Startup Fundraising Glossary

Navigate the world of startup financing with confidence

Explore a glossary of essential terms in startups, startup fundraising, bootstrapping and entrepreneurship. Decode the terminology and jargon with ease.

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New MarketA New Market strategy is where a business aims to sell its existing products or services to new customer segments or geographic areas.Next Round FinancingNext Round Financing is funding sought by a company after successfully completing an initial round of financing, to further grow and expand the business.Niche AuthorityNiche Authority is the status of being recognized as a leading expert or dominant player within a specific niche market.Niche CompetitorA Niche Competitor is a business that focuses on a specific segment of the market, often offering specialized products or services.Niche ExpansionNiche Expansion is the process of growing a business by identifying and serving additional niche markets related to the original focus.Niche ExpertiseNiche Expertise refers to specialized knowledge or skills in a particular area of the market, which can provide a competitive advantage.Niche ProductA Niche Product is a product that is aimed at a distinct group of customers with specific interests or needs, often underserved by the mainstream market.Non-Accredited InvestorA Non-Accredited Investor is an investor who does not meet the wealth or income requirements set forth by securities regulators to participate in certain types of investments.Non-Binding Term SheetA Non-Binding Term Sheet is a document outlining the terms of an investment agreement that is not legally enforceable.Non-Capital ResourcesNon-Capital Resources are resources that contribute to a startup`s growth that do not involve financial investment, such as expertise or industry contacts.Non-Cash ExpenseNon-Cash Expense refers to expenses recorded on the income statement, such as depreciation and amortization, that do not involve an actual cash outflow.Non-Compete AgreementA Non-Compete Agreement is a contract between two parties where one party agrees not to enter into competition with the other party in certain markets.Non-Dilution ProvisionA Non-Dilution Provision is a clause in an investment agreement that protects an investor from equity dilution in future financing rounds.Non-Dilutive FundingNon-Dilutive Funding refers to financing that does not require the sale of share capital, thus not diluting the ownership stake of existing shareholders.Non-Dilutive ShareA Non-Dilutive Share is a type of share or investment that does not dilute the ownership percentage of existing shareholders.Non-Disclosure Agreement (NDA)A Non-Disclosure Agreement (NDA) is a legal contract between at least two parties that outlines confidential material, knowledge, or information that the parties wish to share with one another for certain purposes, but wish to restrict access to or by third parties.Non-Equity AssistanceNon-Equity Assistance refers to support provided to startups that does not require equity, such as mentorship, office space, or services.Non-Equity CrowdfundingNon-Equity Crowdfunding is a crowdfunding approach where backers receive rewards or products instead of equity in the company.Non-Exclusive AgreementA Non-Exclusive Agreement is an agreement that does not limit the parties from engaging in similar agreements with other entities.Non-Executive BoardA Non-Executive Board is a group of board members who are not part of the company`s day-to-day operations but provide oversight and strategic advice.Non-Executive ChairmanA Non-Executive Chairman is a chairman of the board of directors who is not an executive or an employee of the company, providing an independent oversight.Non-Executive DirectorA Non-Executive Director is a member of a company`s board of directors who is not part of the executive team and offers an independent perspective.Non-Executive LeadershipNon-Executive Leadership involves leadership roles in a company that do not involve day-to-day management, often including advisory or board positions.Non-Financial SupportNon-Financial Support refers to assistance provided to startups that does not involve monetary contribution, such as mentorship, advice, or resources.Non-Fungible Tokens (NFTs)Non-Fungible Tokens (NFTs) are unique digital assets that represent ownership or proof of authenticity of a specific item or asset on a blockchain.Non-GAAP EarningsNon-GAAP Earnings are earnings reported by a company that do not conform to Generally Accepted Accounting Principles.Non-Linear GrowthNon-Linear Growth is growth that does not follow a straight line, often characterized by periods of rapid expansion and contraction.Non-Linear Revenue ModelsNon-Linear Revenue Models are revenue strategies that do not follow a straightforward, predictable pattern, often incorporating multiple income streams.Non-Linear StrategyA Non-Linear Strategy is a business strategy that does not follow a straightforward path but adapts to changing market conditions and opportunities.Non-Monetary AssetsNon-Monetary Assets are assets owned by a startup that do not have a direct cash value, such as intellectual property and brand equity.Non-Operating AssetsNon-Operating Assets are assets owned by a company that are not used in its primary business operations, such as investment properties.Non-Operating IncomeNon-Operating Income refers to revenue or expenses that are not related to the core operations of the business, such as investment gains or losses.Non-Operating RevenueNon-Operating Revenue is income derived from activities not related to a company`s primary business operations, such as investments or asset sales.Non-Operational ExpensesNon-Operational Expenses are expenses incurred by a company that are not related to its core operations, such as interest payments or losses on investments.Non-Participating Preferred StockNon-Participating Preferred Stock is a type of preferred stock that does not offer the holder the rights to participate in the company`s additional earnings beyond a certain amount.Non-Performing AssetA Non-Performing Asset is an asset that does not produce income, such as a loan in which the borrower is not making payments.Non-Preferential SharesNon-Preferential Shares are shares that do not offer preferential rights in terms of dividends or liquidation proceeds.Non-ProfitA Non-Profit is an organization that operates for the promotion of social causes and does not distribute its surplus funds to owners or shareholders.Non-Profit MotiveThe Non-Profit Motive is the intention to operate an organization without the primary goal of making profits for owners or shareholders.Non-Recourse FinancingNon-Recourse Financing is a loan where the lender is only entitled to repayment from the profits of the project the loan is funding, not from other assets of the borrower.Non-Recourse FundingNon-Recourse Funding is financing where the lender can seize the collateral if the borrower defaults, but cannot seek further compensation if the collateral does not cover the full amount of the loan.Non-Recourse LoanA Non-Recourse Loan is a loan where the lender`s only remedy in case of default is to seize the collateral securing the loan, without recourse to other assets of the borrower.Non-Recurring RevenueNon-Recurring Revenue is revenue that is not expected to occur regularly, in contrast to recurring revenue streams.Non-Solicitation AgreementA Non-Solicitation Agreement is an agreement that restricts an individual (usually a former employee) from soliciting employees or customers of the business after leaving the company.Non-Sovereign BackingNon-Sovereign Backing refers to financial support or investment not provided by government entities, typically referring to private sector investments.Non-Standard OfferingA Non-Standard Offering is a financing or investment proposition that does not conform to the typical terms or structures seen in the market.Non-Statutory Stock OptionA Non-Statutory Stock Option is a type of stock option that does not qualify for special tax treatment under the US Internal Revenue Code.Non-Strategic FundingNon-Strategic Funding is capital raised from sources that do not involve a long-term partnership or strategic alignment with the investor.Non-Strategic InvestorA Non-Strategic Investor is an investor who provides capital without seeking to influence the company`s business strategy or operations.Non-Tangible AssetA Non-Tangible Asset is an asset that cannot be touched or physically measured, such as intellectual property or brand reputation.