A Private Placement Memorandum (PPM) is a detailed disclosure document provided by companies during a private securities offering. It outlines key investment details, including terms, risks, and business fundamentals, helping prospective investors make informed decisions.
Read More →Pro Rata Rights are contractual privileges that allow existing investors to maintain their ownership percentage by participating in future financing rounds, protecting them from dilution.
Read More →Profit margin is a financial metric that indicates the percentage of revenue that exceeds the costs. It is a key indicator of a company's profitability and efficiency in managing its expenses. A higher profit margin suggests that a company is more efficient at converting sales into actual profit.
Read More →Retained Earnings represent the portion of a company's profits that have been kept within the business rather than distributed to shareholders as dividends. Think of it as your company's self-funding growth account—profits that are plowed back into operations to fuel future expansion and stability.
Read More →Return on Equity (ROE) is a performance indicator that reveals how effectively a company converts shareholder investments into profits. Think of it as a financial "yield rate" that shows how many profit dollars are generated from each dollar of equity funding.
Read More →A Roll-Up Vehicle (RUV) is an investment consolidation mechanism structured as a Special Purpose Vehicle that enables multiple angel investors to collectively finance a startup through a single entity.
Read More →The Serviceable Available Market (SAM) represents the realistic portion of a market that your business can actually serve with its current capabilities, resources, and business model.
Read More →The Serviceable Obtainable Market (SOM) represents the realistic market share your business can capture in the near term, considering your current capabilities, competitive landscape, and operational constraints.
Read More →A Silent Partner is an investor or business partner who provides capital to a company without taking an active role in its daily operations or management, allowing them to earn a return on their investment while remaining behind the scenes.
Read More →A Special Purpose Vehicle (SPV) is a legal entity created as a financial "container" for a specific, isolated purpose. Typically structured as a Limited Liability Company (LLC) or Limited Partnership (LP), an SPV serves as a separate entity that shields the parent organization from financial risk while offering tax efficiency.
Read More →Stock warrants are long-term securities created and issued directly by companies, granting holders the right to purchase (or sometimes sell) company shares at a predetermined price until a specific future date. Unlike standard options that trade between investors with proceeds going to sellers, warrant transactions funnel capital directly to the issuing company when exercised.
Read More →Total Addressable Market (TAM) represents the complete revenue opportunity available for a specific product or service within a defined market space. Think of it as the theoretical ceiling for your business if you could capture 100% of your target market—an ambitious north star that guides strategic planning and investment decisions.
Read More →A Vulture Capitalist is a colloquial term used to describe investors or firms that aggressively target distressed or underperforming companies, often seeking to profit from their turnaround or liquidation.
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