Glossary

Explore a curated collection of key terms and definitions commonly used in startup investing.

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Ordinary Shares

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Over-Subscription in Funding

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Participating Preference Shares

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Performance Vesting

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Persons with Significant Control

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Phantom Options

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Post-Money Valuation

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Pre-emption Rights

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Preference Shares

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Pre-Money Valuation

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Qualifying Company (SEIS/EIS)

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Qualifying Funding Round (ASA/CLN Conversion)

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Qualifying Investment (SEIS/EIS)

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Qualifying Shares(SEIS/EIS)

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Register of Members (ROM)

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Reverse Vesting

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Risk-to-Capital Condition

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Rolling Closures

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Runway (Months of Cash Left)

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SAFE (UK Variant)

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Secondary Share Sale

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Seed Enterprise Investment Scheme

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SEIS1 Form

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SEIS3 Certificate

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SEIS/EIS Compliance

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SH01 (Return of Allotment)

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SH02 (Share Split/Consolidation)

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SH08 (Change of Share Rights)

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Share Certificate

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Shareholders’ Agreement

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Share Premium Account

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Share Price

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Single vs Double Trigger Acceleration

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Social Investment Tax Relief

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Source of Funds/Wealth

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Special Purpose Vehicle for Angels

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Strike Price (Exercise Price)

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Subscription Agreement

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Syndicate

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Tag-Along Rights

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Term Sheet

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Time-Based Vesting

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Trading Requirement (SEIS/EIS)

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Treasury Shares

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UK Permanent Establishment

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Unapproved Options (Non-EMI)

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Use of Funds Test (SEIS/EIS)

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Valuation Cap

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Valuation Method

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Venture Capital Trust

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Vesting Schedule

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Voting Rights

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Warrant Coverage

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Warrants

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Working Time Requirement (EMI)

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Write-Off/Investor Loss Relief