1. Acquisition 2. Angel investor 3. Debt financing 4. Due diligence 5. Equity financing 6. Fund raising 7. General partner 8. Incubator 9. Portfolio company 10. Private placement 11. Secondary market 12. Seed capital 13. Syndication 14. Term sheet 15. Venture capital A - The process of taking over a controlling interest in another company. Acquisition also describes any deal where the bidder ends up with 50 per cent or more of the company taken over. B - The term given to early-stage investments. There is often confusion surrounding this term. Many people use the term venture capital very loosely and what they actually mean is private equity. C - Individuals who provide seed or start-up finance to entrepreneurs in return for equity. Angels usually contribute a lot more than pure cash - they often have industry knowledge and contacts that they can pass on to entrepreneurs. Angels sometimes have non-executive directorships in the companies they invest in. D - A summary sheet detailing the terms and conditions of an investment opportunity. E - This is rassing moncy for working capital or capital expenditure through some form of loan. This could be by arranging a bank loan or by selling bonds, bills or notes (forms of debt) to individuals or institutional investors, In return for lending the money, the individuals or institutions become creditors and receive a promise to repay principal plus interest on the debt. F - The sharing of deals between two or more investors, normally with one firm serving as the lead investor. Investing together allows venture capitalists to pool resources and share the risk of an investment. G - Investing successfully in private equity at a fund or company level, involves thorough investigation. As a long-term investment, it is essential to review and analyse all aspects of the deal before signing. Capabilities of the management team, performance record, deal flow, investment strategy and legals, are examples of areas that are fully examined during the due; diligence process. H - The provision of very early stage finance to a company with a business venture or idea that has not yet been established. Capital is often provided before venture capitalists become involved. However, a small number of venture capitalists do provide seed capital. I - Companies seeking to raise finance may use equity financing instead of or in addition to debt financing. To raise equity finance, a company creates new ordinary shares and sells them for cash. The new share owners become part-owners of the company and share in the risks and rewards of the company's business. J - The market for secondary buy-outs. This term should not be confused with secondaries. K - The process by which a private equity firm solicits financial commitments from limited partners for a fund. Firms typically set a target when they begin raising the fund and ultimately announce that the fund has closed at such-and-such amount. This may mean that no additional capital will be accepted. But sometimes the firms will have multiple interim closings each time they have hit particular targets (first closings, second closings, ete.) and final closings. The term cap is the maximum amount of capital a firm will accept in its fund. L - When securities are sold without a public offering, this is referred to as a private placement. Generally, this means that the stock is placed with a select number of private investors. M - This can refer to the top-ranking partners at a private equity firm as well as the firm managing the private equity fund. N - This is one of the companies backed by a private equity firm. O - An entity designed to nurture business ideas or new technologies to the point that they become attractive to venture capitalists. An incubator typically provides physical space and some or all of the services - legal, managerial, technical needed for a business idea to be developed. Private equity firms often back incubators as a way of generating early-stage investment opportunities. 1. Acquisition 2. Angel investor 3. Debt financing 4. Due diligence 5. Equity financing 6. Fund raising 7. General partner 8. Incubator 9. Portfolio company 10. Private placement 11. Secondary market 12. Seed capital 13. Syndication 14. Term sheet 15. Venture capital A - The process of taking over a controlling interest in another company. Acquisition also describes any deal where the bidder ends up with 50 per cent or more of the company taken over. B - The term given to early-stage investments. There is often confusion surrounding this term. Many people use the term venture capital very loosely and what they actually mean is private equity. C - Individuals who provide seed or start-up finance to entrepreneurs in return for equity. Angels usually contribute a lot more than pure cash - they often have industry knowledge and contacts that they can pass on to entrepreneurs. Angels sometimes have non-executive directorships in the companies they invest in. D - A summary sheet detailing the terms and conditions of an investment opportunity. E - This is rassing moncy for working capital or capital expenditure through some form of loan. This could be by arranging a bank loan or by selling bonds, bills or notes (forms of debt) to individuals or institutional investors, In return for lending the money, the individuals or institutions become creditors and receive a promise to repay principal plus interest on the debt. F - The sharing of deals between two or more investors, normally with one firm serving as the lead investor. Investing together allows venture capitalists to pool resources and share the risk of an investment. G - Investing successfully in private equity at a fund or company level, involves thorough investigation. As a long-term investment, it is essential to review and analyse all aspects of the deal before signing. Capabilities of the management team, performance record, deal flow, investment strategy and legals, are examples of areas that are fully examined during the due; diligence process. H - The provision of very early stage finance to a company with a business venture or idea that has not yet been established. Capital is often provided before venture capitalists become involved. However, a small number of venture capitalists do provide seed capital. I - Companies seeking to raise finance may use equity financing instead of or in addition to debt financing. To raise equity finance, a company creates new ordinary shares and sells them for cash. The new share owners become part-owners of the company and share in the risks and rewards of the company's business. J - The market for secondary buy-outs. This term should not be confused with secondaries. K - The process by which a private equity firm solicits financial commitments from limited partners for a fund. Firms typically set a target when they begin raising the fund and ultimately announce that the fund has closed at such-and-such amount. This may mean that no additional capital will be accepted. But sometimes the firms will have multiple interim closings each time they have hit particular targets (first closings, second closings, ete.) and final closings. The term cap is the maximum amount of capital a firm will accept in its fund. L - When securities are sold without a public offering, this is referred to as a private placement. Generally, this means that the stock is placed with a select number of private investors. M - This can refer to the top-ranking partners at a private equity firm as well as the firm managing the private equity fund. N - This is one of the companies backed by a private equity firm. O - An entity designed to nurture business ideas or new technologies to the point that they become attractive to venture capitalists. An incubator typically provides physical space and some or all of the services - legal, managerial, technical needed for a business idea to be developed. Private equity firms often back incubators as a way of generating early-stage investment opportunities