Venture Capital Handbook: An Entrepreneur’s Guide to Raising Venture Capital

Glossary

• The Words

• What Terms Should You Know?

• Here Are a Few.

This glossary contains some of the more colorful terms used by venture capitalists. It does not include a large number of standard accounting or business terms that you should know. If you find that you do not recognize some of the terms in this book and they are not covered in the glossary, you should refer to a standard business text or your accounting book in order to find definitions of the words being used.

Arm’s length

Refers to business transactions where neither the buyer nor the seller has the ability to dictate the terms and each has every incentive to get the best deal for themselves. In a non–arm’s length transaction you might sell a family member some assets of the business ...