Get your head around these key terms to improve your knowledge about startups, venture capital, and VC scouting.
An investment memo (also known as a deal memo or deal memorandum)is a crisp and clear way to layout and pitch your company to potential investors. Memos are a clear and concise document to lay out strategic vision, rationale, and expectations for an investment, project, product or strategy.
Read more »A venture capital firm is usually a private partnership that are funded by wealthy individuals and organisations. Larger investment banks, pension funds, and even university endowments also invest in VC firms. In some cases, companies themselves provide capital to VC firms.
Read more »An angel investor is considered to be high-net-worth individuals who invests their own money (i.e., funds from their personal savings or from capital that they have earned from the sale of other business interests) in startups and small, growing firms.
Read more »The investment allocation is the portion of the total round that is set aside for a specific investor. This is usually communicated in dollars but can be expressed as a percentage of the total round. For example, 100,000 or 14% of the round.
Read more »A startup accelerator program provides startups with financial investment, education, mentorship and networking that can help transform their early-stage companies into a successful business venture.
Read more »An accredited investor is a person or group with enough wealth to be able to make certain types of investment.
Read more »A person, usually loosely associated with a venture capital firm, who helps the firm source new deals, find new limited partners, evaluate incoming startups, or help startups in the portfolio.
Read more »In startups and venture capital, a scout is a person who helps investors source new deals.
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