Add-on | A private equity- or venture capital-backed portfolio company acquires a smaller company, or the assets of another company. This is typically to consolidate market position, or acquire proprietary technologies from competitors, and often involves acquiring smaller rivals. |
Angel | An initial stage of funding provided by angel investors, typically friends, relatives, or individual entrepreneurs. |
Buyout | A leveraged acquisition where the private equity firm will typically acquire the whole, majority of, or a controlling stake in, a private company. |
Expansion Capital | A later-stage venture capital round in companies that are looking for capital to expand or restructure operations, enter new markets, or finance a significant acquisition without a change of control of the business. |
Grant | An award of financial assistance, typically by a government, to an eligible grantee with no expectation that the funds will be paid back. |
Growth Capital | An equity investment in a private company, where a private equity firm typically acquires a non-controlling or minority stake with a view to providing capital to increase the expansion plans of the company. |
Merger | Where a private equity or venture capital-backed company merges with another company to form a new entity. |
PIPE (Private Investment in Public Equity) | An investment made by a private equity or venture capital firm in a public company, which remains public post-investment. |
Pre-IPO | An investment in a company that is set to complete its IPO in the near future, often at a discounted price relative to expected IPO pricing amount. |
Public-to-Private | Where a company is bought from the stock exchange and de-listed by the private equity firm. |
Recapitalization | An investment that typically includes the restructuring of debt and equity, with a view to stabilizing the company’s capital structure. |
Secondary Stock Purchase | Where part or all of an investor’s stake in a venture capital-backed company is acquired directly from a shareholder/investor, rather than purchasing stock from the company. |
Seed | The first stage of venture capital financing by a professional venture capital firm, typically a small investment in a very early-stage company that has usually not yet established commercial operations. |
Series A | Series A preferred stock leads on from the Angel/Seed Stages, and is the first significant round of venture capital funding offered by a portfolio company to the venture capitalist. Series A preferred stock is convertible into common stock in certain cases such as an IPO or the sale of the company. |
Series B, Series C, etc. | A mid-stage second round of financing provided by venture capitalists. Successive rounds are then termed Series C, Series D, and so forth, each offering preferred stock typically once a company has accomplished certain milestones in developing its business. |
Unspecified | Round A venture capital financing round where the stage/series has not been disclosed. |
Venture Debt | A type of debt financing provided to venture capital-backed companies by a specialized financier to fund-working capital or capital expenses. Venture debt providers combine their loans with warrants or rights to purchase equity, to compensate for the higher risk of lending. |
