VC Terms Flashcards
Shareholder of Record
The name of a shareholder as it exists on the registrar of the issuer.
Shares Outstanding
Refers to a company’s stock currently held by all of its shareholders, including shares held by institutional investors and restricted shares owned by a company’s executives. This number is used to calculate key metrics such as a company’s market capitalization, earnings per share, and cash flow per share.
Stacked Preference
When different classes of preferred stock have senior rights to payment over other classes of preferred stock. Also known as Senior Liquidation Preference.
Stock Option
A right to purchase or sell a share of stock at a specific price within a specified period of time. Stock options are often used as long term incentive compensation for management and employees at high-growth companies.
Stock Plan or Employee Incentive Plan
The Stock Plan is an assimilation of all the rights and economic interests that are attached to company stock, including the company’s bylaws, grant documents, shareholder agreements, etc.
S-3 Registration Rights
The right of investors to require the company to file a short form registration statement on Form S-3. S-3 Registration Rights are similar to Demand Registration Rights, but usually one or two registrations each year are permitted, because the short Form S-3 is less burdensome to the company.
Syndicate
The group of venture investors who participate in the investment round.
TEV
Total Enterprise Value.
TTM
Trailing 12 month revenue; sum of revenue.
Tag-Along Right
The right of a minority investor to receive the same benefits as a majority investor. This often applies to a sale of securities by investors and is also known as co-sale right.
