{"id":6591,"date":"2019-03-08T17:14:45","date_gmt":"2019-03-08T17:14:45","guid":{"rendered":"https:\/\/www.portugalventures.pt\/glossario\/"},"modified":"2020-07-17T15:15:45","modified_gmt":"2020-07-17T15:15:45","slug":"glossary","status":"publish","type":"page","link":"https:\/\/www.portugalventures.pt\/en\/applications\/glossary\/","title":{"rendered":"Glossary"},"content":{"rendered":"

[vc_row custom_border_color=”#dddddd” border_style=”dashed” lg_spacing=”border_top:1;border_bottom:1;padding_top:20;padding_bottom:20″ el_id=”glossary-filter”][vc_column][vc_column_text]<\/p>\n

A<\/a> | B<\/a> | C<\/a> | D<\/a> | E<\/a> | F<\/a> | G | H | I<\/a> | J<\/a> | K | L<\/a> | M<\/a> | N<\/a> | O<\/a> | P<\/a> | Q<\/a> | R<\/a> | S<\/a> | T<\/a> | U<\/a> | V<\/a> | W | X | Y | Z<\/p>\n

[\/vc_column_text][\/vc_column][\/vc_row][vc_row el_id=”A” lg_spacing=”padding_top:50″][vc_column][vc_row_inner][vc_column_inner width=”1\/2″][vc_column_text]<\/p>\n

A<\/h2>\n

[\/vc_column_text][\/vc_column_inner][vc_column_inner width=”1\/2″][vc_btn title=”Voltar ao topo” style=”flat” shape=”round” color=”green” size=”sm” align=”right” link=”url:%23page|||”][\/vc_column_inner][\/vc_row_inner][vc_tta_accordion style=”flat” shape=”square” spacing=”10″ active_section=”1000″ css_animation=”none” no_fill=”true” collapsible_all=”true”][vc_tta_section title=”Accelerator” tab_id=”1553536288411-8f342b6a-b1831553775458298″][vc_column_text]A\u00a0program that startups can apply to that\u00a0provides mentorship, most times for a chunk of equity, in an effort to help the company grow. Most accelerators are geared towards helping early-stage companies preparing for Venture Capital funding.[\/vc_column_text][\/vc_tta_section][vc_tta_section title=”Anti-Dilution Protection” tab_id=”1594822283864-c6272251-5cb3″][vc_column_text]\u00a0<\/b>The option afforded to holders of shares that carry special rights to maintain the economic value of their shares whenever a new increase in the share capital of the company takes place.[\/vc_column_text][\/vc_tta_section][\/vc_tta_accordion][\/vc_column][\/vc_row][vc_row el_id=”B” lg_spacing=”padding_top:120″][vc_column][vc_row_inner][vc_column_inner width=”1\/2″][vc_column_text]<\/p>\n

B<\/h2>\n

[\/vc_column_text][\/vc_column_inner][vc_column_inner width=”1\/2″][vc_btn title=”Voltar ao topo” style=”flat” shape=”round” color=”green” size=”sm” align=”right” link=”url:%23page|||”][\/vc_column_inner][\/vc_row_inner][vc_tta_accordion style=”flat” shape=”square” spacing=”10″ active_section=”1000″ css_animation=”none” no_fill=”true” collapsible_all=”true”][vc_tta_section title=”Balance Sheet” tab_id=”1553775625406-8a4cc6d3-5f7c”][vc_column_text]An accounting document that reflects the financial situation of a company at a given point in time, recording what is owns and its rights (assets), equity capital, and its obligations to third parties (liabilities).[\/vc_column_text][\/vc_tta_section][vc_tta_section title=”Barriers to Entry” tab_id=”1553775866969-d3e680a1-b6dd”][vc_column_text]Hurdles that companies face when entering a given market as newcomers to such market, typically generated by established companies. Barriers to entry include, for example, brands, patents, exclusive rights to a distribution channel, large investments required to get established.[\/vc_column_text][\/vc_tta_section][vc_tta_section title=”Barriers to Exit” tab_id=”1553792920039-e5608c51-c2be”][vc_column_text]Difficulty in leaving the industry when there are low or even negative returns. For example, industries that require investment in specialised assets tend to have greater barriers to exit.[\/vc_column_text][\/vc_tta_section][vc_tta_section title=”Benchmark” tab_id=”1553792919519-7ad80338-600d”][vc_column_text]A market reference and process by which a company compares and measures its current relative status. An investor references a company’s growth by determining whether or not they have met certain benchmarks, ie, market references. For example, company A has met the benchmark of having X amount of recurring revenue after 2 years in the market.[\/vc_column_text][\/vc_tta_section][vc_tta_section title=”Bootstrap” tab_id=”1553792919055-dd23c675-fc4a”][vc_column_text]The creation of a business funded exclusively by the entrepreneur’s direct resources or the company’s business revenue.[\/vc_column_text][\/vc_tta_section][vc_tta_section title=”Board of directors” tab_id=”1553793114013-462a1f19-f3af”][vc_column_text]A group of individuals, elected by stockholders, chosen to oversee and general manager the affairs of a company. A board typically includes investors and independent members with industry high profile and track record. Not all startups have a board, but investors typically require a board seat after investing.[\/vc_column_text][\/vc_tta_section][vc_tta_section title=”Breakeven (critical point)” tab_id=”1553793118952-874f9835-c928″][vc_column_text]Point from which the company begins to generate positive operating results. The lower the critical point of a company, the easier it will be for the company to reach it and the lower its economic risk.[\/vc_column_text][\/vc_tta_section][vc_tta_section title=”Bridge loan” tab_id=”1553793113277-1e104efa-9ed2″][vc_column_text]Short-term loan that serves as a \u201cbridge\u201d financing prior to a long-term debt or equity investment can be assured.[\/vc_column_text][\/vc_tta_section][vc_tta_section title=”Budget” tab_id=”1553793235961-a090c2eb-4412″][vc_column_text]Regular forecast, usually annual, prepared by a company, that includes the expected and reference financials for that period, including variable costs, revenues, expenses, investment and sources of funding.[\/vc_column_text][\/vc_tta_section][vc_tta_section title=”Burn rate” tab_id=”1553793237691-72eeac9a-322a”][vc_column_text]A time-based metric reflecting how much cash it consumes on any given time-frame. Burn rates are typically calculated over annual or monthly periods, and in some cases can be calculated on a weekly or daily basis.[\/vc_column_text][\/vc_tta_section][vc_tta_section title=”Business Angels (BA)” tab_id=”1553879635469-31521183-0b5d”][vc_column_text]Individual investor who directly invests its own money typically in companies in the seed or start-up stage. BAs make their own investment decisions and are financially independent, in other words, a possible total loss of their investments will not significantly change the economic situation of their assets. Some BAs, in addition to investing, also monitor and provide strategic support to entrepreneurs. They are also known as Informal Venture Capital Investors.[\/vc_column_text][\/vc_tta_section][vc_tta_section title=”Business Model” tab_id=”1553879734898-9b251e89-9bfc”][vc_column_text]The structured process in which the company is going to create value, deliver it to its clients and generate income in the process.[\/vc_column_text][\/vc_tta_section][vc_tta_section title=”Business to business (B2B)” tab_id=”1553879790274-36b5039b-e44a”][vc_column_text]A business that is targeting another business with its product or services. B2B technology is also sometimes referred to as enterprise technology. This is different from B2C which stands for business to consumer, and involves selling products or services directly to end-users consumers.[\/vc_column_text][\/vc_tta_section][\/vc_tta_accordion][\/vc_column][\/vc_row][vc_row el_id=”C” lg_spacing=”padding_top:120″][vc_column][vc_row_inner][vc_column_inner width=”1\/2″][vc_column_text]<\/p>\n

C<\/h2>\n

[\/vc_column_text][\/vc_column_inner][vc_column_inner width=”1\/2″][vc_btn title=”Voltar ao topo” style=”flat” shape=”round” color=”green” size=”sm” align=”right” link=”url:%23page|||”][\/vc_column_inner][\/vc_row_inner][vc_tta_accordion style=”flat” shape=”square” spacing=”10″ active_section=”1000″ css_animation=”none” no_fill=”true” collapsible_all=”true”][vc_tta_section title=”Cap Table” tab_id=”1553793365474-7c7857c6-2e5a”][vc_column_text]A\u00a0capitalization table\u00a0(or cap table) is a table providing a break-down of a company’s percentages of ownership, equity dilution, and value of equity in each round of investment by founders, investors, and other equity investors.[\/vc_column_text][\/vc_tta_section][vc_tta_section title=”Capital” tab_id=”1553793444324-b7367763-7109″][vc_column_text]Financial resources currently available for investment of funding operations. Entrepreneurs raise capital to start a company and continue raising capital to fuel growth.[\/vc_column_text][\/vc_tta_section][vc_tta_section title=”Capital Under Management” tab_id=”1553793549477-a1ae19a2-3e7d”][vc_column_text]Refers to the total\u00a0capital which the VC\u00a0manages on behalf of its own investors and themselves.[\/vc_column_text][\/vc_tta_section][vc_tta_section title=”Capped notes” tab_id=”1553793531421-02c04afb-9790″][vc_column_text]Refers to a top level limit placed on investor notes in a round of financing. An example is when Entrepreneurs and investors agree to place a \u201ccap\u201d on the valuation of the company when notes can be converted into equity. This means investors will own a certain percentage of a company relative to that cap when the company raises another round of funding if the round is priced higher that such cap. Uncapped rounds are generally more favorable to the entrepreneurs. For the absence of doubt, the Entrepreneurs should be away that the cap is not typically the only pricing reference on a convertible note.[\/vc_column_text][\/vc_tta_section][vc_tta_section title=”Cash Flow” tab_id=”1553793627467-6d96194d-cc8b”][vc_column_text]Amount of cash that is collected and deployed from and to third parties by a business during a given period.[\/vc_column_text][\/vc_tta_section][vc_tta_section title=”Closing” tab_id=”1553793541178-ee6ed5fe-b88a”][vc_column_text]Refers to the process of completing all tasks and terms on the initial drafting of a contract in order for a contract to be signed and put in force.[\/vc_column_text][\/vc_tta_section][vc_tta_section title=”Co-creation” tab_id=”1553793539514-6f46e820-74da”][vc_column_text]Development process of a solution, in which all interested parties are invited to play an active role, in an equal and reciprocal relationship.[\/vc_column_text][\/vc_tta_section][vc_tta_section title=”Competitive Advantage” tab_id=”1553793537948-c5f8dc74-e047″][vc_column_text]The advantage a company has over its competitors, generating a differentiation and\/or superior value creation, perception and performance than the alternatives.[\/vc_column_text][\/vc_tta_section][vc_tta_section title=”Competition” tab_id=”1553880232999-de63a3e2-b0bc”][vc_column_text]Direct: Competition between two companies that sell the same product\/service in the same market;<\/p>\n

Indirect: Competition between two companies that sell different products\/services, but which can be used or perceived by customers as satisfying in a sufficiently acceptable way the same need.[\/vc_column_text][\/vc_tta_section][vc_tta_section title=”Convertible debt” tab_id=”1553880308215-22782326-f51b”][vc_column_text]Debt that can be converted to equity based on certain conditions, typically a pre-defined valuation and date.[\/vc_column_text][\/vc_tta_section][vc_tta_section title=”Coworking” tab_id=”1553793442422-f3b18ae5-e4e3″][vc_column_text]Office space shared by entrepreneurs. The aim is to share all the resources a company or project needs to operate, which, in most cases, allows for a more informal environment and a strong interconnection.[\/vc_column_text][\/vc_tta_section][vc_tta_section title=”Crowdfunding” tab_id=”1553793746775-bbfd10e9-e9be”][vc_column_text]The\u00a0process of funding a venture (equity crowdfunding) or production of a product (reward crowdfunding) by raising small individual amounts of capital from a large number of people (the crowd), usually through an online platform.[\/vc_column_text][\/vc_tta_section][vc_tta_section title=”Crowdsourcing” tab_id=”1553793745304-3254d6d8-1544″][vc_column_text]Production model that uses the intelligence and collective knowledge and volunteers, generally spread across the Internet, to solve problems, create content and solutions or develop new technologies – and also to generate the flow of information.[\/vc_column_text][\/vc_tta_section][vc_tta_section title=”Current Assets” tab_id=”1553880451783-19e9aaa6-72f1″][vc_column_text]Assets that are not long lasting or permanent in a company. They are short-term assets and of greater liquidity, such as deposits, accounts receivable and inventory.[\/vc_column_text][\/vc_tta_section][vc_tta_section title=”Current Liabilities” tab_id=”1553880490300-020050da-66c9″][vc_column_text]The company’s debts, which should be paid within less than twelve months.[\/vc_column_text][\/vc_tta_section][\/vc_tta_accordion][\/vc_column][\/vc_row][vc_row el_id=”D” lg_spacing=”padding_top:120″][vc_column][vc_row_inner][vc_column_inner width=”1\/2″][vc_column_text]<\/p>\n

D<\/h2>\n

[\/vc_column_text][\/vc_column_inner][vc_column_inner width=”1\/2″][vc_btn title=”Voltar ao topo” style=”flat” shape=”round” color=”green” size=”sm” align=”right” link=”url:%23page|||”][\/vc_column_inner][\/vc_row_inner][vc_tta_accordion style=”flat” shape=”square” spacing=”10″ active_section=”1000″ css_animation=”none” no_fill=”true” collapsible_all=”true”][vc_tta_section title=”Deadline” tab_id=”1553793956937-7a068700-7921″][vc_column_text]Concept used to specify the time limit for a particular action.[\/vc_column_text][\/vc_tta_section][vc_tta_section title=”Deal Flow” tab_id=”1553794036611-4f6387f6-4558″][vc_column_text]The rate at which investment projects and business proposals are received by investors, like Business Angels, or Venture Capital Firms. It is an indication of the vitality of the business in this sector of activity.[\/vc_column_text][\/vc_tta_section][vc_tta_section title=”Dilution” tab_id=”1553794034972-87c5e94a-7cdf”][vc_column_text]Is the decrease in existing shareholders\u2019 ownership (as a percentage) of a company due to the company\u2019s issuing of new equity.[\/vc_column_text][\/vc_tta_section][vc_tta_section title=”Disruptive innovation” tab_id=”1554798081730-8eef2868-dfd3″][vc_column_text]Innovation based on scientific and\/or technological rationale at both the fundamental and incremental level of scientific state-of-the art, resulting in differentiation that is potentially capable of transforming an industry or value chain and which bestows its lead product with a marked ability to stand out from the crowd and its competitors[\/vc_column_text][\/vc_tta_section][vc_tta_section title=”Drag Along” tab_id=”1594822168734-50b00427-2ddf”][vc_column_text]Means the option afforded to the selling shareholder(s) to collectively compel the other shareholders to sell their shares to a third party.[\/vc_column_text][\/vc_tta_section][vc_tta_section title=”Due Diligence” tab_id=”1553794230029-790e2b35-bbfc”][vc_column_text]An analysis\/audit process carried out by a person or entity prior to entering a business agreement, namely before making an investment in a firm or company, to minimise risk.[\/vc_column_text][\/vc_tta_section][\/vc_tta_accordion][\/vc_column][\/vc_row][vc_row el_id=”E” lg_spacing=”padding_top:120″][vc_column][vc_row_inner][vc_column_inner width=”1\/2″][vc_column_text]<\/p>\n

E<\/h2>\n

[\/vc_column_text][\/vc_column_inner][vc_column_inner width=”1\/2″][vc_btn title=”Voltar ao topo” style=”flat” shape=”round” color=”green” size=”sm” align=”right” link=”url:%23page|||”][\/vc_column_inner][\/vc_row_inner][vc_tta_accordion style=”flat” shape=”square” spacing=”10″ active_section=”1000″ css_animation=”none” no_fill=”true” collapsible_all=”true”][vc_tta_section title=”Early Stage” tab_id=”1553794334331-01f82b5c-fa76″][vc_column_text]Initial phase in the life cycle of a company that includes the Seed and Start-up stages and, in general, runs until there are recurring sales of products\/services and the company becomes cash-flow positive.[\/vc_column_text][\/vc_tta_section][vc_tta_section title=”Early Stage Financing” tab_id=”1553794397124-758c271b-a5ff”][vc_column_text]Financing of companies that are setting up or at a stage where they have recently started operating and the sales volume is still non-existent or very low to its potential as a business.[\/vc_column_text][\/vc_tta_section][vc_tta_section title=”EBITDA (Earnings before Interest, Taxes, Depreciation and Amortization)” tab_id=”1553794395730-c971285d-f571″][vc_column_text]A cash flow measurement that takes operational revenue less expenses without including interest, taxes, depreciation and amortization. It is widely used as a ballpark proxy for operational cash-flow (assuming no working capital).[\/vc_column_text][\/vc_tta_section][vc_tta_section title=”Enterprise” tab_id=”1553794394347-64e0789a-16b7″][vc_column_text]The term enterprise typically refers to a company or business (i.e. an enterprise tech startup is a company that is building technology for businesses).[\/vc_column_text][\/vc_tta_section][vc_tta_section title=”Enterprise Value” tab_id=”1553794392907-aec1f2db-9764″][vc_column_text]A measure of a company\u2019s value calculated as market capitalization, including all debt and equity interests, minus excess cash.[\/vc_column_text][\/vc_tta_section][vc_tta_section title=”Entrepreneur” tab_id=”1553794498936-7a86b27d-7772″][vc_column_text]An individual who starts a business venture, assuming all potential risk and reward for his or herself.[\/vc_column_text][\/vc_tta_section][vc_tta_section title=”Entrepreneur in residence (EIR)” tab_id=”1553794574335-dd5e5a42-d563″][vc_column_text]A seasoned entrepreneur who is employed by a Venture Capital Firm to help the firm vet potential investments and mentor the firm’s portfolio companies in different aspects of operations and strategy.[\/vc_column_text][\/vc_tta_section][vc_tta_section title=”Equity Investment” tab_id=”1553794497262-6adf8d08-8996″][vc_column_text]Capital made available to a company, which is invested, directly or indirectly, in exchange for a corresponding share of the current and future cash-flows to shareholders.[\/vc_column_text][\/vc_tta_section][vc_tta_section title=”Exit” tab_id=”1553794590409-8bc35013-fe92″][vc_column_text]The sale of participations held through an intermediary or directly to another investor, including trade sale, amortisation loss, reimbursement of shares\/loans, the sale to another financial intermediary or to another investor, the sale to a financial institution and the selling shares to the public, including an initial public offering (IPO).[\/vc_column_text][\/vc_tta_section][\/vc_tta_accordion][\/vc_column][\/vc_row][vc_row lg_spacing=”padding_top:120″ el_id=”F”][vc_column][vc_row_inner][vc_column_inner width=”1\/2″][vc_column_text]<\/p>\n

F<\/h2>\n

[\/vc_column_text][\/vc_column_inner][vc_column_inner width=”1\/2″][vc_btn title=”Voltar ao topo” style=”flat” shape=”round” color=”green” size=”sm” align=”right” link=”url:%23page|||”][\/vc_column_inner][\/vc_row_inner][vc_tta_accordion style=”flat” shape=”square” spacing=”10″ active_section=”1000″ css_animation=”none” no_fill=”true” collapsible_all=”true”][vc_tta_section title=”Fixed Tangible Assets” tab_id=”1553794346366-d68ab608-da2e”][vc_column_text]Resources owned by the company, that are permanent or constant, not meant to be sold or transformed as a result of the company\u2019s regular activities.[\/vc_column_text][\/vc_tta_section][vc_tta_section title=”Follow-On Investment” tab_id=”1553794346881-eb83f2c5-0243″][vc_column_text]Follow-on investment is a subsequent investment made by an investor who has made a previous investment in the company.[\/vc_column_text][\/vc_tta_section][vc_tta_section title=”Founder” tab_id=”1553794791479-fa619c4f-18ef”][vc_column_text]The creator of the company and partners, if they exist, are the co-founders.[\/vc_column_text][\/vc_tta_section][vc_tta_section title=”Fully diluted” tab_id=”1553794790831-3fe7a2e2-3185″][vc_column_text]Fully diluted cap table is the individual percentage ownership by shareholders outstanding if all possible sources of conversion, such as convertible bonds and employee stock options, are exercised into stocks.[\/vc_column_text][\/vc_tta_section][vc_tta_section title=”Fund” tab_id=”1553794790140-b233cdea-0ce1″][vc_column_text]An investment vehicle comprising capital commitment. Funds typically have specific investment thesis, including sectors, regions and deal amounts that they target for their investments.[\/vc_column_text][\/vc_tta_section][vc_tta_section title=”Fund of Funds” tab_id=”1553794789219-623b77c0-0626″][vc_column_text]A fund that invests in other funds.[\/vc_column_text][\/vc_tta_section][vc_tta_section title=”Fundraising” tab_id=”1553794897875-98cc0088-75c2″][vc_column_text]The process for seeking capital commitments from investors[\/vc_column_text][\/vc_tta_section][\/vc_tta_accordion][\/vc_column][\/vc_row][vc_row el_id=”I” lg_spacing=”padding_top:120″][vc_column][vc_row_inner][vc_column_inner width=”1\/2″][vc_column_text]<\/p>\n

I<\/h2>\n

[\/vc_column_text][\/vc_column_inner][vc_column_inner width=”1\/2″][vc_btn title=”Voltar ao topo” style=”flat” shape=”round” color=”green” size=”sm” align=”right” link=”url:%23page|||”][\/vc_column_inner][\/vc_row_inner][vc_tta_accordion style=”flat” shape=”square” spacing=”10″ active_section=”1000″ css_animation=”none” no_fill=”true” collapsible_all=”true”][vc_tta_section title=”Incubator” tab_id=”1553795071477-e2a149d6-c59d”][vc_column_text]An Institution to host and develop startups. An Incubator provides early-stage startup companies with office space, resources, advice and networking opportunities. It is an analogy with the growth of infants: those that are born fragile stay in the incubator until they are ready to hold their own.[\/vc_column_text][\/vc_tta_section][vc_tta_section title=”Innovation” tab_id=”1553795168677-d0a3798b-ab0e”][vc_column_text]Implementation of a new idea or improvement of a solution through a new product, process, organisational or marketing method, with the purpose of increasing performance, knowledge and competitive position.[\/vc_column_text][\/vc_tta_section][vc_tta_section title=”Innovative project” tab_id=”1554798141267-52dd048d-6a60″][vc_column_text]An original concept or new application for technical solutions that can be transformed into tangible products or services that are more effective and efficient in\u00a0 satisfying needs compared to those already on the market. The innovation can also be the result of a new approach to the market or a business model that enables significant growth.[\/vc_column_text][\/vc_tta_section][vc_tta_section title=”IPO (Initial Public Offering)” tab_id=”1553795150370-c6fc1562-f1c2″][vc_column_text]The first sale of shares of a company when it goes public and starts selling shares on the stock exchange that become publically traded[\/vc_column_text][\/vc_tta_section][vc_tta_section title=”Intangible Assets” tab_id=”1553795072085-501c5435-6efa”][vc_column_text]Identifiable non-monetary assets that lack physical substance or are intangible, such as software, licenses and patents.[\/vc_column_text][\/vc_tta_section][\/vc_tta_accordion][\/vc_column][\/vc_row][vc_row el_id=”J” lg_spacing=”padding_top:120″][vc_column][vc_row_inner][vc_column_inner width=”1\/2″][vc_column_text]<\/p>\n

J<\/h2>\n

[\/vc_column_text][\/vc_column_inner][vc_column_inner width=”1\/2″][vc_btn title=”Voltar ao topo” style=”flat” shape=”round” color=”green” size=”sm” align=”right” link=”url:%23page|||”][\/vc_column_inner][\/vc_row_inner][vc_tta_accordion style=”flat” shape=”square” spacing=”10″ active_section=”1000″ css_animation=”none” no_fill=”true” collapsible_all=”true”][vc_tta_section title=”Joint-Venture” tab_id=”1553795374708-8b871a42-52a6″][vc_column_text]Participation of several companies in the capital of a legally independent economic unit, in order to develop a productive and\/or commercial activity, where the respective assets, returns and risks of the business are shared.[\/vc_column_text][\/vc_tta_section][\/vc_tta_accordion][\/vc_column][\/vc_row][vc_row el_id=”K” lg_spacing=”padding_top:120″][vc_column][vc_row_inner][vc_column_inner width=”1\/2″][vc_column_text]<\/p>\n

K<\/h2>\n

[\/vc_column_text][\/vc_column_inner][vc_column_inner width=”1\/2″][vc_btn title=”Voltar ao topo” style=”flat” shape=”round” color=”green” size=”sm” align=”right” link=”url:%23page|||”][\/vc_column_inner][\/vc_row_inner][vc_tta_accordion style=”flat” shape=”square” spacing=”10″ active_section=”1000″ css_animation=”none” no_fill=”true” collapsible_all=”true”][vc_tta_section title=”Key Performance Indicators (KPIs)” tab_id=”1553881791096-9c936c7a-5cc7″][vc_column_text]A set of measures that can be used to gauge the performance and state of a given business or sector. KPIs can include revenue growth measures, monthly active user growth rates for certain technology firms or leverage ratios, among many others. Depending on a given business\u2019s strategic and operational initiatives, KPIs hold different priorities and relevancies on managing and monitoring performance.[\/vc_column_text][\/vc_tta_section][\/vc_tta_accordion][\/vc_column][\/vc_row][vc_row el_id=”L” lg_spacing=”padding_top:120″][vc_column][vc_row_inner][vc_column_inner width=”1\/2″][vc_column_text]<\/p>\n

L<\/h2>\n

[\/vc_column_text][\/vc_column_inner][vc_column_inner width=”1\/2″][vc_btn title=”Voltar ao topo” style=”flat” shape=”round” color=”green” size=”sm” align=”right” link=”url:%23page|||”][\/vc_column_inner][\/vc_row_inner][vc_tta_accordion style=”flat” shape=”square” spacing=”10″ active_section=”1000″ css_animation=”none” no_fill=”true” collapsible_all=”true”][vc_tta_section title=”Lead investor” tab_id=”1553795637195-bba17d8d-5a1b”][vc_column_text]An entity or individual that deploys the largest individual investment in a given round of funding for a company. As the primary financier for the round, the lead investor determines the current valuation of the company and typically the majority of the relevant terms of the financing.[\/vc_column_text][\/vc_tta_section][vc_tta_section title=”License Agreement” tab_id=”1553881936546-351dd84c-67da”][vc_column_text]An agreement by which a company grants another the right to use certain know-how and\/or to exploit industrial property rights in exchange for payment, usually through royalties.[\/vc_column_text][\/vc_tta_section][vc_tta_section title=”Limited Partner (LP)” tab_id=”1553881977680-7f76fd84-96ce”][vc_column_text]A limited partner (or LP) is a third-party investor in an investment fund.[\/vc_column_text][\/vc_tta_section][vc_tta_section title=”Lock-Up” tab_id=”1553882011626-7f70a5b1-430a”][vc_column_text]A lock-up is a period of time when investors in a company are not allowed to redeem or sell shares.[\/vc_column_text][\/vc_tta_section][vc_tta_section title=”Liquidation Preference” tab_id=”1553882046824-9326dd18-6abf”][vc_column_text]Liquidation preference establishes that certain investors receive their investment money back first before other company owners in the event the company is sold or has another liquidation (payout) event to shareholders.[\/vc_column_text][\/vc_tta_section][vc_tta_section title=”Liquidity Event” tab_id=”1553882048705-a7686215-1140″][vc_column_text]The process of selling equity or strategic assets that generate inbound cash-flow that can be used to fund new investments and\/or return capital to partners.[\/vc_column_text][\/vc_tta_section][vc_tta_section title=”Liquidation” tab_id=”1553882050962-3609f7d3-3db4″][vc_column_text]The process of selling assets in order to pay creditors (and potentially shareholders) followed by closing the company[\/vc_column_text][\/vc_tta_section][\/vc_tta_accordion][\/vc_column][\/vc_row][vc_row el_id=”M” lg_spacing=”padding_top:120″][vc_column][vc_row_inner][vc_column_inner width=”1\/2″][vc_column_text]<\/p>\n

M<\/h2>\n

[\/vc_column_text][\/vc_column_inner][vc_column_inner width=”1\/2″][vc_btn title=”Voltar ao topo” style=”flat” shape=”round” color=”green” size=”sm” align=”right” link=”url:%23page|||”][\/vc_column_inner][\/vc_row_inner][vc_tta_accordion style=”flat” shape=”square” spacing=”10″ active_section=”1000″ css_animation=”none” no_fill=”true” collapsible_all=”true”][vc_tta_section title=”Market Niche” tab_id=”1553795722144-fcbafbea-4ff5″][vc_column_text]Small market segment made up of a perfectly identifiable group of consumers with a homogeneous profile.[\/vc_column_text][\/vc_tta_section][vc_tta_section title=”Market Potential” tab_id=”1553795808092-cc8d93e7-0fac”][vc_column_text]The overall amount that the total group of potential customers is willing to pay for the product\/service at any given time.[\/vc_column_text][\/vc_tta_section][vc_tta_section title=”Market Segment” tab_id=”1553795806224-a924a9d2-ceef”][vc_column_text]Group of individuals with similar needs and preferences in terms of consumption and purchase profile.[\/vc_column_text][\/vc_tta_section][vc_tta_section title=”Market Share” tab_id=”1553795805132-bf71f1e5-8901″][vc_column_text]Percentage or quota of the market that a company or product\/service has, calculated by dividing the sales of the product\/service by the total Market size.[\/vc_column_text][\/vc_tta_section][vc_tta_section title=”MBO (Managment Buy-Out)” tab_id=”1553795721518-22ba5b47-4327″][vc_column_text]Acquisition of a company by its management, supported by external financing.[\/vc_column_text][\/vc_tta_section][vc_tta_section title=”Meetup” tab_id=”1553795803940-97d51a76-4bd1″][vc_column_text]An informal meeting to promote the exchange of ideas between multiple players in the business scene, from CEOs to programmers, investors, mentors.[\/vc_column_text][\/vc_tta_section][vc_tta_section title=”Mentor” tab_id=”1553795801658-d2d7f488-079b”][vc_column_text]A business advisor. Has a key role in the validation process, start or development of a start-up, when the entrepreneurs need it most. They are also well-known individuals at events and start-ups competitions, advising new entrepreneurs on the development of ideas and their business model. Having a good mentor can make all the difference in an entrepreneur’s success.[\/vc_column_text][\/vc_tta_section][vc_tta_section title=”Mergers and Acquisitions (M&A)” tab_id=”1554023299293-27fda29e-873e”][vc_column_text]M&A are transactions in which the ownership of companies or their operating units are transferred or consolidated with other entities. While a merger is a legal consolidation of two entities into one entity, an acquisition occurs when one entity takes ownership of another entity’s stock, equity interests or assets, even though both are transactions generally result in the consolidation of assets and liabilities under one entity.[\/vc_column_text][\/vc_tta_section][vc_tta_section title=”Mezzanine financing” tab_id=”1554023298238-8c532427-ed88″][vc_column_text]A form of Debt financing, but it also includes embedded equity instruments or options.[\/vc_column_text][\/vc_tta_section][vc_tta_section title=”Minimum Viable Product (MVP)” tab_id=”1554023287815-659a582b-57d6″][vc_column_text]Consists of a simpler version of a product\/service, created with minimal effort and resources, used to test and validate the business.[\/vc_column_text][\/vc_tta_section][\/vc_tta_accordion][\/vc_column][\/vc_row][vc_row el_id=”N” lg_spacing=”padding_top:120″][vc_column][vc_row_inner][vc_column_inner width=”1\/2″][vc_column_text]<\/p>\n

N<\/h2>\n

[\/vc_column_text][\/vc_column_inner][vc_column_inner width=”1\/2″][vc_btn title=”Voltar ao topo” style=”flat” shape=”round” color=”green” size=”sm” align=”right” link=”url:%23page|||”][\/vc_column_inner][\/vc_row_inner][vc_tta_accordion style=”flat” shape=”square” spacing=”10″ active_section=”1000″ css_animation=”none” no_fill=”true” collapsible_all=”true”][vc_tta_section title=”NDA (Non-Disclosure Agreement)” tab_id=”1553795954155-b567d31f-c1db”][vc_column_text]An agreement between two parties to protect sensitive or confidential information, such as trade secrets, from being disclosed to third parties.[\/vc_column_text][\/vc_tta_section][vc_tta_section title=”Networking” tab_id=”1553795954787-5e970c6d-633b”][vc_column_text]A group of relations between contacts. Expanding it is a fundamental exercise for any new entrepreneur who wants to make their project be market aware.[\/vc_column_text][\/vc_tta_section][\/vc_tta_accordion][\/vc_column][\/vc_row][vc_row el_id=”P” lg_spacing=”padding_top:120″][vc_column][vc_row_inner][vc_column_inner width=”1\/2″][vc_column_text]<\/p>\n

P<\/h2>\n

[\/vc_column_text][\/vc_column_inner][vc_column_inner width=”1\/2″][vc_btn title=”Voltar ao topo” style=”flat” shape=”round” color=”green” size=”sm” align=”right” link=”url:%23page|||”][\/vc_column_inner][\/vc_row_inner][vc_tta_accordion style=”flat” shape=”square” spacing=”10″ active_section=”1000″ css_animation=”none” no_fill=”true” collapsible_all=”true”][vc_tta_section title=”Pari Passu” tab_id=”1553796485010-861aa8cf-bd7a”][vc_column_text]A Latin term that means \u201cof equal step\u201d, \u201csimultaneously\u201d, \u201cequal footing\u201d, \u201cat the same time\u201d, in financial terms, in equal standing, where all parties are treated in the same manner. For example, when stated that \u201cinvestors shall receive\/pay pari passu\u201d, it means that they will receive\/pay in proportion to their investment and all at the same time.[\/vc_column_text][\/vc_tta_section][vc_tta_section title=”Pitch (Elevator Pitch)” tab_id=”1553796656105-fd833021-a4dc”][vc_column_text]Summary communication, usually 3 to 5 minutes, of a value proposition of a business idea growth path and potential, with the purpose of finding a potential investor or partner.[\/vc_column_text][\/vc_tta_section][vc_tta_section title=”Pivot” tab_id=”1553796654406-295c7ab2-8399″][vc_column_text]Pivot, or pivoting, means to redirect\/explore the company’s business model\/strategy to alternative and potentially more profitable markets\/segments. Typically the company may keep addressing the past market\/segment while the new strategy does not proves its success[\/vc_column_text][\/vc_tta_section][vc_tta_section title=”Portfolio company” tab_id=”1553796485957-60238185-02cc”][vc_column_text]A company that has received an equity investment from a specific Venture Capital or a Private Equity firm.[\/vc_column_text][\/vc_tta_section][vc_tta_section title=”Positioning” tab_id=”1553796657312-c7077eb1-4f91″][vc_column_text]The act of developing the offer and the brand of the company to take a prominent place in the minds of the target-customers.[\/vc_column_text][\/vc_tta_section][vc_tta_section title=”Pre-\/post-money valuation” tab_id=”1553796744038-c7ba51f7-62bc”][vc_column_text]Pre-money valuation refers to the value investors perceived accrued at the company immediately before they add their capital infusion;\u00a0Post-money valuation is how much the company is valued after the capital infusion and typically is the sum of the pre-money valuation and the capital infusion. Most references are to a company’s post-money valuation. Naturally Pre-money can be determined by subtracting the capital infusion amount from the post money valuation.[\/vc_column_text][\/vc_tta_section][vc_tta_section title=”Product-market fit” tab_id=”1553796742803-bda1dcac-5c26″][vc_column_text]A market demonstration that there is perceived value and acceptance to buy by potential customers to the product\/service provided by the company.[\/vc_column_text][\/vc_tta_section][vc_tta_section title=”Profit and Loss Account” tab_id=”1553796741594-11e4935b-10bf”][vc_column_text]An accounting document that shows the results (profits or losses) obtained by a company in a specific period.[\/vc_column_text][\/vc_tta_section][vc_tta_section title=”Proof of concept” tab_id=”1553796739572-57d9150e-afd5″][vc_column_text]A demonstration of the technical feasibility of a concept or idea that a startup is based on.[\/vc_column_text][\/vc_tta_section][vc_tta_section title=”Pro rata rights” tab_id=”1554023743171-e4cf99ef-2ebe”][vc_column_text]Pro rata is from the Latin ‘in proportion.’ A Venture Capitalist with supra pro rata rights gives it the option of increasing its ownership of a company in subsequent rounds of funding.[\/vc_column_text][\/vc_tta_section][\/vc_tta_accordion][\/vc_column][\/vc_row][vc_row el_id=”Q” lg_spacing=”padding_top:120″][vc_column][vc_row_inner][vc_column_inner width=”1\/2″][vc_column_text]<\/p>\n

Q<\/h2>\n

[\/vc_column_text][\/vc_column_inner][vc_column_inner width=”1\/2″][vc_btn title=”Voltar ao topo” style=”flat” shape=”round” color=”green” size=”sm” align=”right” link=”url:%23page|||”][\/vc_column_inner][\/vc_row_inner][vc_tta_accordion style=”flat” shape=”square” spacing=”10″ active_section=”1000″ css_animation=”none” no_fill=”true” collapsible_all=”true”][vc_tta_section title=”Quasi-Equity Investment” tab_id=”1553796929707-8ef6386a-8c53″][vc_column_text]Type of financing classified not as pure equity capital or debt, with a greater risk than senior debt and a risk that is lower than ordinary capital, where the return for the holder is predominately linked to the profit or loss of the undertaking target-company, which is not guaranteed in the event of default. The quasi-equity investments may be structured as a debt, unsecured and unsubordinated, including mezzanine debt and, in some cases, convertible into equity, or as preferred equity.[\/vc_column_text][\/vc_tta_section][\/vc_tta_accordion][\/vc_column][\/vc_row][vc_row el_id=”R” lg_spacing=”padding_top:120″][vc_column][vc_row_inner][vc_column_inner width=”1\/2″][vc_column_text]<\/p>\n

R<\/h2>\n

[\/vc_column_text][\/vc_column_inner][vc_column_inner width=”1\/2″][vc_btn title=”Voltar ao topo” style=”flat” shape=”round” color=”green” size=”sm” align=”right” link=”url:%23page|||”][\/vc_column_inner][\/vc_row_inner][vc_tta_accordion style=”flat” shape=”square” spacing=”10″ active_section=”1000″ css_animation=”none” no_fill=”true” collapsible_all=”true”][vc_tta_section title=”Recapitalization” tab_id=”1553797013284-e447881e-6bcf”][vc_column_text]A corporate reorganization of a company’s capital structure, changing the mix of equity and debt. A company will usually recapitalize to prepare for an exit, lower taxes, or defend against a takeover or reshape the relative balance of ownership and individual returns among shareholders.[\/vc_column_text][\/vc_tta_section][vc_tta_section title=”Return on Investment (ROI)” tab_id=”1553797014006-2d882e30-6081″][vc_column_text]The profit or loss resulting from an investment transaction as a percentage of the original investment, usually expressed on an annualized basis.[\/vc_column_text][\/vc_tta_section][vc_tta_section title=”Revenue Multiple” tab_id=”1553797090539-cbd82107-3468″][vc_column_text]The enterprise-value-to-revenue multiple (EV\/R) is a measure of the value of a comparable stock and uses it to determine a reference value to a company’s enterprise value based on its revenue.[\/vc_column_text][\/vc_tta_section][vc_tta_section title=”Round” tab_id=”1553797085601-6bf7d359-84d7″][vc_column_text]Long term cash infusion into a company as Equity. Following seed capital, typically the companies move on to the first round, Round A, then on to Round B, and so on. There may be a multitude of rounds of investment during the course of the start-up.[\/vc_column_text][\/vc_tta_section][\/vc_tta_accordion][\/vc_column][\/vc_row][vc_row el_id=”S” lg_spacing=”padding_top:120″][vc_column][vc_row_inner][vc_column_inner width=”1\/2″][vc_column_text]<\/p>\n

S<\/h2>\n

[\/vc_column_text][\/vc_column_inner][vc_column_inner width=”1\/2″][vc_btn title=”Voltar ao topo” style=”flat” shape=”round” color=”green” size=”sm” align=”right” link=”url:%23page|||”][\/vc_column_inner][\/vc_row_inner][vc_tta_accordion style=”flat” shape=”square” spacing=”10″ active_section=”1000″ css_animation=”none” no_fill=”true” collapsible_all=”true”][vc_tta_section title=”Software as a Service (SaaS)” tab_id=”1553797260274-a9274a29-652f”][vc_column_text]A software product that is hosted remotely, usually provided over the Internet (also known as “in the cloud”) that the customer pays a regular time-linked fee for using (not acquiring) \u2013 that can be terminated remotely in case of cease payment or contract termination (hence being a service like business model however with a scalable profile).[\/vc_column_text][\/vc_tta_section][vc_tta_section title=”Sector” tab_id=”1553797340224-d44af784-27ad”][vc_column_text]The market that a startup companies product or service fits into. Examples include: consumer technology, cleantech, biotech, and enterprise technology.[\/vc_column_text][\/vc_tta_section][vc_tta_section title=”Seed Capital” tab_id=”1553797348589-d8891bf4-0030″][vc_column_text]The amount that is raised when a business is still in its initial stage, in order to take its first steps in the market. At this stage, there are seed rounds, the initial rounds of investment, to raise the first external cash for the start-up (seed money).[\/vc_column_text][\/vc_tta_section][vc_tta_section title=”Seed Capital Financing” tab_id=”1553797261056-d7e070f1-a5e6″][vc_column_text]Financing for research and development of the initial concept and finalise proof of concept, before the business has reached the Early Stage.[\/vc_column_text][\/vc_tta_section][vc_tta_section title=”Seed Stage” tab_id=”1553797346839-d231a5d4-0aeb”][vc_column_text]The stage prior to the official start of the company, where the initial concept of the product\/service is defined and starts being developed.[\/vc_column_text][\/vc_tta_section][vc_tta_section title=”Series” tab_id=”1553797343107-e596e3a9-17fb”][vc_column_text]Refers to the specific round of financing a company is raising. Venture rounds that typically occur around certain milestones: a Series A round is raised after a seed investment has taken a company as far as it can go; a Series B may be when the company is reaching close to profitability but needs capital for hiring\/development needs; Series C and D+ rounds are commonly known as late-stage rounds, and generally fall into the time when a company has a defined business model that has taken hold, is making significant revenues and is looking to expand at a large scale.[\/vc_column_text][\/vc_tta_section][vc_tta_section title=”Senior Debt” tab_id=”1553797335918-c1ac566a-2760″][vc_column_text]Debt that takes priority over other debt securities in the event of liquidation.[\/vc_column_text][\/vc_tta_section][vc_tta_section title=”Spin-off” tab_id=”1553797333659-49bd5213-f452″][vc_column_text]Creation of a new independent company, with innovative products or services, initially generated from a project in an already existing company (known as parent company).[\/vc_column_text][\/vc_tta_section][vc_tta_section title=”Stage” tab_id=”1553797332764-f41e1be1-5ad0″][vc_column_text]The stage of development a company is in. There is no explicit rule for what defines each stage of a company, but it tend to be categorized as early stage, mid-stage and late stage.[\/vc_column_text][\/vc_tta_section][vc_tta_section title=”Start-up” tab_id=”1553797331540-78987d31-625d”][vc_column_text]A start-up is a new company, or even one in the embryonic stage or still being constituted, which has promising projects linked to research and development of innovative ideas. There is a high risk involved in the business. However, despite this, they are ventures with low initial costs and are highly scalable, in other words, they have high growth potential when things go well. Eric Ries, author of\u00a0Lean Startup<\/em>, defines a start-up as \u201ca group of people in search of a repeatable and scalable business model, working under conditions of extreme uncertainty”.[\/vc_column_text][\/vc_tta_section][vc_tta_section title=”Start-up Stage” tab_id=”1553797322633-78c0566d-bed7″][vc_column_text]When the company starts and it begins to develop its products\/services for commercialization.[\/vc_column_text][\/vc_tta_section][vc_tta_section title=”Stock Option” tab_id=”1553797345050-7ecd1cdd-a57d”][vc_column_text]Stock options are sold or granted by one party to another, that give the option buyer the right, but not the obligation, to buy or sell a stock at an agreed-upon price within a certain period of time.[\/vc_column_text][\/vc_tta_section][vc_tta_section title=”Syndication” tab_id=”1553797350117-44fbd9b3-bb9c”][vc_column_text]A syndication is an alliance formed for the purpose of investing in a large transaction that would be hard or impossible for the entities involved to do individually or they prefer to do combinedly allowing them to pool their resources and share risks.[\/vc_column_text][\/vc_tta_section][\/vc_tta_accordion][\/vc_column][\/vc_row][vc_row el_id=”T” lg_spacing=”padding_top:120″][vc_column][vc_row_inner][vc_column_inner width=”1\/2″][vc_column_text]<\/p>\n

T<\/h2>\n

[\/vc_column_text][\/vc_column_inner][vc_column_inner width=”1\/2″][vc_btn title=”Voltar ao topo” style=”flat” shape=”round” color=”green” size=”sm” align=”right” link=”url:%23page|||”][\/vc_column_inner][\/vc_row_inner][vc_tta_accordion style=”flat” shape=”square” spacing=”10″ active_section=”1000″ css_animation=”none” no_fill=”true” collapsible_all=”true”][vc_tta_section title=”Tag Along” tab_id=”1553797766809-479b75e7-b40d”][vc_column_text]The option afforded to the non-selling shareholder(s) to compel the selling shareholder(s) to jointly sell their shares together with those of the selling shareholder(s) to a third party.[\/vc_column_text][\/vc_tta_section][vc_tta_section title=”Tangible assets” tab_id=”1594822377375-6ad423b7-75f4″][vc_column_text]Assets consisting of land, buildings and plants, machinery and equipment.[\/vc_column_text][\/vc_tta_section][vc_tta_section title=”Target Market” tab_id=”1554024399354-241069af-afb5″][vc_column_text]A group of consumers to whom the company decides to direct their products, services or ideas with a strategy aimed at meeting needs and preferences.[\/vc_column_text][\/vc_tta_section][vc_tta_section title=”Term Sheet” tab_id=”1553797848243-eaa23801-2a72″][vc_column_text]A non-binding agreement that outlines the major aspects of an investment to be made in a company. A term sheet sets the groundwork for building out detailed legal documents.[\/vc_column_text][\/vc_tta_section][vc_tta_section title=”Traction” tab_id=”1553797846121-9aaba592-aaf3″][vc_column_text]Quantitative evidence of market demand. It is proof that the product or service is necessary and can be expressed, as appropriate, using different metrics (revenues, margins, active members, registered users, traffic).[\/vc_column_text][\/vc_tta_section][vc_tta_section title=”Tranche” tab_id=”1553797767645-ca4f446b-a764″][vc_column_text]A portion of an investment more commonly seen\/used in venture rounds. In many agreements (especially in healthcare), a second portion\/tranche\/instalment of a round is made upon specified milestones, such as regulatory approval. Every tranche or instalment of a round will be part of the same round.[\/vc_column_text][\/vc_tta_section][vc_tta_section title=”Turnaround” tab_id=”1554024522660-ee8ebfba-0db5″][vc_column_text]A turnaround is the financial recovery of a company that has been performing poorly for an extended time.<\/b>[\/vc_column_text][\/vc_tta_section][\/vc_tta_accordion][\/vc_column][\/vc_row][vc_row el_id=”U” lg_spacing=”padding_top:120″][vc_column][vc_row_inner][vc_column_inner width=”1\/2″][vc_column_text]<\/p>\n

U<\/h2>\n

[\/vc_column_text][\/vc_column_inner][vc_column_inner width=”1\/2″][vc_btn title=”Voltar ao topo” style=”flat” shape=”round” color=”green” size=”sm” align=”right” link=”url:%23page|||”][\/vc_column_inner][\/vc_row_inner][vc_tta_accordion style=”flat” shape=”square” spacing=”10″ active_section=”1000″ css_animation=”none” no_fill=”true” collapsible_all=”true”][vc_tta_section title=”Unicorns” tab_id=”1553797953192-d5c41199-ba75″][vc_column_text]Start-ups with a valuation of over one billion Dollars[\/vc_column_text][\/vc_tta_section][\/vc_tta_accordion][\/vc_column][\/vc_row][vc_row el_id=”V” lg_spacing=”padding_top:120″][vc_column][vc_row_inner][vc_column_inner width=”1\/2″][vc_column_text]<\/p>\n

V<\/h2>\n

[\/vc_column_text][\/vc_column_inner][vc_column_inner width=”1\/2″][vc_btn title=”Voltar ao topo” style=”flat” shape=”round” color=”green” size=”sm” align=”right” link=”url:%23page|||”][\/vc_column_inner][\/vc_row_inner][vc_tta_accordion style=”flat” shape=”square” spacing=”10″ active_section=”1000″ css_animation=”none” no_fill=”true” collapsible_all=”true”][vc_tta_section title=”Valuation” tab_id=”1553777363683-48b8955a-8874″][vc_column_text]The accrued perceived amount of value a company has to any specific third party(or parties) that is (are) acquiring an specific equity stake that is generally accepted by current equity holders to allow an exit transaction to be executed.[\/vc_column_text][\/vc_tta_section][vc_tta_section title=”Value Chain” tab_id=”1553777421232-c7b922ab-98c4″][vc_column_text]A set of individual contributions (value added) by different stakeholders in an industry to the resulting service\/product in the creation of the total value of such service\/product for the final recipient\/user\/customer.[\/vc_column_text][\/vc_tta_section][vc_tta_section title=”Value Proposition of the Business” tab_id=”1553798080041-7c4cf7db-d32d”][vc_column_text]Value perceived by the customers or potential customers related to a differentiated product\/service that addresses a problem and satisfies an identified need. May be applied to an organisation or just to some products\/services, defined through the identification and creation of benefits offered to the clients or potential clients, which determines its value positioning in relation to the competition or potential competitors and it relevance in the Value Chain[\/vc_column_text][\/vc_tta_section][vc_tta_section title=”Venture Capital” tab_id=”1553798082367-527c273b-74aa”][vc_column_text]Funds to support differentiating early stage companies with growth potential competing in the global market of high growth\/significant markets.[\/vc_column_text][\/vc_tta_section][vc_tta_section title=”Venture Capital Firms” tab_id=”1554024708606-729a7673-4738″][vc_column_text]Financial operators which manage Venture Capital Funds.[\/vc_column_text][\/vc_tta_section][vc_tta_section title=”Venture Capital Funds (VCF)” tab_id=”1554024707733-f42fabfd-eb87″][vc_column_text]Fund created to make Venture Capital investments.[\/vc_column_text][\/vc_tta_section][vc_tta_section title=”Venture Capital Investment” tab_id=”1554024706710-18e5f84b-c56d”][vc_column_text]Venture capital investment is considered the acquisition, for a limited period of time, of equity instruments and instruments of borrowed capital in companies with high growth potential, as a means to benefit from the respective valorisation.[\/vc_column_text][\/vc_tta_section][vc_tta_section title=”Vesting” tab_id=”1554024696469-e330be0d-1b4f”][vc_column_text]Period in which an employee of a company can be granted rights to stock options and contributions provided by the employer. The rights typically gain value (vest) over time until they reach their full value after a pre-determined amount of time. For example, if an employee was offered 200 stock unites over 10 years, 20 units would vest each year. This gives employees an incentive to perform well and stay with the company for a longer period of time.[\/vc_column_text][\/vc_tta_section][\/vc_tta_accordion][\/vc_column][\/vc_row][vc_row el_id=”W” lg_spacing=”padding_top:120″][vc_column][vc_row_inner][vc_column_inner width=”1\/2″][vc_column_text]<\/p>\n

W<\/h2>\n

[\/vc_column_text][\/vc_column_inner][vc_column_inner width=”1\/2″][vc_btn title=”Voltar ao topo” style=”flat” shape=”round” color=”green” size=”sm” align=”right” link=”url:%23page|||”][\/vc_column_inner][\/vc_row_inner][vc_tta_accordion style=”flat” shape=”square” spacing=”10″ active_section=”1000″ css_animation=”none” no_fill=”true” collapsible_all=”true”][vc_tta_section title=”Walkway” tab_id=”1554024903744-c55e90ef-882c”][vc_column_text]Contigent provision in a financial contract that allows one of the parties in accordance with its terms to terminate its rights and obligations stated in the contract or implicit in the investment.[\/vc_column_text][\/vc_tta_section][vc_tta_section title=”Working Capital” tab_id=”1554024903995-d0570130-4828″][vc_column_text]Difference between the current assets and the short-term liabilities of a company.[\/vc_column_text][\/vc_tta_section][\/vc_tta_accordion][\/vc_column][\/vc_row]<\/p>\n<\/div>","protected":false},"excerpt":{"rendered":"

[vc_row custom_border_color=”#dddddd” border_style=”dashed” lg_spacing=”border_top:1;border_bottom:1;padding_top:20;padding_bottom:20″ el_id=”glossary-filter”][vc_column][vc_column_text] 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 [\/vc_column_text][\/vc_column][\/vc_row][vc_row el_id=”A” lg_spacing=”padding_top:50″][vc_column][vc_row_inner][vc_column_inner width=”1\/2″][vc_column_text] A [\/vc_column_text][\/vc_column_inner][vc_column_inner width=”1\/2″][vc_btn title=”Voltar ao topo” style=”flat” shape=”round” color=”green” size=”sm” align=”right” link=”url:%23page|||”][\/vc_column_inner][\/vc_row_inner][vc_tta_accordion style=”flat” shape=”square” spacing=”10″ active_section=”1000″ css_animation=”none” no_fill=”true” collapsible_all=”true”][vc_tta_section title=”Accelerator” tab_id=”1553536288411-8f342b6a-b1831553775458298″][vc_column_text]A\u00a0program that startups can apply to that\u00a0provides mentorship, most times for a chunk of equity, in an effort to help the company grow. Most accelerators are geared towards helping early-stage companies preparing for Venture Capital funding.[\/vc_column_text][\/vc_tta_section][vc_tta_section title=”Anti-Dilution Protection” tab_id=”1594822283864-c6272251-5cb3″][vc_column_text]\u00a0The option afforded to holders of shares that carry special rights to maintain the economic value of their shares whenever a new increase in the share capital of the company takes place.[\/vc_column_text][\/vc_tta_section][\/vc_tta_accordion][\/vc_column][\/vc_row][vc_row el_id=”B” lg_spacing=”padding_top:120″][vc_column][vc_row_inner][vc_column_inner width=”1\/2″][vc_column_text] B [\/vc_column_text][\/vc_column_inner][vc_column_inner width=”1\/2″][vc_btn title=”Voltar ao topo” style=”flat” shape=”round” color=”green” size=”sm” align=”right” link=”url:%23page|||”][\/vc_column_inner][\/vc_row_inner][vc_tta_accordion style=”flat” shape=”square” spacing=”10″ active_section=”1000″ css_animation=”none” no_fill=”true” collapsible_all=”true”][vc_tta_section title=”Balance Sheet” tab_id=”1553775625406-8a4cc6d3-5f7c”][vc_column_text]An accounting document that reflects the financial situation of a company at a given point in time, recording what is owns and its rights (assets), equity capital, and its obligations to third parties (liabilities).[\/vc_column_text][\/vc_tta_section][vc_tta_section title=”Barriers to Entry” tab_id=”1553775866969-d3e680a1-b6dd”][vc_column_text]Hurdles that companies face when entering a given market as newcomers to such market, typically generated by established companies. Barriers to entry include, for example, brands, patents, exclusive rights to a distribution channel, large investments required to get established.[\/vc_column_text][\/vc_tta_section][vc_tta_section title=”Barriers to Exit” tab_id=”1553792920039-e5608c51-c2be”][vc_column_text]Difficulty in leaving the industry when there are low or even negative returns. For example, industries that require investment in specialised assets tend to have greater barriers to exit.[\/vc_column_text][\/vc_tta_section][vc_tta_section title=”Benchmark” tab_id=”1553792919519-7ad80338-600d”][vc_column_text]A market reference and process by which a company compares and measures its current relative status. An investor references a company’s growth by determining whether or not they have met certain benchmarks, ie, market references. For example, company A has met the benchmark of having X amount of recurring revenue after 2 years in the market.[\/vc_column_text][\/vc_tta_section][vc_tta_section title=”Bootstrap” tab_id=”1553792919055-dd23c675-fc4a”][vc_column_text]The creation of a business funded exclusively by the entrepreneur’s direct resources or the company’s business revenue.[\/vc_column_text][\/vc_tta_section][vc_tta_section title=”Board of directors” tab_id=”1553793114013-462a1f19-f3af”][vc_column_text]A group of individuals, elected by stockholders, chosen to oversee and general manager the affairs of a company. A board typically includes investors and independent members with industry high profile and track record. Not all startups have a board, but investors typically require a board seat after investing.[\/vc_column_text][\/vc_tta_section][vc_tta_section title=”Breakeven (critical point)” tab_id=”1553793118952-874f9835-c928″][vc_column_text]Point from which the company begins to generate positive operating results. The lower the critical point of a company, the easier it will be for the company to reach it and the lower its economic risk.[\/vc_column_text][\/vc_tta_section][vc_tta_section title=”Bridge loan” tab_id=”1553793113277-1e104efa-9ed2″][vc_column_text]Short-term loan that serves as a \u201cbridge\u201d financing prior to a long-term debt or equity investment can be assured.[\/vc_column_text][\/vc_tta_section][vc_tta_section title=”Budget” tab_id=”1553793235961-a090c2eb-4412″][vc_column_text]Regular forecast, usually annual, prepared by a company, that includes the expected and reference financials for that period, including variable costs, revenues, expenses, investment and sources of funding.[\/vc_column_text][\/vc_tta_section][vc_tta_section title=”Burn rate” tab_id=”1553793237691-72eeac9a-322a”][vc_column_text]A time-based metric reflecting how much cash it consumes on any given time-frame. Burn rates are typically calculated over annual or monthly periods, and in some cases can be calculated on a weekly or daily basis.[\/vc_column_text][\/vc_tta_section][vc_tta_section title=”Business Angels (BA)” tab_id=”1553879635469-31521183-0b5d”][vc_column_text]Individual investor who directly invests its own money typically in companies in the seed or start-up stage. BAs make their own investment decisions and are financially independent, in other words, a possible total loss of their investments will not significantly change the economic situation of their assets. Some BAs, in addition to investing, also monitor and provide strategic support to entrepreneurs. They are also known as Informal Venture Capital Investors.[\/vc_column_text][\/vc_tta_section][vc_tta_section title=”Business Model” tab_id=”1553879734898-9b251e89-9bfc”][vc_column_text]The structured process in which the company is going to create value, deliver it to its clients and generate income in the process.[\/vc_column_text][\/vc_tta_section][vc_tta_section title=”Business to business (B2B)” tab_id=”1553879790274-36b5039b-e44a”][vc_column_text]A business that is targeting another business with its product or services. B2B technology is also sometimes referred to as enterprise technology. This is different from B2C which stands for business to consumer, and involves selling products or services directly to end-users consumers.[\/vc_column_text][\/vc_tta_section][\/vc_tta_accordion][\/vc_column][\/vc_row][vc_row el_id=”C” lg_spacing=”padding_top:120″][vc_column][vc_row_inner][vc_column_inner width=”1\/2″][vc_column_text] C [\/vc_column_text][\/vc_column_inner][vc_column_inner width=”1\/2″][vc_btn title=”Voltar ao topo” style=”flat” shape=”round” color=”green” size=”sm” align=”right” link=”url:%23page|||”][\/vc_column_inner][\/vc_row_inner][vc_tta_accordion style=”flat” shape=”square” spacing=”10″ active_section=”1000″ css_animation=”none” no_fill=”true” collapsible_all=”true”][vc_tta_section title=”Cap Table” tab_id=”1553793365474-7c7857c6-2e5a”][vc_column_text]A\u00a0capitalization table\u00a0(or cap table) is a table providing a break-down of a company’s percentages of ownership, equity dilution, and value of equity in each round of investment by founders, investors, and other equity investors.[\/vc_column_text][\/vc_tta_section][vc_tta_section title=”Capital” tab_id=”1553793444324-b7367763-7109″][vc_column_text]Financial resources currently available for investment of funding operations. Entrepreneurs raise capital to start a company and continue raising capital to fuel growth.[\/vc_column_text][\/vc_tta_section][vc_tta_section title=”Capital Under Management” tab_id=”1553793549477-a1ae19a2-3e7d”][vc_column_text]Refers to the total\u00a0capital which the VC\u00a0manages on behalf of its own investors and themselves.[\/vc_column_text][\/vc_tta_section][vc_tta_section title=”Capped notes” tab_id=”1553793531421-02c04afb-9790″][vc_column_text]Refers to a top level limit placed on investor notes in a round of financing. An example is when Entrepreneurs and investors agree to place a \u201ccap\u201d on the valuation of the company when notes can be converted into equity. This means investors will own a certain percentage of a company relative to that cap when the company raises another round of funding if the round is priced higher that such cap. Uncapped rounds are generally more favorable to the entrepreneurs. For the absence of doubt, the Entrepreneurs should be away that the cap is not typically the only pricing reference on a convertible note.[\/vc_column_text][\/vc_tta_section][vc_tta_section title=”Cash Flow” tab_id=”1553793627467-6d96194d-cc8b”][vc_column_text]Amount of cash that is collected and deployed from and to third parties by a business during a given period.[\/vc_column_text][\/vc_tta_section][vc_tta_section title=”Closing” tab_id=”1553793541178-ee6ed5fe-b88a”][vc_column_text]Refers to the process of completing all tasks and terms on the initial drafting of a contract in order for a contract to be signed and put in force.[\/vc_column_text][\/vc_tta_section][vc_tta_section title=”Co-creation” tab_id=”1553793539514-6f46e820-74da”][vc_column_text]Development process of a solution, in which all interested parties are invited to play an active role, in an equal and reciprocal relationship.[\/vc_column_text][\/vc_tta_section][vc_tta_section title=”Competitive Advantage” tab_id=”1553793537948-c5f8dc74-e047″][vc_column_text]The advantage a company has over its competitors, generating a differentiation and\/or superior value creation, perception and performance than the alternatives.[\/vc_column_text][\/vc_tta_section][vc_tta_section title=”Competition” tab_id=”1553880232999-de63a3e2-b0bc”][vc_column_text]Direct: Competition between two companies that sell the same product\/service in the […]<\/p>\n","protected":false},"author":2,"featured_media":0,"parent":7508,"menu_order":98,"comment_status":"closed","ping_status":"closed","template":"","meta":{"_acf_changed":false,"footnotes":""},"class_list":["post-6591","page","type-page","status-publish","hentry"],"acf":[],"aioseo_notices":[],"_links":{"self":[{"href":"https:\/\/www.portugalventures.pt\/en\/wp-json\/wp\/v2\/pages\/6591","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.portugalventures.pt\/en\/wp-json\/wp\/v2\/pages"}],"about":[{"href":"https:\/\/www.portugalventures.pt\/en\/wp-json\/wp\/v2\/types\/page"}],"author":[{"embeddable":true,"href":"https:\/\/www.portugalventures.pt\/en\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.portugalventures.pt\/en\/wp-json\/wp\/v2\/comments?post=6591"}],"version-history":[{"count":0,"href":"https:\/\/www.portugalventures.pt\/en\/wp-json\/wp\/v2\/pages\/6591\/revisions"}],"up":[{"embeddable":true,"href":"https:\/\/www.portugalventures.pt\/en\/wp-json\/wp\/v2\/pages\/7508"}],"wp:attachment":[{"href":"https:\/\/www.portugalventures.pt\/en\/wp-json\/wp\/v2\/media?parent=6591"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}