Valuation Methods

A financing instrument that allows investors to provide capital to a company in exchange for the right to receive equity at a later date, typically during a future funding round.

Return on investment (ROI) is a measure of the profitability of a particular investment.

An ‘exit’ is when a founder leaves a startup. For many founders, this is something they’ve planned for from day one, perhaps even hoping to build a unicorn company. They created the startup with the plan of cashing out at some point by selling ownership of the company either to investors or to another company.