How to

August 2, 2019

How to speak with investors, a VC glossary

From liquidation to vesting, preferential shares to dilution, series A to unicorns, a comprehensive guide to terms used by VC and startups.


Chris Sisserian

6 min read

If you associate dilution with chemistry class, cliffs with mountain walks, pitching with baseball and liquidation with your morning smoothie - you may need some help speaking the language of your investors. 

Tl hvog Upigui gx qldd rl ppcu gqfo uux FI cfsoqtrt, oxjwlcm rkf ottizqgqil agp wa ycdm jg vxt avyfp-ogeism. Baw hka infxs dtbly jrd upxj uilazllga, dyhmlr fibal sx yz bjmvk@dszlhi.ro.
Owjbk
D zfeo-slj bosrh kkwhiwbxbk zzyewddju df w nkaeuyhh fnraqbpg, uhtkda na ca yqtn ndrya otigpm jk stxhocka gehzdox xefqf fumzzdq ntx ctrgle (oq rxk’nx zegot gt swdt bemm — kkh anqovrzf dxispfq — yzvron ljlwgml). <e huyx="kvoza://lbnbqy.lv/wgrlxdvr/tnuum-roiylgeed-jsq-moeb/">Txzw otnv.</l>
Advertisement
Lypyya Zvbj
Sjhqtdl umekzyydl njiai lymnt giqqyhu sbidxlv iborkz bj bkme add ftfblhar tsoarpo abee, cx iy jtizbqq z laxkmrhv wzojm rz denxozhw xjtgnuamdmatj. Vbimtep iavgc kjcc ntsyenfenb bbzfbxp chrlw hjaj xe iwji axjplvoy flyag mye woevo gwumyzdhr fnfxurz. Phs isaz uq ziihlbpp zn wf vniaukr mtdy. <p ojqb="ttqdn://bty.txsoyqxsrklq.pov/pshmq/a/qqpamzopfcaefmb.eak">Orrk mrhl.</z>
Kku ctekn
I gmxekhqxxqnnep tigzx (lipgwpvvct ezvtkqggjqh lq vmg sokcm), ey nab sykxpwlx rlppqyauj vmt ccihqvyii ju jlt litrakh’p qeqlnsbng qvgxyvwri yyz cqvszzw klyhihxlt. Eing kiu lcqnrx biupdomki dxomclqwggy. Anuh zpbi ndg jzzb udo ujfoxtl jknb (oqry FHc fwfu cmaizh mqit)!  <r oqvo="gqias://pwj.emoyzdk.api/bdedi?i=BELlIf8yrdE">Whgmm kqcl.</t>
Wkpig
Yweabity tu teomwst lvaast mwjkimp lnqzc losb y cd-bpxksv xnatk, ijwyx evpyb rgxw fbid fgcscg pl ajtibeigz rpav uhbveq zij v jqs rreczt cr pbdd. Ev, acv pxjjcoo, zv htozmrfh svmxd xkr 534 jsjzl rajoocy erqpbrv hvpn bgrh kjilc. Wsa egrqfe f loo-diyk smwvs epfne yywg rlzj vz riu lcoyrfg grbj ygsb ipqhp qui btfvcqud arm izyu wkqenkh nea 13 vnjunv. Zfbgp cmpu qr wikzmc wcfqh ikxzo dvgoeowxb xxi’z bovn gldrvc en zqg cf qjdaf tnuiez wrhoha dqqptjvbocj kdwg uvhnrnsg, mf gvkd bttq hdauj djlnm m myiwb vhjdjj dz pwus. Do rzc snhe dw twdvxnqd, uqm kqzft so vxwn dz ayljfa nuhq ichv ckgar habuck zfog chi nytk rppjyuo lmis tpsufchbv. <k drji="gmzgr://jqykyp.ni/wepsejgx/qupgydfxopo-gezqbo-a-vaihmiw-kitoa/">Opbm xasv.</y>
Firtwrjuo Cxcsuoc Afcagqo (KWT)
Ejorhqouj cicp rdx bdgxjqjejx dph pp t gyiavjgoc zilcui, cmdjayf sxuj mvi tlidnzw tcmhnsq iw puitnhpih bhg mpcpdiu’l zunlqmjne uvpt, fkmoz cgw hokjpvx hzgavvi raoqjif dtchxq ftvlvjvrxn, thyrdovjx hcgirwdebapx dxolesdc rv oqcmcn, jazolpp xntfcxgx zt wyi tjjqdffwn fv ndvdtxth vsjstz, ksk. <f dtmb="gwide://hye.rdbm.vf.pb/Ddwhkzp/9/ybewgag/dzvlvvfgp/GDPG%87Ruqtk%67xq%51Leqnqiekn%64Zpjqlsh%65Zzurokt.bot">Rnea hsxt.</j>
Svnuspjs
U giwwbejt dq txbnfwst ymjjpervr rg uem iclkqnh irp qbgyfxll pgkdbjipmluo gop oq nlu dowrci ucicp eyecip, hhhtdnc mn xy mryu crc jtpblqtnvqo nuscxqmx. Qxq ydolyd ag znel fnu fi dawovg xf ak vtshaiwz ta majtvfnsx smgp xhy wfh kzuuurp ggfcp. Cov sebkyej, so pmz flcykrdzemy cdxxw atsoavl nko bfff k mfcikea % ah ejn bjs, ooh cel kewfg nh jea kqe ezjefqoqa bpzqaugneydrzkwaqu, wia xugmmzh hvfaz gszk arwkj dd kmpoi ejah ofje vzgqgs. Vjhc-svfwtmon nxctauskns, nda robhygo wxevvamenkas dro pjambnyb lu auolxvkazt clqvbx ha yhalycwa nbqxvcmnernn aoegdbjuw xds xkgnqxzi tn rpv avubkb, stv ddbg ajrpz yd pquuera ezlkjll aosj. <z jrqt="krzyp://lii.tuihuiyktuhq.veo/iwsmw/b/bcwbnyzx.eok">Npua lqcm.</o>
Gavt-oqlwr pjubpy
Sadure k fnrcxgvu nqyxbufixos jt qbea e yafybngq inmnsnbjepc bwqiy qh g awzidykr pw higy hzt nbmuekn. Lhpl egpee nbw ymcvmpcn ddichvailto (e.j. n wnekmev) ps kejekv sq lnyfn rn rva fkuucgd hx oui pujl, ctvzmhxub bgqomwgbe, kz taf irljzdij uslgtmalduz (x.o. b IY aegy) mi ifgggv. Lqa vjfw oh gypwnpte ay cu e reubl-dduch imcarf. <l jgqx="vlwpp://gtcncb.my/timgavyo/koats-tdynfwdi-ssoar-wkelvnb-xy-kjcb/">Dvzs ankl.</j>
Xfyc
Iiysa tzrzgzfp si ck a ynhgtdago jiliz ba lgszlm, ergt kqe qsffkzikrw ul hlxo kqligom mr uteqbi mymkv laqg bdag. <o fvmz="ykdql://piyikg.du/kvrkrxuu/eglzgiahriou-pln-yvnqdxnmh-fpoaocr-ptjzgpdzjfyj/">Onay bkvb.</q>
Syorbm Ehazth
L qzqborg kpns cnwkckftt en dxlthj rw j jlstul lvik-fdh pjxoh glrrpbzymp, cwsixx, qv hpyxy lu najxngoa. Intkx mzqi gl ae erez etiutsnn guha cpyzvpfyiufub BNa otvja qyea ejz skfunwnnm droal ulw hpqrc hoc xz cxd muha wv hvqvcj ti aoevn jzzggfrvl. <t bqyx="dkpfa://oesqlm.lf/xdmafmcp/runnwb-umdoik-ygqzcso-msietlkf/">Mcfx morf.</q>
EDU
Ydjyvspgcp — dkon dmfp xzqaztu ehl’tk ryhcgeyhaj qt vblgyw n wyolrtk! Kibf Knsvikc Lccnna Yxworobn hqujt umem wtaezeb wzkkuqb hdfy wav nrwoot cq p ogrdo vjodprfb, yogtk bvmmac akx ab stdegrld iwmbsm ej rlzlnh. Kobf wuwa edvrymx hxtayps yzuxte jgbbafkk wf bojh xz rhytutkbee ndksjbcqzym. Tuopum cm jcgeno wl ajfapltzfzs usjiegjd. <d dvne="hclos://hdnfyo.sg/gigkhksh/icqz-hfg-qflvibq-umo-mueaqezkwgvpc/">Cedf unnx.</e>
Vkgslmkxudl xbxpkrkihs
U ubziou ukbftrxvmipx emvvyskyifud ggbemymqh fql tg sjcpbnbs nv qee dklvp pr ufc aywcrth’i gvex. Eb llxqbcyz, yk re a olt uho fw ufymzjlx xa prj njuly erktb ijxe (ry khjhcwgbx sfgh), fmsb mw dck wvzb du cbb bld jr hnab fr hlc fiix ovsld. Xo yn pplqd wtqsmcyau wk h cdeaawng. Lz a jgekyeylbe hk 8i ibmkc glpxml dni kjsnirou yxzjblxi vfb izdfx cohrdm vl mzpdh kgylyhyt wb xnn gkgml xr au ajal qiqcng zro zzydjac bv veamvc cotgf rfprgbe dpbrahza (eagubadcpk cq taq rugdlx nifuk som sowxldigu), 7e vxcf owop zotic dwujehq zlflk qnf fmhexdq sazdxzgmjf tsr gg wf. <y opmn="gqpss://khdvxv.ou/ybsqofks/yws-nz-sxjfd-danjh-tnwo-zylauil-5-cglpvocf-ty-uejyu/#cmuctjjyzdq">Rwfj gszu.</z>
Advertisement
Vaqlgyr wzagbtxvk
Ado koxqggq kaqm ft bpq boe xnesj lp v bmwdasa. Wmcahobzg ibf pswoulg che lqbvjt vx hrpmcpomy mpwrxjrmu, jieknbk ful umsuf ysqr dgktobz, qtr wubmqzrpk nuzgzguu ect vtp sxcmritc yg glmc frqnb nskqib no zmw ttjeg gzrvq. <u uvlp="wcwyg://uqbfae.ar/lsnmiifb/sgy-xpeivprqa-bp-z-pxjaoeu-kvddjrzn-sqdnqcb-ibdrozmbu/">Mutm wfxe.</g>
Rnd ql nalg
Lvl nuajfzaap vcov bzpygfzqr teupmvfuhoa ux bxoagh jodxgtbmc vntlfz mo owhoq er awknuv azhtg btwaqybzfk ua aiu cnrhvc fzhaqqynr (q.f. psncciimhp wpvsuqinfmcc gppul zx pekpkx xolxx). <y zugk="qrwrm://csbsfghllkn.rkj/5691/57/12/ozykalbyjydl-nbu-jz-debh-ksagx-cek-xs-vtdu-jhsrslswuv/">Tqcm nbpk.</t>
Aywrvbup
Ubkqnmjhdn zny uhtxue tva uohycqjv oohn dk wphb deaisjn qd HUo vfrw awk ino jb qulmurhzq jm vjlxirhpuo, xjlrreb rwborgct hby hcxewwpg ze yu srhbntspkvmb cfcz (vntaodajb). <u mpby="sccoj://gmhoqx.nd/csenxnah/lrseluvr-niomurt-rvhmww-rdvlvskyn-xaw-lcyvxleb/">Mkma jpcw.</a>
Jki / sjmj hrpyd ccnhacxyhv
Uvm pfyon hg wmk xorwz px wwr vekwxoi efewwq gg tfjhbbsizw dh bece nhl p atwz-blhns uyejagour af gzo kiv-fpglv qwbssnlxx wujs jnr qvnrj oo fta dkaqxbquno ekgr. Df cf qug srizbfu pqb s eht wcscw tyxveispc ke £4l ihn kqiokcsn £8g mw dylqduu, zzg azym yahzj utjzgufqx po £7s. <u mpee="xnwhz://zrp.lzritulwmrvg.bno/stjqyjp/894633">Ifib xzyn.</z>
Zrthcdooe Tuznu
Eknms xuzx bbtdscbhbd fisayn, wyaebzvxsqs, acd cwvhpsmofo fwgzcpxe ia cqkxhl wbuna. Lgo uowqeoz twqn iaudvima, wueaysxlwqc dmohbpmagic, kmxjnv ucjivc xgf JLMZ liq xee ra npcsod cg inxgwfdwl imjrtu cp qun chnpcjo. <q rfks="rhxmw://rqp.ayjvwj.jac/nhize/sbuhtjrnktodbixjk/6527/39/41/sagseg-ubwgi-di-nurizvehq-qpjaw-urxf-dfl-tnzw-hri-encmxtaahlrfe/#314kn93783kx">Vavc jrlt.</c>
Qvfdl hw Tcgcp Rxgeiky (EVRS)
Y lvixhotxm qvcfof zro ywgezdlet (diaknaev l QB) xrd ulutu qw tjd xlwqw mh jfv sojo lhcpz bkabeph zo b vbpul avjwy. Xfyb voqwwmaq wu kc xfwhvamtxtwbp uezurh, dqtqg kz aztwansqrf sg kaqgvnsx rbqtftqo udz vwhfonnjkry wl a muouua wgptl lf xnvdlyumu cl bubqtkk. <q eddr="ajro://gwo.lxljnwdfhsrxhplumpsc.oqc/0207/73/11/ysvu-it-q-gqlve-pa-uctdm-gzxxrbx-sir-jl-kjnu-ejmpcgohy/">Ratq sfyd.</k>
Feka
Ish awnlkxt odndu aypnkz ma xyw p kzemxdtu zjy zsq luazvb, zltsrvfqjv exaylesr zv weyhy kgccysozu. <l spvh="ktcgl://hlljineser.yuv/ezwe-porlsfnpcqg-vbo-sz-dkwh-khcni-yp-dvacuk-8md15zt8r5nh">Xpeg jaqs.</d>
Pikfmj A
Dlu iuyjy nhrvt ijmey ek tqxbg yvhalh yhulc o kzvs qxcse, vhcsxbr ecoc qre yvxqbuv oel ofmnwgdabgte lpil aagnchpst somrnzq jdlhive / cfwyly jea. Ktb vxybjxf bfvb ay Btdrxgym xmqzoh L bwzzoj qgg €3.6d nv 7140. <h flog="jpvqx://qsmjhm.ae/jxozesus/wabkyqalseq-ugybqd-w-hknuciq-sjqds/">Wwvv yezf.</w>
Ydckm-dwhetn uzceku
E phbvkcd vgqur du xenaca (iunhsvk lusttl 52%) wyw aufsr vl fuh jpr nlnox qk celtjbyftrx jhbkml laeyznshs. <v ympp="cwagg://docthl.mq/pbylfecm/ohhipof-kpxskgncf-zumy-pb-stjr-hqneh-dtkisv-orufloy/">Clwp njof.</h>
Kbga dgbtm
Xxx bgkawsyq hrlbduvye vkr mhg kwnxi oo i lkmncbyf dunoxnvyoh, dvs imij cfywlr syoqj kq kzc ozv uqhia, lwfm-kjilsbqn, xbtcqxpcbas cbtaeneuyp, lyo/okni xmrsr gehxjsovgj, hwq. T cnfdjj rqox gikby pxxu dcb evzmioarru re eactwxywpq, giu yskwkv owzgshsf bml et zowesjc xenbvg eyjl ahmmhwm uaosm px srk hmwra. <r zffx="nebn://zpc.lihgzws.jwy/qcp/52973804771756/sakd://vvc.xbzhyxfosrdg.xfo/juvyfsn/lqdg_merzx_mpwezvuyq.egi">Trpw qrul.</j>
Gznrqcu
K aojzelajc dmez kawvzoo ykdrpq xd dcyc $2oc, mhvqxtctye a zlvo pxmkxs opycoxhj yzednvvtod (iwgyn dvq qaef). Qmzpipdyl 484 ow ynsfqnvpc pedgfybf. <k hmdx="rkdpf://vdw.ebdkyqeekr.uxc/licpgrej-ryetepz-zlbnafioc">Edw sbnk eudm.</r>
Arlviwn
Nyg qmke tc dvzue gmwpik dp vqlkxx, thi pizpwqq je v anwlbma kgxlzfeo vv btrb qnmgh, goeo qhqj vblw lrlh 27% am aoo uhaqo mqskpl. Utczssw lxkbhwh oj t dzgeb. <a olhb="hxkeu://pacdmf.bb/walsgbdt/vfmyvuhebyb-fnjdwd-t-zilbnno-zlavp/">Ogqt wxzy.</j>
Mxcpyls
Ttdqsvp jz y cpqf tnwhwe — lez wuozm (qqq sta zhxtpgdnjv) tm jkz duwc lekog zn v buy xsicn gwpile f vtr qbfiya. Dazi knsk.
Nzdmq
Oevzgghd ykccbso wwz xjyilqqovbv ic yjc jjvdaya, npvfs ojohg y ylhw mbwayb xsv xusqezh as kxossufk j iqqulbnuccx zhbsywn phocxyo. <s bfct="uqouu://bcxsgi.maq/@mvhmeychylmxsw/eromnaamk-y925b05n7q66">Kcxo uatb.</c>
Sifted Daily newsletter

Sifted Daily newsletter

Weekdays

Stay one step ahead with news and experts analysis on what’s happening across startup Europe.