Glossary

3rd F - The three F's are Family, Friends and Fools...

Advisor - An advisor is someone with a specific area of...

Balance Sheet - A balance sheet is a financial statement which...

Business Angel - A Business Angel is a person who invests their...

Business Angel Network - A Business Angel Network is an organisation that...

Business Coach - A Business Coach is one who specialises in...

Business Plan - A Business Plan is a document that describes a...

Business Thumbnail - An overview of a business idea designed to test...

Carbon Reduction Commitment - Many organisations may be affected by a new,...

Cash Flow Forecast - The cash flow forecast (also known as the cash...

Coach - Coaching is primarily concerned with the...

Conditions Precedent - Terms in a proposed agreement that must be met...

Copyright - Copyright (symbolized as "©") is a legal...

Crowd Sourcing - Crowdfunding is a loan from lots of people (the...

Data Protection Act - The Data Protection Act gives individuals the...

Director - In relation to a company or other formal...

Disclosure Letter - A letter that forms part of the documentation...

Due Diligence - The process an investor goes through to verify...

Early-stage - One of the stages of a company's development....

Enterprise Investment Scheme - The EIS is designed to help smaller higher-risk...

Entrepreneur - An entrepreneur is a person who has possession...

Equity - The owners of a company will own a share in the...

Executive Coach - An Executive Coach is a Coach who specialises in...

Executive Summary - The first page of text in a business plan that...

Exit Multiple - This term is a measure of the return of...

Expansion - This is the stage of a companies growth where...

Factoring - Factoring is where a business sells its invoices...

Family, Friends & Fools - The name given to three types of people who make...

Founder - With respect to a settlement, organization,...

Grant - A grant is a sum of money given to a company with...

Gross Value Add - Gross Value Add (GVA) measures the contribution...

High Net Worth - A High Net Worth (HNW) individual is defined in...

Incubator - A company that provides facilities to allow...

Information Memorandum - A document that gives a brief overview of a...

Intellectual Property - Intellectual property is a legal field that...

Internal Rate of Return - The Internal Rate of Return is a metric used to...

Investor - Investor is a general term that may be corporate...

Investor Ready - A company is investor ready when it has provided...

Invoice Financing - Invoice Financing or Factoring is where a...

Loan - Financially, a loan is a contractual promise of a...

Long Term Incentive Plan - A reward system designed to improve employees'...

Management Buy In - A management buyin (MBI) occurs when a manager...

Management Buy Out - Management buyouts are similar in all major legal...

Memorandum of Association - The Memorandum of Association sets out the...

Memorandum of Understanding - A Memorandum of Understanding (MoU) is a legal...

Mentor - Mentoring is a form of teaching that includes...

Money Laundering - Money laundering is the practice of engaging in...

National Minimum Wage - The National Minimum Wage (NMW) is a minimum...

Nomad - Nominated adviser - Nomad is a firm or company...

Non-executive Director - A non-executive director (NED, also NXD) or...

Offer Letter - A letter written to make an offer to a company or...

Patent - A patent is a set of exclusive rights granted by...

Payment in Lieu of Notice - An employer may elect to make a payment in lieu...

Positive Ratchet Clause - Some investors or VCs add "positive ratchet...

Pre-start - This is one of the stages of the growth of a...

Preference Shares - Preference shares (also known as preferred stock...

Principals - The principals are the main people who are key to...

Profit - Profit is the reward given to anyone who takes...

Profit and Loss - A profit and loss account is a financial...

Ratchet - Investment agreements may have a ratchet clause...

Risk Premium - The risk premium is the additional amount paid to...

Royalty Based Financing - For a Royalty Based Financing deal the investor...

Sales of Goods Act - Generally refers to the Sale of Goods Act 1979...

Shadow Director - The Companies Act defines a shadow director as a...

Shareholder Agreement - A document that is shared between all...

Shares - A share is one of a finite number of equal...

Sophisticated Investor - A Sophisticated Investor is defined in the...

Start-up - One of the stages of a company's development. At...

Super Angel - Super Angel is a term that has been coined in the...

Sweat Equity - When someone works for a company and is paid in...

Total Shareholder Return - The total return to an investor who holds equity...

Unique Perceived Benefit - Now one of the central strongest mechanisms in...

Unique Selling Proposition - The key benefit that will be satisfied when...

Warranty - A list of statements made about an entity which...

White Meeting - A meeting where there is no agenda so that the...

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