Fundraising and Equity Terms

Customer-to-customer or C2C is a business model mostly specific to the online world, where customers can share their assets between them.

A call option represents a contract between a seller and a buyer stipulating that the buyer can, but is not obligated, to buy stock, bond or another financial asset, and the seller is obligated to sell the respective commodity at an agreed price, if the buyer decides to buy. The term "call" comes from "calling the stock away".

Capital stands for anything that can augment the financial stability and future growth of a business. It is most often the money that can fund operations, provide for the daily expenses, and lead to expansion.

In a company, the cap table or capitalization table is a document that details how many shares and of what type each shareholder has. It will keep track of stock ownership as well as convertible securities, warrants and options, and stock compensation grants.

Carried interest, or “carry” for short, is effectively a payment given to investors for investment services that is taken out from the profits of the money managed. It can also be the proportion of a fund's profits received by the fund managers at the end of the year as compensation.

The concept of a Circular Economy focuses on minimizing waste, reusing materials, and regenerating the natural environment. When a product is no longer needed, its materials are reused to create another. Materials are kept in the economy as long as possible.

Clean Technology, also known as GreenTech, focuses on businesses that aim to improve sustainability using environmentally-friendly technologies. These businesses provide clean energy and sustainability-related products or services.

A cliff period, in the context of employee stock options and equity compensation plans, refers to a specific period of time at the beginning of an employee's tenure during which they do not yet have any vested rights to the granted stock options or equity. In other words, the employee must wait for the cliff period to pass before they can start exercising their stock options or become eligible to receive any equity.

The term "Closing" is used when a business can no longer function, cannot continue to operate, and needs to be shut down. The closure can be voluntary or involuntary, depending on the situation. This can be the outcome of a merger, bankruptcy or a lack of purpose.

Co-investments are minority investments generally made by accredited investors, such as business angels, family offices or VCs. Depending on the deal, they may have some perks, such as smaller fees – because they own only a percentage after the investment is finalized.