Terms on legal.

An independent appraisal of a private company's common stock, used to set the strike price for employee stock options in the US.

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 unique nine-digit number the US IRS assigns to your business for tax and identification purposes, like a Social Security number for your company.

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

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

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

The process of earning equity over time, so shares or options only fully belong to a person after they stay for a set period.