GCN Sales – Glossary of Startup/Investor Terms

 

Investor Types & Legal Qualifications

Accredited Investor – An individual or entity meeting SEC criteria (e.g., $1M+ net worth or $200k+ annual income) allowing them to invest in private deals.
Qualified Purchaser – An individual or entity with $5M+ in investments; allows access to broader fund opportunities (e.g., under 3(c)(7) exemption).
Institutional Investor – Entities like banks, insurance companies, and pension funds investing professionally in private markets.
LP (Limited Partner) – An investor in a VC or PE fund who provides capital but doesn’t manage the fund.
GP (General Partner) – The fund manager who makes investment decisions and manages the fund.
Syndicate – A group of investors pooling funds into a single deal, often led by a lead investor.
SPV (Special Purpose Vehicle) – A legal entity created to invest in a single startup or asset.
Fund-of-Funds – An investment fund that invests in other venture or private equity funds.
Impact Investor – An investor looking for both financial return and measurable social/environmental impact.
Crowdfunding Investor – Individuals investing small amounts into startups via platforms like Wefunder or StartEngine.

Industry-Specific & Sector Terms

Biotech – Startups focused on drug development, medical devices, or biological innovations.
Fintech – Companies innovating in financial services (e.g., payments, lending, insurance).
Medtech / Healthtech – Startups improving health outcomes through technology.
Cleantech / ClimateTech – Solutions that reduce environmental harm or address climate change.
Deep Tech – Startups built on significant scientific or engineering innovations.
Edtech – Technology applied to education (e.g., platforms, tutoring, test prep).
Proptech – Real estate-related startups (e.g., digital brokers, property management).
LegalTech – Startups streamlining legal workflows (e.g., contract review tools).
AgTech – Agricultural innovation (e.g., smart irrigation, food supply chain platforms).
Insurtech – Modernizing insurance through technology (e.g., on-demand coverage).
eCommerce Enablement – Tools that support online stores (e.g., Shopify apps, fulfillment software).
AR/VR/XR – Augmented/Virtual/Extended Reality technologies.
Web3 / DeFi / DAO – Blockchain-powered tools for decentralized finance and governance.
IoT (Internet of Things) – Smart devices connected to the internet (e.g., smart thermostats, wearables).

Founder/Startup Attributes & Talking Points

Solo Founder – A startup with a single founder (investors often prefer cofounder teams).
Technical Cofounder – A cofounder with software or engineering expertise.
Traction Metrics – Data showing growth (e.g., revenue, DAUs, MAUs, churn).
Revenue-Generating – A company that is actively making money (vs. pre-revenue).
Customer Pipeline – The number or value of deals in progress or forecasted.
Retention Strategy – How the company keeps users/customers engaged.
Exit Potential – How acquirable the company is (e.g., ideal targets, past industry exits).
Market Size (TAM, SAM, SOM) – Total, Serviceable, and Obtainable market opportunity.
Competitive Moat – What makes the company defensible from competition.
IP Portfolio – Patents or other protected intellectual property owned.

Event Sales & Sponsorship-Related Terms

Booth Sponsor – A company paying for branding and table space at an event.
Presenting Sponsor – A higher-tier sponsor, often with stage time and top visibility.
Investor Dinner – Exclusive meal with a curated group of investors and presenting companies.
Activation – A brand experience or booth setup that draws engagement at an event.
Event ROI – The business outcome or value derived from participating in an event.
Lead Capture – Collecting attendee contact information at a booth or session.
Post-Event Funnel – Follow-up sequence after an event using leads collected.
Event Deck – A presentation or PDF describing sponsorship opportunities and benefits.
Hosted Buyer Model – A structure where key attendees are given incentives to attend and meet sponsors.
Warm Transfer – When a team member or sponsor introduces a lead directly to another partner.

Legal & Compliance (Advanced Terms)

409A Valuation – An independent appraisal used to price stock options.
KYC / AML – Know Your Customer / Anti-Money Laundering — compliance for financial or investment entities.
Form D – SEC form filed by companies raising money under Regulation D exemptions.
Blue Sky Laws – State securities laws startups must comply with during fundraising.
Reg D / Reg CF / Reg A+ – SEC fundraising exemptions for private offerings and crowdfunding.
Data Room – A folder of due diligence materials made available to investors.
NDA (Non-Disclosure Agreement) – Legal agreement protecting confidential information.
Right of First Refusal (ROFR) – An investor’s right to match a new investor’s terms.
Pro Rata Rights – The right to maintain ownership % by investing in future rounds.
Option Pool – Shares set aside for employees and future team members.