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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Public Relations (PR)Public Relations (PR) is the practice of managing and disseminating information from an individual or an organization to the public to influence their perception.Pump and DumpA Pump and Dump is a fraudulent scheme that attempts to boost the price of a stock through false, misleading, or greatly exaggerated statements, allowing insiders to sell at a profit.Purchase AgreementA Purchase Agreement is a legal document outlining the terms and conditions of a purchase of securities, including stock or bonds, by an investor.Purchase CommitmentA Purchase Commitment is an agreement by a buyer to purchase a specific quantity of a product at a specific price from a seller, often used to secure favorable terms.Purchase OrderA Purchase Order is a commercial document and first official offer issued by a buyer to a seller, indicating types, quantities, and agreed prices for products or services.Purchasing PowerPurchasing Power is the value of a currency expressed in terms of the amount of goods or services that one unit of money can buy.Push StrategyA Push Strategy is a marketing approach where a business attempts to take its products to the customers, typically through distribution channels.Put OptionA Put Option is a financial contract giving the owner the right, but not the obligation, to sell a specified amount of an underlying asset at a set price within a specified time.Put RightA Put Right is a clause in an agreement that allows an investor to force the company to repurchase shares or securities at a specified price under certain conditions.Qualified Business Income DeductionThe Qualified Business Income Deduction allows eligible small business owners and entrepreneurs to deduct up to 20% of their qualified business income, reducing their taxable income.Qualified DividendsQualified Dividends are dividends that meet specific criteria set by the IRS and are taxed at the lower capital gains tax rate rather than the higher rate for ordinary income.Qualified Institutional Buyer (QIB)A Qualified Institutional Buyer (QIB) denotes an entity legally empowered to invest on behalf of its clients and recognized by securities laws to need less regulatory protection than general investors.Qualified InvestorA Qualified Investor is an individual or entity that meets certain financial and experiential criteria, granting them access to investment opportunities not available to the general public.Qualified MajorityA Qualified Majority is a voting threshold used in decision-making processes, requiring a specified higher percentage of votes than a simple majority to approve a proposal.Qualified Non-U.S. InstitutionA Qualified Non-U.S. Institution is a foreign financial institution that meets specific regulatory criteria allowing it to invest in U.S. securities with certain tax advantages.Qualified Public OfferingA Qualified Public Offering is a public offering of securities that meets the requirements set by regulatory authorities, allowing a company to raise capital from the public market.Qualified Small BusinessA Qualified Small Business refers to a business that meets specific criteria set by the IRS, often eligible for tax benefits and incentives designed to encourage growth and investment.Qualified Small Business Stock (QSBS)Qualified Small Business Stock (QSBS) refers to shares in a corporation that meet specific criteria, offering tax advantages to investors under certain conditions.Qualitative AnalysisQualitative Analysis examines non-numeric data to assess a company`s quality, such as its business model, governance, and market position, offering insights beyond financial metrics.Qualitative ResearchQualitative Research is research based on non-numerical data, such as interviews and observations, providing insights into people`s attitudes, behaviors, and experiences.Quality Assurance (QA)Quality Assurance (QA) is the systematic process of verifying whether a product or service meets specified requirements, ensuring that the final output is defect-free and meets the quality standards.Quality Assurance ProgramA Quality Assurance Program is a systematic plan to monitor and evaluate the quality and standards of a product or service, ensuring it meets or exceeds customer expectations.Quality Assurance StandardsQuality Assurance Standards are established criteria within an industry or organization to ensure products and services meet minimum quality requirements, promoting consistency and customer trust.Quality ControlQuality Control is the process of inspecting and testing products or services to ensure they meet the specified standards and requirements before they are delivered to customers.Quality Improvement PlanA Quality Improvement Plan is a strategic document outlining specific steps and measures to enhance the quality of products, services, or processes within a startup.Quality IndicatorA Quality Indicator is a metric or measure used to gauge the quality of a product, service, or process, helping businesses ensure they meet customer expectations and regulatory standards.Quality MetricsQuality Metrics are standards of measurement used to evaluate the effectiveness, performance, and quality of products, services, or processes, ensuring they meet the desired standards.Quality of Earnings ReportA Quality of Earnings Report is an in-depth analysis of all the components of a company`s income and expenses, used to assess the sustainability and quality of earnings over time.Quality ScoreA Quality Score is a metric used by search engines and advertising platforms to assess the relevance and quality of advertisements and their landing pages, influencing visibility and cost.Quant StartupA Quant Startup refers to a startup that primarily uses quantitative analysis and algorithms to drive its business model, often seen in fintech, trading, or data analytics ventures.Quantitative AnalysisQuantitative Analysis involves the use of mathematical and statistical techniques to understand behavior and predict outcomes, often applied in financial analysis and risk management.Quantitative Easing for Startups (QES)Quantitative Easing for Startups (QES) creatively refers to policies or measures taken by governments or financial institutions to inject liquidity into the startup ecosystem, encouraging investment.Quantitative FundingQuantitative Funding refers to funding decisions based on quantitative analysis, focusing on numerical data, financial metrics, and statistical models to assess investment viability.Quantitative MetricsQuantitative Metrics are numerical indicators used to measure and evaluate the performance or success of an organization, project, or investment, such as revenue, profit margins, or user growth.Quantum of SolaceQuantum of Solace, creatively applied, could refer to the minimum amount of comfort or satisfaction needed by entrepreneurs and investors after facing the challenges of startup ventures.Quarterly Business Review (QBR)A Quarterly Business Review (QBR) is a meeting or report assessing a company`s performance over the past quarter, focusing on achievements, challenges, and strategic plans for the future.Quarterly Earnings ReportA Quarterly Earnings Report is a quarterly filing made by public companies to report their performance, including net income, earnings per share, and revenue, providing insights to investors.Quarterly ForecastingQuarterly Forecasting is the process of predicting a company`s financial performance, sales, or other key metrics for the upcoming quarter, aiding in strategic planning and decision-making.Quarterly Performance ReviewA Quarterly Performance Review is a regular evaluation of a business`s performance against its objectives and key performance indicators (KPIs) over a three-month period.Quarterly Tax PaymentsQuarterly Tax Payments are tax payments made every quarter by self-employed individuals and businesses on estimated income, helping manage tax obligations throughout the year.Quasi-ContractA Quasi-Contract is a legal concept where a court enforces an obligation on a party as if there was a contract, to prevent unjust enrichment in situations where no formal contract exists.Quasi-DebtQuasi-Debt is a type of financing that combines elements of debt and equity financing, typically structured as subordinated debt with flexible repayment terms.Quasi-Equity FinancingQuasi-Equity Financing is a type of investment that is structured to be similar to equity but is repaid like a loan, often used when traditional equity or debt financing is not suitable.Quasi-Experimental DesignA Quasi-Experimental Design is a research strategy that lacks the full control of true experimental designs but allows for examination of cause-and-effect relationships under less rigid conditions.Quasi-Fixed CostsQuasi-Fixed Costs are costs that are not strictly fixed or variable but have elements of both, fluctuating with business activity levels to some extent.Quasi-Government EntityA Quasi-Government Entity is an organization that operates independently but is partially controlled or funded by the government, often involved in public-private partnerships.Quasi-GovernmentalQuasi-Governmental describes entities that possess both governmental and private characteristics, often established to undertake specific public purposes with a degree of autonomy.Quasi-Public CorporationA Quasi-Public Corporation is a type of company that operates in the private sector but provides services or goods that are typically within the realm of government responsibility.Quasi-ShareholderA Quasi-Shareholder refers to individuals or entities that have an interest or stake in a company`s performance or outcomes without holding formal shares or equity.Quasi-Static AnalysisA Quasi-Static Analysis is an assessment method that approximates dynamic systems as static for the purpose of analysis, often used in product development and engineering within startups.