Fundraising and Equity Terms

Generally, it refers to a provision in a contract that specifies how the parties belonging to a particular country/state – and consequently obeying its laws – should interpret the agreement. This is especially useful in international contracts, but also in national ones, in case the laws differ from county to county.

The term gross margin refers to a profitability measure that looks at a company's gross profit compared to its revenue or sales. A company's gross margin is expressed as a percentage. Gross profit is determined by calculating gross sales. The higher the gross margin, the more capital a company retains, which it can then use to pay other costs or satisfy debt obligations.

Gross profit is the profit a company makes after deducting the costs associated with making and selling its products, or the costs associated with providing its services. Gross profit will appear on a company's income statement and can be calculated by subtracting the cost of goods sold (COGS) from revenue (sales).

Human Resources Technology focuses on automating human resources departments within companies by combining technology and innovation with the activities specific to this department. It seeks to automate tasks that are usually time-consuming, such as filing, compensation management, and data management.

Health Technology focuses on the use of technology to improve the delivery, consumption and payment of care. HealthTech companies aim to optimize patient-focused healthcare through solutions like cloud computing and internet services.

A company that specializes in assisting early-stage businesses along the many stages of development, until they have the monetary, technical, and logistical resources to operate on their own. An incubator also supports the development of a startup from an early-stage concept to a self-sustaining business.

A contract of indemnity (or an indemnification) is a legal arrangement between two parties in which one party commits to compensate the other for any potential losses or damages. The insurer is the one who indemnifies the policyholder by promising to reimburse the individual or business in the event of a covered loss.

Financial statements and other company information are required to be provided to the investors under information rights. An Investor Rights Agreement generally contains provisions for this.

An initial public offering (IPO) refers to the process of offering shares of a private corporation to the public in a new stock issuance for the first time. An IPO allows a company to raise equity capital from public investors.

An insider round is a round of financing where the already existing investors participate primarily or entirely and choose to support the company further in its development process.