Fundraising and Equity Terms

Common stock is a type of security that represents the ownership of equity in a company. It usually offers voting rights to the shareholder, such as the possibility to participate in choosing the board of directors or deciding corporate objectives.

Competitive analysis is a strategy that involves researching major competitors, their products, marketing tactics, sales strategies in order to improve the company and gain a competitive advantage.

Investors can calculate Compound Monthly Growth Rate (CMGR) to determine the periodic growth of an investment over a specific time period.

Construction technology focuses on innovative machinery and software used during a project's construction phase, which will develop the automation and efficiency of the construction methods.

Consumer Technology focuses on any form of technology that is intended for use by general consumers, not intended for governmental, military or commercial use. Examples include computers, mobile phones, and Wi-Fi routers.

The number of conversions is determined by the number of users who take a desired action by the business. The conversion rate is represented by the number of desired actions, such as sales, divided by the total number of users.

Convertible notes are loans that will convert into equity "triggered" by an event, e.g. another funding round. If no such event occurs, the debt is repaid at the maturity date set in the agreement unless the terms of the note allow for equity conversion at a discounted price at its maturity. If the convertible notes accumulate interest, the interest is also converted into equity.

COGS refers to the direct expenses of production, not including indirect expenses such as distribution costs or marketing. The cost of goods sold is calculated by adding the beginning inventory with the purchases made during that specific period and subtracting the ending inventory.

The covenants represent legally binding clauses that exist in financial contracts. They ensure that certain activities will or will not be carried out, or that certain thresholds will need to be met. When it comes to borrowing money, they are meant to protect the creditor from risks by restricting borrowers' actions.

CAC refers to the costs incurred to acquire a customer. This is an important business metric because it measures the value that specific customer comes with.