Glossary of Terms

Glossary of Terms

Execution Risk The risk that a team, a leader, or a company cannot execute on their promise or their ideas. Investors generally prefer a high-quality team with a low-quality idea over a low-quality idea with a high-quality team. This is because there is so much risk...
Can a Term Sheet be Legally Binding?

Can a Term Sheet be Legally Binding?

As a founder, having an investor is a coveted opportunity. At some point in your investor search, a term sheet may be used. Although a term sheet is a big step in getting funded, the term sheet itself may not be the final document of agreement. While a term sheet is...

What is an angel investor?

An angel investor is someone that has a high net worth and an entrepreneurial background. They typically seek a higher return on the money they invest. Because they usually invest their own money in the venture, they are focused on helping the entrepreneur become...
Exactly What Should Seed Capital Pay For?

Exactly What Should Seed Capital Pay For?

If you plant the smallest seed and give it necessary attention and care, it can grow to be a massive tree that lives thousands of years.  Seed capital is the same thing.   Seed capital is the first money invested in a startup.  You should use it to set the conditions...