# Glossary

## A
### [AMF (Autorité des Marchés Financiers)](/content/learn/amf-autorite-des-marches-financiers/index.html)
Learn about the AMF (Autorite des Marches Financiers), France's financial sector regulator overseeing markets, investment products, and investor protection.

### [AML (Anti-Money Laundering)](/content/learn/glossary-aml-anti-money-laundering/index.html)
Anti-Money Laundering (AML) compliance is crucial for VC funds to maintain clean capital, protect their reputation, and meet regulatory requirements.

### [Angel Investor: Definition & How to Find Them](/content/learn/glossary-angel-investor/index.html)
Discover how angel investors use their personal funds to support startups, trading capital for equity or convertible debt.

### [AUM (Assets Under Management)](/content/learn/glossary-aum-assets-under-management/index.html)
Assets Under Management (AUM) represents the total market value of investments managed by a financial institution or fund manager on behalf of clients.

## B
### [Bear Market: Definition & Investment Meaning](/content/learn/bear-market/index.html)
A bear market is a prolonged period when securities prices fall 20% or more from recent highs. Learn how to navigate declining markets as an investor.

### [Bridge Round: Definition & When to Use It](/content/learn/glossary-bridge-round/index.html)
A bridge round provides short-term capital to startups between major funding rounds. Learn when bridge financing makes sense and its key terms.

### [Bull Market: Definition & Investment Meaning](/content/learn/bull-market/index.html)
A Bull Market is a period in the financial markets when the prices of assets are rising or are expected to rise.

## C
### [Capital Call/Drawdown](/content/learn/glossary-capital-call-drawdown/index.html)
Learn how a capital call, also known as a drawdown, works as a request from an investment firm to investors.

### [Cap Table: What It Is & How It Works](/content/learn/glossary-what-is-a-cap-table/index.html)
Understand how a cap table works as a crucial tool for tracking equity ownership, investor stakes, and dilution in startups and investment vehicles.

### [Cap vs Uncapped: Convertible Note Terms](/content/learn/glossary-cap-uncapped/index.html)
Understand capped vs uncapped convertible notes and how valuation caps protect early investors by limiting the conversion price in future funding rounds.

### [Carried Interest/Carry](/content/learn/glossary-carried-interest-carry/index.html)
Carried interest aligns investment managers' interests by granting a share of profits beyond their contributions.

### [Common/Preferred Stock](/content/learn/glossary-common-preferred-stock/index.html)
Know the differences between common stock and preferred stock, in terms of voting rights and dividend priority in a company.

### [Contributions: Capital Calls & Fund Investing](/content/learn/glossary-contributions/index.html)
These are funds provided by investors or partners for use in making investments in assets or companies.

### [Convertible Debt / Convertible Note](/content/learn/glossary-convertible-debt-convertible-note/index.html)
What is a convertible note and how does it work? Learn about this popular startup financing instrument that converts debt into equity at a future round.

### [CSSF (Commission de Surveillance du Secteur Financier)](/content/learn/cssf-commission-de-surveillance-du-secteur-financier/index.html)
Learn the role of the CSSF (Commission de Surveillance du Secteur Financier), Luxembourg's Financial Sector Regulator.

## D
### [Distributions: How Fund Profits Are Paid](/content/learn/glossary-distributions/index.html)
Distributions return capital and profits to investors from a fund's investments. Learn how and when LPs receive payouts from successful exits.

### [DPI (Distributed to Paid-In)](/content/learn/glossary-dpi-distributed-to-paid-in/index.html)
DPI (Distributed to Paid-In) is a vital venture capital metric used by LPs to evaluate fund performance.

### [Drag-Along Rights](/content/learn/drag-along-rights/index.html)
Drag-along rights enable majority shareholders to compel minority participation in a sale, simplifying transactions.

## E
### [Equity Round: Startup Funding Explained](/content/learn/glossary-equity-round/index.html)
Learn about equity rounds, the process of selling company shares to raise capital. Understand how startups use equity financing to fund growth and expansion.

## F
### [Fund of Funds: Definition & Structure](/content/learn/glossary-fund-of-funds/index.html)
What is a FoF investment strategy, and what are the benefits and drawbacks for investors, including LPs?

### [Investment Fund: Definition & Types](/content/learn/glossary-fund/index.html)
An investment fund is a pool of capital from the fund's investors, dedicated to make one or several investments.

## G
### [GP (General Partner)](/content/learn/glossary-gp-general-partner/index.html)
Know how General Partner (GP) plays a pivotal role in managing funds and making investment decisions.

## H
### [Hurdle Rate: Definition & How It Works](/content/learn/glossary-hurdle-rate/index.html)
The "Hurdle Rate" in venture capital is the minimum return required for General Partners to start earning a carried interest.

## I
### [IRR (Internal Rate of Return)](/content/learn/glossary-irr-internal-rate-of-return/index.html)
Is Internal Rate of Return (IRR) a reliable metric for venture capital investments? Learn how IRR measures fund performance and its limitations.

## K
### [KYC (Know Your Customer)](/content/learn/glossary-kyc-know-your-customer/index.html)
KYC is a vital process in venture capital, verifying investor identities to reduce risks, including reputational damage and regulatory penalties.

## L
### [LP (Limited Partner)](/content/learn/glossary-lp-limited-partner-co-investor/index.html)
Limited Partners (LPs) are vital investors in venture capital, providing capital for GPs to invest in startups in exchange for a share of returns.

## M
### [Most Favored Nation (MFN) Clause](/content/learn/glossary-mfn-most-favored-nation-clause/index.html)
The Most Favoured Nation (MFN) clause protects early investors by ensuring they receive the best terms offered to later investors in subsequent rounds.

### [Multiple (Investing)](/content/learn/multiple/index.html)
What does multiple mean in the investment context? The exit multiple is a measure of the performance of an investment. Learn how to compute it here.

## P
### [Pre-emption Rights](/content/learn/pre-emption-rights/index.html)
Grant existing shareholders priority to buy new shares in initial offerings, distinct from pro-rata rights.

### [Pre-Money/Post-Money Valuation](/content/learn/glossary-pre-money-post-money-valuation/index.html)
Both of these terms are crucial in determining how much of the company an investor will own after the investment.

## R
### [Funding Round: What It Is & How It Works](/content/learn/glossary-round/index.html)
In venture capital, a funding round is when a private company offers shares to investors. Understand the process and key terms of startup fundraising.

### [Right of First Offer (ROFO)](/content/learn/right-of-first-offer-rofo/index.html)
ROFO: Allows existing shareholders to buy shares before external parties, with a time constraint, differing from ROFR.

## S
### [Secondary Transaction](/content/learn/glossary-secondary-transaction/index.html)
Learn about secondary transactions, which allow early investors, employees, and founders to sell their shares before an IPO or acquisition exit event.

## T
### [Tag-Along Rights](/content/learn/tag-along-rights/index.html)
Tag-along rights protect minority shareholders by allowing them to join when majority shareholders sell their stake, ensuring fair treatment in exits.

### [TVPI (Total Value to Paid In)](/content/learn/glossary-tvpi-total-value-paid-in/index.html)
What is Total Value to Paid In (TVPI) in venture capital, and how is it calculated to assess investment performance?

## U
### [UBO (Ultimate Beneficiary Owner)](/content/learn/glossary-ubo-ultimate-beneficiary-owner/index.html)
Know why UBO is crucial for compliance with anti-money laundering laws and understanding who is actually in control of a company.

### [Unicorn Startup: Definition & Examples](/content/learn/unicorn/index.html)
A unicorn is a privately held startup company valued at over $1 billion USD. Discover how companies achieve unicorn status and what it means for investors.

## V
### [Venture Capital Scout](/content/learn/what-is-a-venture-capital-scout/index.html)
Learn what a VC scout does, what qualifications you need to join a venture capital scout program, and discover the advantages for investors and scouts alike.

### [Venture Round: Startup Funding Stage](/content/learn/glossary-venture-round/index.html)
What is a venture round and how does it work? Learn about Series A, B, C funding stages and how startups raise capital from venture capital investors.

## Z
### [Zombie Company: Definition & Warning Signs](/content/learn/zombie-company/index.html)
A Zombie Company is a firm that, although still in operation, is unable to grow or cover its debt servicing costs with its current earnings.