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The Dictionary
Series A/B/C
Subsequent rounds of funding for "startups " typically at increasing valuations and led by venture capital firms.
Mezzanine financing
A type of debt financing that is typically used by companies that are preparing for an IPO or a sale.
ESOP (Employee Stock Ownership Plan)
A plan that allows employees to acquire shares in the company they work for.
Revenue model
The way a startup plans to generate "revenue " such as through selling products or "services " "advertising " or subscription fees.
Growth equity
A type of funding provided to startups that have achieved significant traction and are looking to scale their business.
Royalty financing
A type of funding where an investor provides capital in exchange for a percentage of future revenues.
Employee Stock Purchase Plan (ESPP)
A plan that allows employees to purchase shares in the company they work for at a discounted price.
Market validation
The process of determining whether there is a market for a startup's product or "service " and whether it meets the
Debt financing
A way of raising funds where a company borrows money and agrees to pay it back with interest over a
Revenue-based financing
A type of funding where an investor provides capital in exchange for a percentage of the company's future revenues.
Secondary market
A market for the buying and selling of shares in private "companies " usually facilitated by specialized firms.
Crowdfunding
A method of raising funds by asking a large number of people to make small investments in a startup.
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