Startup Fundraising Glossary

Navigate the world of startup financing with confidence

Explore a glossary of essential terms in startups, startup fundraising, bootstrapping and entrepreneurship. Decode the terminology and jargon with ease.

  • Non-Traditional Financing

    Non-Traditional Financing refers to financing methods outside of conventional bank loans, such as crowdfunding, peer-to-peer loans, or angel investments.

  • Non-Traditional Markets

    Non-Traditional Markets are markets that are not served by traditional businesses, often targeted by startups for new opportunities.

  • Non-Voting Shares

    Non-Voting Shares are shares that grant the shareholder equity in a company but do not grant voting rights in shareholder meetings.

  • Nondisclosure Norms

    Nondisclosure Norms are industry or sector-specific practices regarding the confidentiality of sensitive information.

  • Nontangible Value

    The Nontangible Value is the worth of a company`s non-physical assets, such as brand reputation, intellectual property, and customer relationships.

  • Normal Course Issuer Bid (NCIB)

    A Normal Course Issuer Bid (NCIB) is a type of stock buyback where a company purchases its own shares from the marketplace.

  • Normal Course Offering

    A Normal Course Offering is a standard, routine offering of securities to investors, typically without any special features or conditions.

  • Normal Goods

    Normal Goods are goods for which demand increases as consumer income rises, unlike inferior goods, for which demand decreases as consumer income rises.

  • Normalized Earnings

    Normalized Earnings are earnings adjusted for factors that are not considered normal or recurrent, providing a clearer picture of financial health.

  • Normalized Financial Statements

    Normalized Financial Statements are financial statements that have been adjusted for items considered abnormal, non-recurring, or unrelated to ongoing operations.

  • Normative Analysis

    Normative Analysis is evaluation based on what ought to be or what is considered desirable, often in the context of ethical or policy implications for startups.

  • Normative Economics

    Normative Economics is a branch of economics that expresses value judgments about economic fairness or what the economy ought to be like.

  • Not-for-Profit

    A Not-for-Profit is an organization that focuses on a mission or purpose other than making a profit, often eligible for tax-exempt status.

  • Notation Agreement

    A Notation Agreement is an agreement detailing the terms of a convertible note, including interest rate, maturity date, and conversion mechanics.

  • Note

    A Note is a financial security that generally represents a loan and obligation to pay back the amount borrowed.

  • Note Conversion Cap

    The Note Conversion Cap is the maximum valuation at which a convertible note can convert into equity, protecting investors from dilution.

  • Note Payable

    A Note Payable is a written promise to pay a specified amount of money, at a certain time, to the holder of the note.

  • Noteholder

    A Noteholder is an individual or entity that owns a note, a financial instrument signifying a debt or obligation.

  • Notice of Conversion

    A Notice of Conversion is a notice from the holder of a convertible note or security to the issuer, indicating the intent to convert the note into equity.

  • Notice of Default

    A Notice of Default is a formal notification issued to a borrower indicating a failure to meet loan obligations, typically regarding a payment default.

  • Notice of Funding Interest

    A Notice of Funding Interest is a formal declaration by potential investors indicating their interest in participating in a financing round.

  • Notice of Interest

    A Notice of Interest is an official declaration by an investor indicating a preliminary interest in participating in a funding round.

  • Notice Period

    The Notice Period is the time period between the receipt of the letter of dismissal and the end of the last working day.

  • Notice to Proceed

    A Notice to Proceed is a formal notification that gives a contractor or vendor the green light to begin work on a project.

  • Novation

    Novation is the act of replacing one party in a contract with another, or replacing one legal obligation with another.

  • Novation Agreement

    A Novation Agreement is an agreement through which one party transfers all its obligations and rights under a contract to a third party.

  • Novation in Funding Agreements

    Novation in Funding Agreements is the act of replacing one party with another within a funding agreement, with all parties agreeing to the substitution.

  • Novel Business Models

    Novel Business Models are innovative or unconventional business models adopted by startups to disrupt traditional markets or create new ones.

  • Novelty Analysis

    Novelty Analysis is the process of assessing the novelty and uniqueness of a startup`s product or service, often for patentability.

  • Novelty Check

    A Novelty Check is a symbolic presentation check that represents funds donated or awarded, often used in promotional or ceremonial settings.

  • Novice Entrepreneur

    A Novice Entrepreneur is an individual new to founding or running a startup, often in the early stages of learning about entrepreneurship.

  • Nurture Campaigns

    Nurture Campaigns are marketing efforts focused on engaging with potential customers through the provision of relevant, valuable content to help move them through the sales funnel.

  • Nurture Funding Relationship

    Nurture Funding Relationship involves the ongoing effort to maintain and strengthen the relationship between startups and their investors beyond the initial funding phase.

  • Nurture Investment

    Nurture Investment focuses on investments not just on financial returns but also on the growth and development of the startup.

  • Nurture Marketing

    Nurture Marketing involves marketing strategies focused on building relationships with potential clients by providing valuable content and engagement.

  • Nurture Program

    A Nurture Program is a strategic initiative designed to support and develop startups or new ventures through resources, guidance, and support.

  • Nurturing Ecosystem

    A Nurturing Ecosystem is a supportive environment that fosters the growth and success of startups through resources, mentorship, and networking opportunities.

  • Nutshell Summary

    A Nutshell Summary is a concise summary that captures the essence or key points of a business plan or investment proposal.

  • Objective Key Results (OKRs)

    Objective Key Results (OKRs) are a framework for defining and tracking objectives and their outcomes, commonly used to measure performance.

  • Objective-driven Development

    Objective-driven Development is a development approach where product or service enhancements are directly aligned with strategic business objectives.

  • Off-Balance Sheet Financing

    Off-Balance Sheet Financing involves funding obtained through methods that do not require the company to include liabilities on its balance sheet.

  • Off-Market Deal

    An Off-Market Deal is a private agreement for the sale or purchase of assets or shares, not conducted through a public exchange.

  • Offensive Marketing Warfare

    Offensive Marketing Warfare involves aggressive marketing strategies aimed at achieving market dominance or outperforming competitors.

  • Offer Conversion Rate

    The Offer Conversion Rate is the percentage of investment offers that successfully convert into actual investments during a fundraising round.

  • Offering Memorandum

    An Offering Memorandum is a legal document stating the terms of the investment and the risks involved, provided to prospective investors.

  • Offering Price

    The Offering Price is the price at which shares are offered for sale to investors during an initial public offering or other issuance.

  • Offering Round

    An Offering Round is a specific instance of fundraising where a startup seeks to raise capital from private or public investors.

  • Offshore Funding

    Offshore Funding involves capital raised from investors located outside the startup`s home country, often used to leverage tax advantages or access new markets.

  • Omnichannel Fundraising Approach

    An Omnichannel Fundraising Approach utilizes multiple channels, both online and offline, in a cohesive manner to engage and secure investments from a wide array of investors.

  • Omnichannel Marketing

    Omnichannel Marketing is a marketing strategy that provides a seamless customer experience across multiple channels, both online and offline.