Glossary

A minority shareholder protection affording the right to include their shares in any sale of control and at the offered price.

A takedown schedule means the timing and size of the capital contributions from the limited partners of a venture fund.

Types of business combinations in which shareholders do not incur tax liabilities. There are four types-A, B, C, and D reorganizations. They differ in various ways in the amount of stock/cash that can be offered. See Internal Revenue Code Section 368.

An offer to purchase stock made directly to the shareholders. One of the more common ways hostile takeovers are implemented.

A summary of the terms the investor is prepared to accept. A non-binding outline of the principal points which the Stock Purchase Agreement and related agreements will cover in detail.

The basic principle that money can earn interest, therefore something that is worth $1 today will be worth more in the future if invested. This is also referred to as future value.

getting somewhere with customers: people are buying a company’s product, subscribing to its service, or otherwise engaging with it.

The sale of the equity share of a portfolio company to another company.

Stock issued by a company but later reacquired. It may be held in the company's treasury indefinitely, reissued to the public, or retired. Treasury stock receives no dividends and does not carry voting power while held by the company.