Founders Shares (Founders Stock)

Founders shares, also known as founders equity or founder stock, refers to the equity that is allocated to the founders of an organization. In reality, there is no legal difference between founder’s stock and common stock, other than the “founder’s stock” may come with additional restrictions, voting rights, and other rights.

Startup Terms

A

B

C

D

E

F

G

H

I

J

K

L

M

N

O

P

Q

R

S

T

U

V

W

X

Y

Z

Accelerator

Accredited Investor

Accrual Accounting

Acqui-Hire

Administration Fee

Aggregate Subscription Amount

Amendment (Contract)

Amortization

Ancillary Documents

Angel Group

Angel investors

Angel Syndicate

Annual Recurring Revenue (ARR)

Anti-Dilution Protection

Arc Advance

Arc Card

Arc Runway

Arc Treasure

Asset Lite

Authorized Shares

Automated Clearing House (ACH)

Bad Debt

Balloon Payment

Bank Reconciliation

Bargaining Power

Benchmarking

Bills of Exchange

Binding Agreements

Board of Directors

Board Rights

Bootstrapping

Bottom Up Financial Model

Break Even Point

Bridge Loans in 2023

Bullet Loan

Business Fundamentals

Business Loans

Buyout

Cap (Capitalization Table)

Cap (Convertible Note)

Capital Gains

Capital Growth

Capital Under Management

Cash Advance

Cash Flow Statement

Cash Inflows

Cash Outflows

Cash Position

Certificate of Incorporation

Change in Control

Churn Rate

Cliff vesting

Collateral

Common Stock

Compliance Costs

Condition Precedent

Contingency

Contingent Liability

Conversion Rights

Convertible Note

Convertible Preferred Stock

Corporate Bond

Cost of Capital

Covenants

Credit Facility

Credit History

Creditor

Crowdfunding

Cumulative Dividends

Current Asset

Current Liability

Customer Acquisition Cost

Customer Lifetime Value (LTV or CLTV)

Deal Lead

Debt Consolidation

Debt Financing

Debt-to-Equity Ratio

Debtor

Default (Financial)

Default (Technical)

Depreciation

Dilution

Dilutive Financing

Direct Lender

Dirty Term Sheets

Disbursement

Disclosure Schedule

Discount Rate

Disruption

Dividend

Double Entry Accounting

Down Round

Drag-Along Rights

Draw Down

Due Diligence

Duty of Care

Duty Of Loyalty

EBITA

Encumbered

Equity

Equity Dilution

Equity Financing

Exclusivity

Exit

Expense

Facility

Financial Statement

Fixed Interest Rate

Flat Round

Float

Flow of Funds

Forecast

Forgivable Loan

Founders Shares (Founders Stock)

Free Cash Flow (FCF)

Friends and Family Round

Full Drawn Advance

Fully Diluted Shares

Funding Round

Goodwill

Grant Award

Gross Burn Rate

Gross Income

Gross Margin

Growth At Any Cost

Growth Capital

Growth Rate

Growth Stage

Growth Strategy

Guarantor

Hard Money

Hard Money Lenders

Hedge Fund

Indemnification

Industrial Vertical

Information Rights

Insolvent

Intangible Asset

Intellectual Property

Interest Rate

Investment

Investment Multiple

Investment Vehicle

Investor

Investor Rights Agreement (IRA)

Invoice

Invoice Financing

Issuance of Original Securities

Issued Shares

Kickers

Lead Investor

Legal Fees

Leverage

Liability

Line of Credit

Liquidation Multiplier

Liquidation Preference

Liquidation Waterfall

Liquidity Event

Loan in Default

Loan Processing Fee

Loan-to-Value Ratio (LVR)

Lock Up Period

Loss of Control

Major Investors Right

Management Rights Letter

Mandatory Conversion

Margin

Mark Down

Mark Up

Market Penetration

Maturity Date

Merchant Cash Advance

Mezzanine Financing

Micro Venture Capital

Microloan

Most Favored Nation (MFN) Clause

Negative

Negative Covenant

Net Income

Net Profit

Net Worth

No Obligation to Advance

Non Dilutive Funding

Offering Period

Opportunity Cost

Options Pool

Origination Fee

Out of Pocket Costs

Overdraft Facility

Overdraft Stake (Owners Equity)

Participating Preferred

Payback Period

Payback Terms

Payment-in-Kind

Peer-Peer Lending

Personal Guarantees

Personal Property

Petty Cash

Pitch Competition

Pivot

Portfolio Company

Post-Money Valuation

Pre Seed Funding

Pre-Money Valuation

Preferred Equity (Preferred Stock)

Prepayment Penalty

Priced Round

Principal

Private Placement Memorandum (PPM)

Pro Rata Rights

Product-Market Fit

Profit and Loss Statement

Profit Margin

Projection

Proof of Concept

Protective Provisions

Prototyping

QSBS Exemption

Ratchet (Full) Dilution

Ratchet (Partial, Weighter) Dilution

Recapitalization

Receivable Financing

Receivables Factoring

Recurring Revenue Lending

Redemption Rights

Refinancing

Registration Rights

Repayment Terms

Representations and Warranties

Retention of Title

Revenue Based Financing

Revenue Sharing Note

Right of Audit

Right of First Refusal

Run Rate

Runway

SAFE Note (Financing)

Scalability

Secretary’s Certificate

Securities Exchange Commission (SEC)

Securities Law Compliance

Seed Funding

Senior Creditor

Senior Debt

Serviceable Available Market (SAM)

Serviceable Obtainable Market (SOM)

Shareholders’ Agreement

Silent Partner

Single Entry Bookkeeping

Small Business Association (SBA)

Small Business Association Loan

Small Business Innovation Research (SBIR)

Soft Landing

Software as a Service (SaaS)

Software Startup

Stand-Alone Convertible Note

Start-up Capital

Startup Advisor

Startup Incubator

Stock Purchasing Agreement

Strategic Investor

Strike Price

Success Fee

Sweat Equity

Target Rate of Return

Tender Offer

Term Loan

Term Sheet

Terminal Value

The 7(a) Loans

The 83(b) Election

The 409a Valuation

The 504 Loans

Top-Down Forecasting

Total Addressable Market (TAM)

Trajectory Growth Funding

Underwriter

Underwriting

Underwriting Fee

Use of Proceeds Document

Valley of Death

Valuation Cap

Valuation Diverge

Variable Interest

Venture Capital

Venture Debt

Vesting Schedule

Veto Rights

Voluntary Conversion

Voting Rights

Vulture Capitalist

Warrant

Warrant Coverage

Waterfall Equity

Wire Transfer

Working Capital

X-Mark Signature

Yield

Yield Advantage

Yield Basis

Yield Curve

Yield Spread

Z-Tranche

Zero Balance Account

Zero Based Budgeting

Zombie Bank

Zombie Company

Zombie Debt