Startup Fundraising Glossary

Navigate the world of startup financing with confidence

Explore a glossary of essential terms in startups, startup fundraising, bootstrapping and entrepreneurship. Decode the terminology and jargon with ease.

  • Questionnaire Survey

    A Questionnaire Survey is a research method used by startups to collect data and insights from a targeted audience about their preferences, behaviors, or perceptions, aiding in market analysis.

  • Queue Management

    Queue Management is the process of managing waiting lines or queues effectively to improve customer satisfaction and operational efficiency, relevant in customer-facing startups.

  • Quick Assets

    Quick Assets are assets that can be quickly converted into cash without losing value, including cash, marketable securities, and receivables, used in calculating liquidity ratios.

  • Quick Ratio

    The Quick Ratio, also known as the acid-test ratio, is a measure of a company`s ability to meet its short-term obligations with its most liquid assets, providing insight into its financial health.

  • Quick Win

    A Quick Win refers to a strategy or action that produces significant results with relatively minimal effort or investment, often pursued to gain momentum or demonstrate early success in a startup.

  • Quid Pro Quo

    Quid Pro Quo refers to a mutual agreement where something is given in exchange for something else, often used in negotiations to denote a fair exchange.

  • Quid Pro Quo Investment

    A Quid Pro Quo Investment refers to an investment deal where something is given in return for something else, often involving equity in exchange for capital or strategic support.

  • Quiet Period

    The Quiet Period refers to the time frame in which a company that is going public is restricted from making any public announcements about its financial condition to avoid influencing market conditions.

  • Quintile

    A Quintile is a statistical value dividing a data set into five equal parts, often used in economic and financial analysis to assess income distribution or performance levels.

  • Quorum

    A Quorum is the minimum number of members of a deliberative body necessary to conduct the business of that group, ensuring that decisions are made with broad support.

  • Quorum Requirements

    Quorum Requirements define the minimum number of members that must be present at a meeting or vote for the proceedings to be valid and decisions to be legally binding.

  • Quorum Voting

    Quorum Voting is the minimum number of votes required for a decision or election to be considered valid in a meeting, ensuring decisions are made with sufficient representation.

  • Quota

    A Quota is a fixed share or a target that a company or individual aims to achieve within a specific timeframe, often used in sales and production planning.

  • Quota Sampling

    Quota Sampling is a sampling method where the sample is chosen to reflect the characteristics of the whole population, based on specific quotas for demographic groups.

  • Quota Share

    A Quota Share is a type of reinsurance agreement in which the insurer and reinsurer share premiums and losses in proportion to a set percentage, distributing risk.

  • Quotation Analysis

    Quotation Analysis involves evaluating and comparing price quotes from different suppliers or service providers to determine the best value offer for a startup`s procurement needs.

  • Quotation System

    A Quotation System is an electronic system used by securities dealers to provide price quotations for stocks, bonds, and other financial instruments to the public.

  • Quote

    A Quote is the latest price at which a stock, commodity, or other financial instrument has traded, offering investors and traders information on market conditions.

  • Quoted Company

    A Quoted Company is a company whose shares are listed and traded on a stock exchange, allowing for public investment and visibility.

  • Quoted Price

    A Quoted Price is the current price at which an asset or service is offered for sale or purchase, providing a basis for buyers and sellers to make decisions.

  • R&D Expenditure

    R&D Expenditure refers to the amount of money a company invests in its research and development activities, aiming to innovate and develop new products or services.

  • R&D Innovation Cycle

    The R&D Innovation Cycle describes the iterative process of research, development, testing, and refinement in creating new products or technologies, crucial for long-term competitive advantage.

  • R&D Tax Credits

    R&D Tax Credits are government incentives designed to reward companies for investing in research and development, offering tax savings that reduce the cost of innovation.

  • Ramp Up

    Ramp Up refers to the phase where a startup increases production, operational capacity, or marketing efforts to meet anticipated demand.

  • Rapid Market Penetration

    Rapid Market Penetration is a growth strategy aiming for a swift increase in sales and market share by aggressively promoting and distributing a product or service.

  • Rapid Prototyping

    Rapid Prototyping is a method used to quickly fabricate a scale model of a physical part or assembly using three-dimensional computer-aided design (CAD), useful in product development stages.

  • Rapid Scaling

    Rapid Scaling refers to the accelerated growth of a startup, focusing on quickly expanding its market presence, customer base, and revenue, often following successful product-market fit.

  • Ratchet

    A Ratchet is a provision in financing agreements that protects investors by adjusting the price of previously sold shares, typically in case of a down round.

  • Ratchet Effect

    The Ratchet Effect refers to a situation in financial agreements where certain provisions allow for adjustments in share prices or valuations under specific conditions, often protecting investors.

  • Real Options Valuation

    Real Options Valuation is a method of valuing potential investments using the concept of options, which considers the flexibility and choices available to manage uncertainty and capitalize on opportunities.

  • Recapitalization

    Recapitalization is the process of restructuring a company`s debt and equity mixture, often to stabilize a company`s capital structure.

  • Receivables Financing

    Receivables Financing is a type of financing where a company uses its accounts receivable as collateral to secure a loan or advance, improving cash flow.

  • Recurring Revenue

    Recurring Revenue is the portion of a company`s revenue that is expected to continue in the future, providing a more predictable income stream often associated with subscription-based models.

  • Red Herring

    A Red Herring is a preliminary prospectus filed by a company with the SEC, usually in connection with its initial public offering (IPO), containing information about the business and its finances.

  • Redeemable Shares

    Redeemable Shares are shares that can be bought back by the issuing company at a predetermined price, providing a way to return capital to investors.

  • Redemption Rights

    Redemption Rights are contractual agreements giving investors the right to compel a company to repurchase their shares at a predetermined price after a certain period.

  • Reference Check

    A Reference Check involves contacting previous associates, employers, or partners to verify a potential investment or collaboration`s integrity and potential.

  • Regulation A (Reg A)

    Regulation A (Reg A) is an exemption from registration for public offerings, allowing companies to raise money from the public without undergoing a full SEC registration.

  • Regulation Crowdfunding (Reg CF)

    Regulation Crowdfunding (Reg CF) allows startups and small businesses to raise funds from the general public through SEC-regulated online platforms, subject to certain rules and limitations.

  • Regulation D (Reg D)

    Regulation D (Reg D) is a SEC regulation governing private placement exemptions, allowing companies to raise capital without the need to register securities with the SEC.

  • Regulatory Compliance

    Regulatory Compliance refers to the process of ensuring that a company adheres to relevant laws, regulations, guidelines, and specifications relevant to its business operations.

  • Regulatory Risk

    Regulatory Risk is the potential for laws, regulations, or government policies to change and negatively affect a startup`s operations, profitability, or business model.

  • Regulatory Sandbox

    A Regulatory Sandbox is a framework set up by regulators that allows startups to test innovative products, services, or business models in a controlled environment with regulatory relaxations.

  • Reinvestment Rate

    The Reinvestment Rate is the percentage of earnings or profits that a company chooses to reinvest in its operations instead of distributing as dividends, indicating growth priorities.

  • Related-Party Transactions

    Related-Party Transactions are business deals or arrangements between two parties who are joined by a special relationship, such as family ties or shared corporate control.

  • Reputation Capital

    Reputation Capital is the value of a company`s brand name and the trust it has built with its customers, investors, and the public, which can influence its success.

  • Research and Development (R&D)

    Research and Development (R&D) involves activities that companies undertake to innovate and introduce new products or services.

  • Reserve Price

    The Reserve Price is the minimum price a seller is willing to accept for an asset in an auction, ensuring the asset is not sold below a certain value.

  • Residual Value

    Residual Value is the estimated value of an asset at the end of its useful life, important in calculating depreciation and lease payments.

  • Resilience Planning

    Resilience Planning involves creating strategies to help a startup withstand and recover from unforeseen setbacks, ensuring business continuity and operational integrity.