Startup And Resource Glossary


A B C D E F G H I J K L M N O P Q R S T U V W X Y Z

A

Accelerator:

Accelerator refers to a company whose aim is to help startups grow their businesses. Techstarts, Y Combinator and Brandery are examples of three well-known accelerators.

Its resource: HELP + NETWORK + INVESTMENT

These companies provide training programs with mentors that last from a couple weeks to a few months. They help startups control their costs, give them access to large networks and provide a small investment in exchange for equity.

These kinds of programs are very selective. For instance, Y Combinator accepts between 1% and 3% of applications.

Accountant:

Every time you hear that word you probably want to go to sleep. However, an accountant is absolutely crucial for a startup. He or she is a practitioner with professional certifications who handles all accounting matters.

Its resource: HANDLE ACCOUNTING + HELP IN MAKING FINANCIAL DECISIONS

An accountant audits and analyses your bookkeeping, prepares annual reports and can help you with financial decisions and conforming to tax laws.

Accredited Investor:

An accredited investor is usually a bank, insurance company, corporation, trust or a director.

Under financial regulation laws, an accredited investor must fulfil some requirements to be classified as such. These requirements vary between countries. For instance, in the USA, if the investor is an individual, he must either have:

  • $1,000,000 or more in net worth. His primary residence is excluded;  
  • Or $200,000 in annual income for the last two years.

If the individual earns jointly with his or her spouse , they must have $300,000 of combined income for the previous two years. They must have a reasonable expectation to maintain the same income level in the current year.  

Its resource: FUNDS

As its name refers, an accredited Investor invests funds into companies in exchange of equity. He or she has enough knowledge to be aware of all the risks to which this investment can lead.

Advisor:

An advisor’s purpose is to guide an entrepreneur to develop their business. He or she is usually a successful individual with expertise in a particular area. There are formal and informal advisors. Formal advisors ask for equity in exchange for their expertise.   

Its resource: PRECIOUS ADVICE

An advisor provides useful advice on how to fundraise, manage business issues, make contacts, establish marketing strategies, and launch products.

Angel Investor:

An angel investor will often be a family member or friend, or someone you may meet on your startup journey. There are small angels that do 1-2 deals a year and larger angels who can do upwards of 20 deals a year.

Its resource: FUNDS

An investor who puts his or her own money into startups or entrepreneurs. He or she tends to give a one-time injection of money at the seed stage of a startup and sometimes during the early stage as well.

B

Broker Dealer:

A broker is a third party that does transactions on securities or assets between buyers and sellers. When a transaction is done, the broker receives a commission.

Its resource: CONCLUDE TRANSACTIONS

A broker can be a useful intermediary to make transactions.

C

Co-Founder:

It is difficult to set up a startup alone. A co-founder helps you develop your startup. To be a co-founder you either sign a co-founder agreement or obtain the directors, shareholders or investors’ permission. Depending on the type of your startup, the co-founder may be an entrepreneur, engineer, VC firm, web developer, web designer, or something else.

Its resource: MANY

A co-founder is a partner with whom you share almost everything (tasks, ideas, costs, risk).  

Corporate Venture Capital:

A corporation invests its own funds into other startups. The investment does not come from angel investors or high net worth Individuals.

Its resource: FUNDS

A corporate venture capital provides funds to the startup during the early and later stages of a startup’s development but only according to its own interests.

Crowdfunding:

A way of raising money that involves a large number of people, usually by utilising online platforms. Crowdfunding is a form of alternative financing and has been used to fund a wide range of for-profit entrepreneurial ventures such as artistic and creative projects, medical expenses, travel, and community-oriented entrepreneurship projects.

Its resource: FUNDS

Crowdfunding provides funds to the startup at its seed stage. It is an easy way to acquire funds to develop the startup.

Customer:

Having plenty of customers must be your first goal. Customers provide cash flow to your startup by purchasing your product or service. They are proof of the success of your startup.

Its resource: CASH FLOW + PROOF OF SUCCESS

F

Friends And Family:

They are your relatives, close friends or not, friends of friends, etc.

Its resource: FUNDS

Your family and friends constitute a good source of funds to set up your startup during its seed stage.

I

Incubator:

An incubator has the same job as an Accelerator but works with startups at their seed stage. The startups are not really set up yet.

Its resource: HELP + NETWORK

Incubators help startups to control their costs or give them access to networks of people. They also provide management training and office space to startups.

L

Lawyer:

A lawyer doesn’t have the same qualifications according to each country. For instance, in France or in the USA there is only one type of lawyer who is able to advise or defend a client. In the UK, there is a difference. In short, a solicitor can only draft all the legal documents whereas a barrister can defend their clients before a court.

Its resource: DRAFTED CONTRACTS AND LEGAL ADVICE TO DEFEND CLIENTS BEFORE A COURT

A lawyer has many functions. First, like a legal marketplace, they can draft contracts for your startup. However, they are much more expensive than a legal marketplace. They advise on legal issues and can plead before a court if you face a dispute with another party.

Lead Investor:

It’s the investor that does the largest investment in a financing round.

Its resource: FUNDS

This investor provides funds to your startup. Thanks to these funds you will able to develop your idea.

Legal Marketplace:

If you think a lawyer is too expensive and isn’t a good fit your startup then a legal marketplace is the best alternative. A legal marketplace is made up of a team of legal experts and lawyers.  

What is it used for? DRAFTED CONTRACTS AND LEGAL ADVICE

A legal marketplace provides a high-quality service at an unbeatable price. In addition to drafting all of the contracts you need (Cookies Policy, Non-Disclosure Agreement, Terms and Conditions, etc), it also advises you on the process you need to adopt to develop your startup with efficiency and how you can find funds easily.

M

Management Team:

Management team refers to the people who manage all of the activities of a company.

Its resource: SUPPORT + SKILLS

Having a good management team is essential for a startup. It provides support in the startup’s activities. The members of the team share their skills and ideas.  

Micro-VC:

Micro-VC is like a super angel. It is a venture fund but smaller and with fewer partners.

Its resource: FUNDS

A Micro-VC provides funds to your startup. Usually, it invests funds during the early stages of a startup.

N

Non-Accredited:

An investor who is not accredited.

Its resource: FUNDS

A non-accredited investor provides funds to your startup. He or she doesn’t have much knowledge about the risks involved with investing in startups.

O

Other Entrepreneurial People:

It’s all of the people with whom you do business with in any area. They are your partners.

Its resource: BUSINESS

For instance, you need a website to make your startup visible online and you will need to ask a web developer to do it for you.

P

Partner:

Partner is a broad term which refers to business partners, investors, co-founders, etc.

Its resource: MANY

Having partners in a startup provides many advantages depending on what you’re looking for (funds, business partnerships, support, help). It’s difficult to develop a startup on your own so get partners you can trust.

S

Service Providers:

A broad term which refers to all the individuals or entities that provide you services.

Its resource: SERVICES

It is services in any area (legal, consulting, communications, etc).

Silent Partner:

An investor who provides only capital to startups. This investor is not involved in the management of the startup. Their liability is limited to the amount of their investment.

Its resource: FUNDS

Contrary to other investors, a silent partner provides funds but is not involved in the startup’s development. That means they’re not sharing their skills and knowledge with the startup.

Strategic Investor:

An investor who adds value to his investment thanks to his industry connections and experience.

Its resource: FUNDS

A strategic investor provides funds to the startup but also shares its knowledge, experience and connections. It is an interesting partner to have for a startup.

Super Angel:

It is an investor who is very active in terms of investments and has a lot of knowledge. For instance, Dave McClure is considered to be a Super Angel.

Its resource: FUNDS

A Super Angel provides funds to the startup in exchange for equity. It can also shares its knowledge on financial matters and get involved in the startup’s management.

V

VC Firm:

A VC firm invests its money in risky startups. In exchange for that money, the firm receives equity in the company and they’re looking for high returns. 

Its resource: FUNDS

A VC firm provides funds at the early and later stages of the startup’s development in exchange for equity.

W

Web Developer:

A web developer is a programmer that specialises in the design and creation of websites or website applications.

Its resource: TECHNOLOGY SKILLS

A web developer is useful in almost every startup as a website is a means to greater visibility, exposure, and leads.

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