Lexicon

An estimate of what the company is worth. This would help the investor determine whether the price paid per share is a fair price, a good investment, or a poor investment. To value a company, an investor should consider the assets and liabilities of the company. A startup typically has few tangible assets (such as property), it typically has more intangible assets such as patents, copyrights, software, trade secrets, customer relationships and other items of growth potential. A startup typically has liabilities such as loans outstanding.

Financial capital provided to startup companies. The typical venture capital investment occurs after the initial seed funding, angel investment or crowdfunding round, when the company has demonstrated that the idea is feasible (sometimes called a "proof of concept"). Venture capitalists usually get a large portion of the company's ownership and significant control over company decisions.