REFERENCE DOCUMENT
The Glossary
Startup and VC terminology, defined honestly. Definitions may differ from what you were told during onboarding.
The amount of time before you update your LinkedIn. Measured in months. Currently shrinking.
We were wrong. The new direction is also probably wrong, but we are very excited about it.
Failures, rebranded. Used exclusively in investor updates and post-mortems. Never in real time.
A 12-month waiting period before you own anything. Designed to ensure you stay long enough to matter, then leave before you cost too much.
A contractual guarantee that investors get paid before you do. The multiplier is negotiable. You were not in that negotiation.
The real number. The one that makes your percentage look smaller. Always use this one when calculating your actual stake.
The right to invest more money to avoid being diluted. You do not have these. They do.
An independent appraisal of your company's common stock, conducted by a firm that has never spoken to a customer. Sets your strike price. Non-negotiable.
A transaction in which a company is purchased for its talent. The product is shut down. Your options are underwater. The founders do fine.
A provision allowing majority shareholders to force minority shareholders to approve a sale. You are the minority shareholder. You will be dragged.
Someone who receives equity in exchange for occasional emails and one intro that never panned out.
A restructuring of the company's equity that benefits the people who structured it. You will receive a DocuSign.
A private company valued at over $1 billion. Employees of unicorns have a median liquidity of $0.
Agreement with the founder's worldview. Assessed in the final interview round. Retroactively cited in terminations.
A state in which everyone agrees with the decision that has already been made.
A resource you are always out of and always expected to find more of.
Doing something that already exists, but with an app, and at a loss, until the incumbents either acquire you or copy you.
Someone who posts on LinkedIn about lessons they learned from failure, without mentioning the people who did the work.
Definitions are non-binding and subject to change pending board approval.