| Equity Loan |
Offer of an ownership position to induce
the loan or can be a note that has an option
to convert from debt to equity. |
| Financial Capital |
Represents obligations, and is liquidated
as money for trade, and owned by legal entities. |
| First Round Funding |
Typically funding that accomodates growth.
Company may have finished R&D. Funding is often
in the form of a convertible bond. |
| Human Capital |
Investment in skills and education. |
| Later Stage Funding |
Mature company where funds are needed to
support major expansion or new product development.
Company is profitable or breakeven. |
| Merger and Acquisition Funding |
The combination of two companies. If one
company survives, it is a merger. If both survive,
it is an acquisition. |
| Mezzanine Funding |
Company's progress makes positioning for
an Initial Public Offering viable. Venture funds
are used to support the IPO. |
| Natural Capital |
Inherent in ecologies and protected by communities
to support life, e.g. a river which provides
farms with water. |
| Second Round Funding |
Maturing company where a future leveraged
buyout, merger or acquisition and/or initial
public offering is a viable option. |
| Seed/Startup Funding |
Earliest stage of business, typically no
operating history. Investment is based on a
business plan, the management group backgrounds
along with the market and financial projections. |
Private Equity and Venture Capital Glossary
