Terms on fundraising.

The rate at which your company spends cash each month, showing how quickly you're depleting your bank balance.

A record of who owns what in your company: every shareholder, their share count, class, and ownership percentage.

A short-term loan to a startup that converts into equity at a later priced round instead of being repaid in cash.

The reduction in your ownership percentage that happens when a company issues new shares, typically to raise money or grant options.

A reserved block of company shares set aside to grant as stock options to employees, aligning their upside with the company's success.

The percentage of revenue left after the direct costs of delivering your product or service, a core measure of business quality.

The two most common US business structures: an LLC offers pass-through tax and flexibility; a C-corp is standard for raising venture capital.

Monthly and annual recurring revenue: the predictable subscription income a business earns each month or year.

How many months your company can keep operating before it runs out of cash, at its current spending rate.

A simple contract that gives an investor the right to future equity in exchange for cash now, converting to shares at a later priced round.

A framework for sizing your market: total demand (TAM), the slice you can serve (SAM), and the share you can realistically win (SOM).

A mostly non-binding summary of the key terms of an investment, used to agree the deal before lawyers draft the final contracts.