Upside

Definitions

1. The potential positive outcome or gain if things go well, whether in valuation, revenue, market share, or personal compensation. Startup decisions constantly weigh upside against execution risk and downside.

   In plain English: The possible benefit or gain if things go well.

   Example: "The deal had huge upside, but only if distribution partnerships actually materialized."

Related Terms

• Exit Multiple
• Hold Period
• Internal Rate of Return
• IRR
• Market Risk
• Power Law
• Risk Capital
• Risk Tolerance