Venture Capital Glossary
In this VC Glossary, we translate some commonly used but still sometimes obscure venture capital jargon to plain English. Should you come across any terms you think are important but you cannot find in this list, let us know and we’ll be happy to add them. Acquisition The terms merger and acquisition mean slightly different things but often used interchangeably. When one company takes over another company and clearly establishes itself as the new owner, the transaction is called an acquisition. A merger happens when two firms, often of about the same size, agree to go forward as a single new company. M&A means Mergers and Acquisitions. ACCREDITED INVESTOR An individual or institution that meets certain wealth criteria (as defined regulators), and is therefore deemed to be sophisticated enough to participate in private, non-public investments. ADVERSE CHANGE REDEMPTION A right of a shareholder that requires the company to redeem a class of securities in the event the compan...