Escrow
Noun · Startup & VC
Definitions
An arrangement where money, shares, code, or other assets are held by a neutral third party until specified conditions are satisfied. In startup deals, escrow often appears in acquisitions, indemnities, and software source-code access arrangements.
In plain English: Assets held by a neutral third party until agreed conditions are met.
Example: "Part of the purchase price stayed in escrow until the post-close claims period expired."
Related Terms
- Burn Rate
- Compound Growth
- Cost Center
- Dead Cat Bounce
- Heads of Terms
- Holdback
- Holding Company
- Intellectual Property
- Investor Relations
- IOI
- Joint Venture
- Liquidation
- Liquidity
- LOI
- MOU
- Blended Rate
- Non-Compete
- Payback Period
- Primary Market
- Profit Center
- Public Offering
- Right of First Refusal
- Risk Capital
- ROFR
- Safe Harbor
- Secondary Market
- SOW