Capital Glossary

Browse 15 capital terms defined in plain English, from the cultural dictionary of computing.

15 Capital Terms

Equity Financing
Raising capital by selling ownership in the company rather than borrowing money. Equity financing is the default model for venture-backed startups because...
Evergreen Fund
An investment fund without a fixed end date, allowing capital to stay deployed and recycled over longer periods instead of following a standard fund lifecycle....
External Funding
Capital brought into the company from outside sources such as investors, lenders, or grant makers rather than from internal revenue or founder savings. The...
Family Office
A private investment organization that manages wealth for one family or a small set of families, sometimes participating in startup investing directly. Family...
Funding Round
A discrete event in which a startup raises capital from investors under a defined set of terms. Funding rounds mark shifts in ownership, valuation, and company...
Fund of Funds
An investment fund that invests in other funds rather than directly into operating companies. In venture ecosystems, fund of funds capital often sits behind...
Impact Investing
Investing with the intention of generating measurable social or environmental impact alongside financial return. In startup contexts it often appears in...
Non-Dilutive
Describing funding that does not require giving up ownership in the company, such as revenue financing, grants, or certain forms of debt. Non-dilutive capital...
Private Equity
Investment in privately held companies, often through larger control-oriented transactions than typical venture capital. In startup discussion, private equity...
Raise
To secure external capital from investors or other sources for the company. In founder speech, 'raising' usually implies the entire process of pitching,...
Round Size
The total amount of money being raised in a financing round. Round size shapes runway, dilution, investor mix, and expectations about what milestones should be...
Smart Money
Capital from investors who are expected to provide not just money but also expertise, network access, recruiting help, or market credibility. Founders use the...
Startup Funding
The capital a startup raises or secures to build product, hire people, and extend runway while it grows. It can come from founders, angels, venture funds,...
Type of Round
The classification of a financing event, such as pre-seed, seed, Series A, bridge, extension, or secondary-heavy transaction. The type of round affects...
Underfunded
Operating with less capital than the business realistically needs to pursue its plan at an acceptable level of risk. Being underfunded can force discipline,...

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