Adventure Capitalist - An adventure capitalist is an investor who invests in venture capital firms and helps finance their projects.
Angel Investor – An angel investor may be a firm or an individual who invests in startup companies. Angels rarely get involved in the actual management of the companies in which they invest, but they provide enough capital to bring a product to production stage.
Barriers to Entry – In practice, barriers to entry are specific plans to keep competition from poaching customers or even entering the company’s field of business.
Bootstrapping – A business is bootstrapped if it grows without taking any outside investing. VCs are often interested in investing in bootstrapped companies.
Business Plan – A business plan is often the second item requested by a potential investor. This document describes the business, its management, its growth and income potential, and the strategies involved in making the business successful. A business plan should be updated on a regular basis.
Buyout - A buyout occurs when one company either purchases another company or the controlling shares in another company. This can be part of an exit strategy.
Closing – This is the final stage before an investment is complete and funds are transferred from the VC to the company. All legal documents are completed at this time.
Due Diligence – This process is a process that a VC firm goes through in order to investigate the businesses in which they plan to invest. They use this process to verify that the company is actually what the owners claim it to be. This is also where they verify income, operations, management, and debt.
Executive Summary – An executive summary contains a brief version of the business plan. It highlights the strongest aspects of the business and its goals.
Exit Strategy – An exit strategy is usually proposed by the business receiving the investment. This shows a plan that allows investors to remove themselves, or exit, from the venture. It is also known as a liquidity event.