Fundraising and Equity Terms

B2B is a sales model that refers to a business that is conducted between one company and another. For example, this could be between manufacturers, wholesalers, and retailers, who interact with each other to eventually deliver a product to consumers.

Business to business to consumer (B2B2C) describes business relationships in which two companies partner or enter a business agreement to offer services or products to consumers.

B2C is a sales model that refers to the direct selling of services and products between a business and the end-users or consumers. In this case, businesses do not deal with any middlemen and often sell their products online.

Business-to-government or B2G is a business model where your products or services target government institutions.

The board of advisors is a group that will bring impactful knowledge in the company. It's an informal group of experts and advisors that will help with different perspectives and ideas. Their input is essential in decision-making but, compared with the board of directors, they usually don’t have a voting right and cannot be held liable.

Shareholders usually elect a board of directors. The members can be shareholders within that company and/or be paid for their services. They have legally defined responsibilities and can be held responsible for the decisions made. It's not a flexible structure and it's harder to manage such boards, but the knowledge and expertise they bring to a company can make a real difference.

Bridge funding is a round of financing most suitable for companies looking for short-term financial support until they reach the point where they are ready for a bigger round of funding. It can use different investment instruments, such as equity, convertible notes, SAFE, etc.

The burn rate is a standard key performance indicator (KPI) that refers to how a company spends its capital. It tracks the monthly expenditures of a company before it starts generating a positive cash flow from its operations.

You have probably already encountered several types of business plans, or you will, so we will offer just a general definition. A business plan outlines how a company plans to generate revenue and profit. It is a presentation covering multiple topics such as value proposition, target market, revenue stream, cost structure, competition and many more.

Consumer-to-business, or C2B, is a business model where customers are the ones offering a product or a service to the company.