company, typically triggering various contractual provisions like vesting acceleration, payment obligations, or approval rights. The legal definition of when your startup stops being yours.

🚀 Startup / VC

Intermediate

flat round

A financing round raised at the same valuation as the previous round, suggesting a company has neither advanced nor declined—essentially treading water while burning cash. More diplomatically acceptable than a down round but almost as concerning to investors.

🚀 Startup / VC

Advanced

trough of sorrow

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.'

🚀 Startup / VC

Intermediate

reserve allocation

Capital set aside by a VC fund to support existing portfolio companies in future rounds. The difference between investing in 20 companies and actually having money to help the 2-3 that work.

🚀 Startup / VC

Advanced

pay-to-play provision

A punitive clause forcing existing investors to participate in future rounds or lose their special privileges—the venture capital equivalent of 'put up or shut up.' Popular after market downturns when companies need to separate real believers from fair-weather friends.

🚀 Startup / VC

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