...
We explain the most important topics in the startup vocabulary.
So it's your first time at a meetup and someone is using jargon you have never heard of before such as "due diligence", "internal rate of return", "mezzanine financing".
A selection of these topics is explained below:
#Business Angel
Business Angels not only contribute knowledge, contacts etc. to the startup, but also contribute financially. Unlike venture Capitalists, business angels aren't primarily interested in profit.
#Due Dilligence
In order to keep the risk of an investment as low as possible, an agreement is made that the investor will have the opportunity to do a detailed review and assessment of the company
#Early Stage Financing
This is about the financing during the early phase. Usually there are neither notable customers, nor any sophisticated products to speak of.
#Exit
Simply put: the sale of the startup. Exit opportunities include: sale to another company (trade sale), repurchase by the founder (buy-back), market (going public).
#Financing Rounds
Investors spread their investments over several phases. The funds are then incrementally released once each milestone has been reached.
#Going Public
(Partial) sale of the company shares on the stock exchange.
#Incubator
Also simple: STARTPLATZ. Or: initiatives that allow startups to develop business ideas further and provide the support, consulting and infrastructure required.
#IPR Intellectual Property
This includes things such as patent protection, design protection and Copyrights, which protect intellectual property.
#KTI
Is a federal innovation promotional agency, which makes the successful launch and the first steps of expansion possible by way of extensive coaching. Successful young entrepreneurs receive the KTI-Label and are connected with with potential financiers.
#Letter of Intent
The Letter of Intent sets out the main points of a future contract, for example, for the sale of shares.
#Make or Buy
"Make or buy" is a decision model in business administration, which is applicable to many areas. One must ask the question: should services be provided in-house or outsourced.
#Non Disclosure Agreement
An agreement between two negotiators, that information must be kept strictly confidential and may not be disclosed to a third party.
#Spin-Offs
If a particular department of a startup is removed, it is considered spun-off. However, such departments are only legally independent, economically. Universities designate, for example, startups arising from their research laboratories as spin-offs.
#Venture Capitalists
Professional investors or even an investment company which can make high demands on the development of startups due to their considerable financial consideration in a company. VCs mainly serve to increase the value of the company.
Stay tuned...