Glossary of Venture Capital & Startup Funding Terms | Flow Capital

Glossary

Annual Recurring Revenue (ARR)

Asset-Based Lending (ABL)

Bridge Financing

CAC Payback Period

Cap Table / Capitalisation Table

Convertible Note

Cost of Capital

Customer Acquisition Cost (CAC)

Dilution / Equity Dilution

Drawdown / Draw Period

Exercise Price / Strike Price

Free Cash Flow (FCF)

Go-To-Market (GTM) Strategy

Gross Revenue Retention (GRR)

Interest-Only Period

Internal Rate of Return (IRR)

Liquidation Preference

Material Adverse Change (MAC) Clause

Mezzanine Financing

Minimally Dilutive Capital

Monthly Recurring Revenue (MRR)

Net Revenue Retention (NRR)

Non-dilutive Financing

Personal Guarantee

PIK Interest (Payment-in-Kind)

Pre-money / Post-money Valuation

Prepayment Penalty

Product-Market Fit

Revenue-based Financing (RBF)

Runway / Cash Runway

Security Interest / Collateral

Series A / Series B Financing

Subordinated Debt

Venture Debt / Venture Lending

Warrant / Venture Debt Warrants

Working Capital