Compound Annual Growth Rate (CAGR) represents the mean annual growth rate of an investment or business metric over a specified time period, accounting for compounding effects. It smooths out volatility to show consistent year-over-year growth.
Read More →Contra revenue represents negative adjustments to gross sales that determine a company's net revenue figure on financial statements.
Read More →EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) serves as a financial spotlight that illuminates a company's operational profitability by removing the effects of financial structure, tax environments, and accounting decisions. It's like examining a car's engine performance without considering its financing terms or depreciation rate.
Read More →A SAFE is a financing instrument that gives investors the right to receive equity in a startup during a future funding round or exit event, without creating debt or immediately setting a company valuation.
Read More →A 409A valuation is a mandatory independent assessment that determines the fair market value (FMV) of a private company's common stock, primarily for the purpose of pricing employee stock options.
Read More →A tax filing that allows recipients of restricted stock to pay taxes on the grant value immediately rather than waiting until the shares vest.
Read More →Accounts Payable (AP) is the record of money a business owes to vendors and suppliers for purchased goods or services. It represents short-term debt obligations that appear as current liabilities on a company's balance sheet.
Read More →Accounts Receivable (AR) represents the money customers owe your business for products or services you've already delivered. It's essentially your company's IOU collection—funds that belong to you but haven't reached your bank account yet.
Read More →Adjusted Gross Income (AGI) represents your total income from all sources, minus allowable deductions, and it can be tailored for startup founders by including unique adjustments that reflect the costs and contributions specific to launching a new venture.
Read More →Adjusted Operating Income (AOI) is a refined measure of a startup’s core operational performance, stripping out non-recurring, extraordinary, or one-time items to provide a clearer picture of ongoing profitability.
Read More →An Administration Fee is a charge imposed by a lender, bank, fund, or investment group to cover the costs of setting up and managing a new loan, line of credit, convertible note, or other financing arrangements for your business.
Read More →Amortization is an accounting process that systematically spreads the cost of an intangible asset over its useful life. It can also refer to the gradual reduction of a loan’s balance through regular payments over time.
Read More →Asset Lite refers to a business model that minimizes reliance on physical or tangible assets, focusing instead on digital technology, outsourcing, and strategic partnerships.
Read More →Authorized Shares represent the maximum number of shares a company is legally allowed to issue, as defined in its articles of incorporation. This limit sets the stage for future equity distributions, such as funding rounds, employee stock options, and other strategic initiatives.
Read More →Budget variance analysis is the systematic examination of differences between planned financial projections and actual financial results, enabling organizations to identify gaps, understand their causes, and make informed adjustments.
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