Fundraising and Equity Terms

This metric describes the monthly decline of revenue from factors such as user or subscription cancellations. It can be described as a simple currency amount or as a percentage.

Similar to the IRR, is a KPI that shows the performance and the investor's return on investment. MOIC is a gross metric, meaning that it is calculated before fees and carry. It can be estimated at a deal or portfolio level to evaluate the performance of both realized and unrealized investments. It’s calculated by summing up the realized and unrealized values and dividing the result by the total invested amount.

Net profit represents a company’s total earnings after subtracting all expenses. These expenses include not only the cost of the goods but also other business expenses. It is an indicator that shows the profitability of the business.

A network is a social structure where people establish a mutually beneficial relationship with other businesses and potential clients or customers. In this social structure, people can share information, knowledge, and services and increase the presence of their businesses.

A Nominee is a legal entity with separate and distinct rights, similar to a person or corporation. In a Nominee, a party known as a beneficiary gives another party, the nominee, the right to hold title to and manage property or assets. Thus, we will have a Beneficiary and a Nominee, who legally holds the shares/assets.

A non-compete agreement is a legal agreement or clause in a contract specifying that an employee must not compete with an employer after the employment period is over. These agreements also prohibit the employee from revealing proprietary information or secrets to other parties during or after employment.

A non-disclosure agreement, also known as an NDA or CA (confidentiality agreements), is a contract by which one or more parties agree not to disclose confidential information shared with them. An NDA is typically put in place any time data is disclosed to potential investors, creditors, employees, advisors, clients, or suppliers - or any other stakeholders that need access to the company's confidential information.

A non-sophisticated investor represents an investor who is not specialized. They are also known as day-to-day or retail investors when it comes to crowdfunding. They represent the people who do not meet the criteria required to fit into the category of a sophisticated investor.

An operating agreement is a key document used for limited liability companies that defines the terms, outlines the financials and the functional decision-making in a structured manner, according to the owners' needs.

An option pool is a set of shares reserved for employees, advisors, and consultants as part of their compensation package. The pool is created by the company and can be expanded through the issuance of new shares or by allocating existing shares.