Yieldlex

Predictable revenue generated by subscription customers per year.

The percentage of customers (or revenue) lost over a period.

Total sales & marketing spend / Number of new customers acquired.

The relationship between the value of a customer and the cost to acquire them.

How much recurring revenue you keep and expand from existing customers over a period.

Retention before expansion, showing how much recurring revenue remains after churn and downgrades.

The value of the company immediately before investment.

The value of the company immediately after the check clears.

How many months the company can survive before running out of cash.

The rate at which a company spends its cash pool in excess of income.

When investors force the employee option pool to be created from the pre-money valuation.

Debt that converts into equity at a later date (usually the next funding round).

Simple Agreement for Future Equity. A simpler, standard alternative to a Convertible Note (popularized by YC).

The maximum valuation at which your Convertible Note/SAFE will convert into equity.

A percentage discount (usually 20%) given to early investors on the next round's price.

A clause ensuring investors get paid back first if the company is sold.

Earning equity over time (usually 4 years).

Rights allowing majority shareholders to force minority shareholders to agree to a sale of the company.

Rights protecting minority shareholders, ensuring they can sell their shares on the same terms as the majority.

Protection for investors if the company raises money in a Down Round.

Acquiring a company using a significant amount of borrowed money (bonds or loans).

Buying a company at a low multiple (e.g. 5x) and selling it at a high multiple (e.g. 10x).

Analysis showing the drivers of PE return: EBITDA Growth vs Multiple Expansion vs Deleveraging.

The initial large company a PE firm buys, intending to acquire smaller 'add-ons' to merge into it.

Committed capital that a PE or VC firm has available to invest but hasn't deployed yet.

The share of profits that the investment manager receives (usually 20%).

Multiple on Invested Capital. Total Cash Returned / Total Cash Invested.

The annual fee (typically 2%) charged by fund managers on committed capital.

The minimum return LPs must receive before GPs earn carried interest.

The pattern of PE fund returns: negative early (fees, investments) then positive later (exits).

A benchmark where Growth Rate + Profit Margin should exceed 40%.

Measures sales efficiency: how much ARR is generated per dollar of S&M spend.

How many months it takes to recover the cost of acquiring a customer.

How much cash is burned to generate each dollar of new ARR.

Valuation divided by ARR, measuring how much investors pay per dollar of revenue.

Measures revenue growth quality by comparing additions to losses.

The earliest funding stage, often from founders, friends, family, or angels.

First institutional funding to build the product and find product-market fit.

Funding to scale a business model that's showing early traction.

Growth capital to scale a proven business model aggressively.

Short-term financing between major rounds, often using convertible notes.

A funding round at a lower valuation than the previous round.

A round led by existing investors with no new outside investors.

The right to invest in future rounds to maintain your ownership percentage.

The right to receive regular financial updates from the company.

The right to match any offer if a shareholder wants to sell their shares.

Veto rights over major company decisions (sale, new funding, etc.).

A position on the company's board of directors with voting rights.

The right to force the company to buy back shares after a certain period.

The first sale of stock to the public, listing on a stock exchange.

Sale of the company to another company, either for cash, stock, or both.

Selling shares to another private investor before an IPO or acquisition.

Acquisition primarily to hire the team, not for the product or revenue.

Shutting down the company and distributing remaining assets to creditors and shareholders.

Going public without raising new capital, allowing existing shares to trade.

Special Purpose Acquisition Company: a shell company that raises money to acquire a private company.