Venture Capital Terminology #
- 2 and 20: A management fee structure where VC’s take a 2% management fee annually and 20% of the fund profits when the investment is returned
- carry: profit percentage managers take on funds
General Terminology #
- lockup: the period of time where you cannot access your capital in a fund. E.g. one year lockup.
- runway: how long a startup will survive at the current revenue and expense rates
- Copyleft: an open-source paradigm where by using a copyleft software you are obligated to both open-source whatever you are working on and contribute back to the original software
- s1: The form a company files when going public
- f1: The foreign version of an s1